DVM: Part III

DVM, a company whose expertise is in the broadband telephony and Internet Protocol mobile products, has a write-up in the Business Times today. ( see DVM banks on revenue from abroad )

Yes, this is the same DVM Technology that I have blog a couple of times before ( see DVM and DVM: Part II )

Firstly, it was nice to see the Business Times stating the financial performance right at the start of the article.

• In fiscal 2005, DVM made a net loss of RM8.9 million on RM11 million revenue. Net profit and revenue stood at RM848,000 and RM11.5 million respectively in 2004.

The last sentence of the write-up stands up.

• Chen, however, declined to comment on the company's financial performance for fiscal 2006, only expressing optimism on the group's prospects, fuelled by its business development efforts.

Perhaps Chen should have been reminded that as the executive director of a public listed company, he should understand the importance of explaining the extremely poor results of DVM to his minority shareholders. Recording a loss of rm8.9 million from a a paltry revenue of rm11 million is truly shocking to say the least. Hence, he should understand he has the duty to explain clearly to the investors who purchased shares in his company because they believed in the long term prospect of his company.

Expressing optimism on the group's prospects is simply not enough. How does he expect his shareholders to continue to share his optimism when the past results tells a horrific story?

So don't you agree that by declining comments on such issues, as why the company lost so much money, just shows the utter lack respect of the executive director to his shareholders.

ps.

DVM was sold to the investing public at an IPO price of 40 sen. DVM is now trading at a price of 11 sen. Another good example of the destruction of market wealth in our stock exchange!