Flashback....
In Mieco
What a huge difference! No?
And even if Mieco’s earnings does turnaround… isn't there a possibility that whatever earning derived from its new plant might be used to pay for its debts? And if so, what’s left then for the investor?
How?
Mieco last traded at 1.37. Its warrants closed at 0.50.
Still think that now is an opportunity to invest in the stock?
How about avoiding?
How about selling?
Yes, again… there is no doubt that when Mieco’s new factory is fully operational, there is a huge possibility that Mieco’s earnings will turnaround.
But the biggest issue is: WHEN!
When?
Bila?
Consider this.. if Mieco’s new plant needs another 6 months or so to start producing (if only hor.. me have no idea when its factory is ready) and in the meantime Mieco’s quarterly earnings continues to decay...just imagine what would happen to Mieco’s share price? Isn’t there not a possibility that the share price might continue to drop some more if and if Mieco’s earnings does not improve?
Isn’t it more prudent to avoid the share until we have better earning visibility?
Why be a hero in a hard place?
Why take such unwarranted risk in the stock market?
Do we want to end up as a zero? A zoro? Or a Soh-loh?
Think about it dude… :D
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Hmmm.... and what is even more interesting is the following...
1. At 2.36, a buy for the longer term.
2. At 1.37, still a buy for the longer term.
3. At 1.00 (yup Mieco is now trading at 1.00!!), Mieco is still a BUY!!!
:P
And all this while... Mieco's fundamentals is clearly decaying. Cash is clearly depleting. Loans building up. Profitability margins have been eroding. And worse of all, Mieco is now losing money.
And wouldn't you find it strange that iCapital still has a buy rating on it?
Now consider the vested interests it has, do you rate their ratings and recommendations as partial or impartial?
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Dejavu!!
Company is not doing well BUT the management comes out and insist that the company prospect is still bright!
Guess what? On 22nd Nov 2005, Mieco announced that it lost 3.742 million for its 2005 Q3.
Present day, 21st Feb 2005, 4.30 pm, Mieco last traded at 1.00. Again the Fisher question is asked. Would the investor do well if he/she excludes themselves from such an investment?
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LOL!!
The share price is not doing well!
Speaks volume for the quality of Mieco Chipboard as a share, isn't it?
Reminds me of one of my Granny's repeated saying (excuse the English here), "If give people, people also dowan, like this type stuff means no good stuff!"
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Mieco just announced its earnings (Mieco last traded at 1.03. Its warrants closed at 0.33)....
Mieco Chipboard Bhd (5001.KU) - Malaysia
3rd quarter ended Sep. 30:
Figures are in Ringgit (MYR).
2005 2004
Revenue MYR77,848,000 MYR63,728,000
Pretax Profit (4,731,000) 11,461,000
Net Profit (3,742,000) 9,161,000
Earnings Per Share (1.78 Sen) 4.36 Sen
Dividend Omitted Omitted
9 months ended Sep. 30:
Revenue 201,019,000 172,573,000
Pretax Profit 2,848,000 28,115,000
Net Profit (1,136,000) 21,540,000
Earnings Per Share (0.54 Sen) 10.26 Sen
Dividend Omitted Omitted
(Figures in parentheses are losses.)
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