Wednesday, February 22, 2006

Titanic Bull Again!

Flashback (see Titan ):


It's just normal.

Just prior to their listing, during their ipo period, these companies would promise their prospective investors heaven and earth. Bright future prospects with optimistic earnings growth.

And of course, needless to say, their merchant bankers, marketing their ipo, were just as optimistic.

Oh... i am talking about Titan Chemicals.

Here are some of the optimistic claims made on the local news media.

  • Friday May 27, 2005
    Titan confident of meeting 2005 profit forecast

    TITAN Chemicals Corp Bhd is optimistic that it can meet its net profit forecast of RM604mil for the financial year ending Dec 31, 2005.

    “Based on an annualised first quarter net profit, we have exceeded the forecast,” said chief financial officer Fauzi Ghani at a ceremony to launch the company's prospectus in Kuala Lumpur yesterday.

After being listed, the company made its 2005 Q2 earnings report on Aug 25th. It reported a net profit of 111.326 million for the quarter, giving it a year-to-date total net profit of 270.585 million.

And of course the company was very upbeat the day it released its earnings.

This was one of the headlines.

  • Friday August 26, 12:38 PM

    Malaysia Titan sees strong profit margin until 2009

    KUALA LUMPUR, Aug 26 (Reuters) - Malaysia's Titan Chemicals Corp said on Friday it expects its strong profit margin to continue until 2009.

    Managing director Donald M. Condon Jr says Titan Chemicals has been largely unaffected by the surge in oil prices because it is able to pass growing costs to customers

And here is a snippet from another article.

  • Titan on track to meet financial goals
    September 5 2005

    TITAN Chemicals Corp Bhd, Malaysia’s largest petrochemical company, said it remains on track to meet or exceed its financial goals for the full year, allaying concerns over the negative effect of higher oil prices on the company.



Titan just announced its earnings tonight.

And how much was promised by Titan again? RM604 million.

And how much did Titan deliver? RM361 million.

Just saw this shocking news article: Titan posts record earnings of RM361m

Record earnings? Excuse me, Titan was SOLD to the investing public in a titanic IPO worth some rm950 million. And the whole valuation was based on the fact that Titan itself gave a promise that it would deliver some rm604 million in net earnings. And how much did Titan deliver? rm361 million!

Here is some titanic stuff from that article..

  • Speaking at a media briefing in Kuala Lumpur on Feb 22, Titan managing director Donald M. Condon Jr attributed the impressive results to the strong first-half performance.

Well I am impressed, aren't you?

  • On the performance of Titan’s share price: “We do think our share is undervalued. That’s why we’ve put together a share buyback plan. The plan will be put in place depending upon how the share continues to do in the market.”

Undervalue? Did he say undervalue?
Titan clsoed the day trading at rm1.35.
What was Titan IPO price? rm2.17!

Here is the summary of Titan's earnings from yahoo news..

Titan Chemicals Corp. Bhd. (5103.KU) - Malaysia

4Q ended Dec. 31:

Figures are in Ringgit

2005 2004
Revenue MYR1,145,187,000 MYR1,159,388,000
Pretax Profit 34,938,000 248,514,000
Net Profit 19,282,000 119,756,000
Earnings Per Share 1.24 Sen 9.11 Sen
Dividend 3.00 Sen Omitted

12 months ended Dec. 31:

Revenue 4,497,571,000 3,555,088,000
Pretax Profit 503,197,000 544,241,000
Net Profit 361,781,000 262,263,000
Earnings Per Share 23.31 Sen 19.95 Sen
Dividend 6.00 Sen Omitted


Anonymous said...

Are you doing self censorship?
How come you stike-out all your article?

Moolah said...


Not sure what you mean by strike-out... care to explain?

Anonymous said...

I think it was my browser.
Using firefox I saw a long line crossing across the article.
But with IE it is OK.

Have a nice day.

Moolah said...

Oh, i see... yeah.. i underlined certain issues in that posting.

Anyway, thanks for letting me know!