Time to look at Megan Media Holdings again.. :D
Here's a good exercise. Remember all the concerns I mumbled about? Since Megan Media will be reporting their earnings this month, let's list all of them concerns again so that when Megan Media reports its earnings, we can see clearly if Megan's situation improved or not...
1. Declining Net Profits.
Here is the most recent 7 quarterly earnings. Read from left to right with the last being the latest. The worry was the clear decline in earnings.
- 12.7 mil, 14.3 mil, 15.1 mil, 15.64 mil, 21.1 mil, 12.9 mil, 3.9 mil
2. Declining Net Profit Margins.
The last 4 quarters net profit margins.. and clearly the concern was the drastic slump in profit margins!
- 7%, 8%, 5%, 3%
Inventories.............................................. 73,543
Trade receivables..................................... 333,357
Other receivables,deposits & prepayments......18,505
Fixed deposits with licensed banks............... 3,589
Cash and bank balances.............................. 93,998
Tax recoverable........................................ 410
Total...................................................... 523,402
The above was the snapshot of Megan's Current Assets in their last earnings report.
The concern was on ...
a) Trade receivables: 333.357 million.
b)Inventories: 73.543 million.
As mentioned and explained in that posting.. the trade receivables were soaring and so were the inventory levels.
Would we see any improvement? And how much improvement do we want to see?
And last but not least the debts issue.
Total borrowings for Megan now stands at 725.151 million. Would we see some decline in Megan's borrowings or would we see Megan borrowings increase yet again?
How?
If there is no drastic improvement or if all these concerns still continue to worsen... what's the most commonsense thing to do?
But then... again... commonsense would have told one to sell this stock years ago!
Tiok boh?
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