Mieco: Part VI

In Mieco: Part V, I wrote the following:

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?
Think about it
dude… :D

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28th Aug 2006.

Mieco last traded today at 0.985 sen!

Mieco reported its quarterly earnings today, reporting a net earnings of 2.891 million.

Remember, the first sign of weakness was stated in Mieco. Quote: "As noted, the first sign of weakness in the company’s earnings happened when Mieco announced its 03 q4 earnings on 24th May 2005"

And this is what i stated in Mieco: Part V. Quote: " Isn’t it more prudent to avoid the share until we have better earning visibility?"

So we have the inital sign of earnings turning.

But the balance sheet is still looking awful!

Loans total over 220 mil. Piggy bank cash is a mere 18.8 million only.

How?