MaeMode Part II

My Dearest Ethan,

You have commented on the previous blog posting on MaeMode.

• Actually Maemode debt is mostly for the ongoing project, and it have secure the all those recurring biz that stablize their income. They also setting up new facilities in vietnam, china and indonesia and the upcoming quarter report should be in flying color again. Maybe we can have some discussion on it?

Quote: MaeMode debt is mostly for the ongoing prject.

That perhaps would have been an acceptable explanation.

However, when one examines MaeMode historical record of its cash/debt, its so clear that there's evidence of tremendous debt built up.



Have a look again.

In 2002, MaeMode was in a nett debt position of 65.9 million.
Currently, MaeMode is now in a nett debt position of 157.7 million.

So in this span of some 4 3/4 years, MaeMode's net debt has increased by a whopping 91.8 million.

Now ask the simple justification. Is the end result in net profits justify such debt built up?

Back in 2002, MaeMode earned some 8.259 million.
Currently, MaeMode earned some 18.286 million for its most recent 12 months.

So for this same span of time, net earnings increased some 10 million.

So perhaps you should consider such increase in earnings (10 million) warranties such a debt builtup (91 million) ?

• They also setting up new facilities in vietnam, china and indonesia and the upcoming quarter report should be in flying color again.

Here's the link to MaeMode's last quarterly reported on April 2007. Quarterly rpt on consolidated results for the financial period ended 28/2/2007. In that link, there's an attached excel file. Do have look at their notes worksheet.

Here's my screenshot. Look at their outside Malaysia performance.



A net earnings of only 658 thousand for MaeMode's business outside Malaysia as per report made recently on April 2007! How? I could be wrong but for me, such earnings is rather not too inspiring!

rgds