Pintaras Jaya IV

Previously blogged on Pintaras Jaya: Pintaras Jaya , Pintaras Jaya II and Pintaras Jaya III

Pintaras reported its earnings last night. It was rather poor.

Net earnings only came in at 1.963 million. It's previous quarter in May 2008, Pintaras made 7.621 million (see Pintaras Jaya III )

Yes this company cash balances is extremely healthy but earnings does matter. I could flawed but net earnings plunging to just 1.963 million per quarter is a massive concern for me.

So is their dabbling with market securities. I do not like it at all.

Here's my opinion on this issue again. Let paste what I had said before.

• I have always disliked seeing our local companies dabbling in the stock market and one of the most disturbing issue is that there is ZERO transparency. The companies do not let their shareholder knows the details of their so-called investment. For example, we do NOT even know what share they buy, at what price was the investment made and most important, why.

Let's have a look at what Pintaras said in its earnings notes and see if my concerns and issues are justifiable or not.

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20. Marketable Securities

(a) Total purchases and disposals of marketable securities for the current financial year-to-date are as follows: -

Total Purchases 28.789 million
Total Disposals 29.099 million
Total Gain on Disposal 2.543 million

(b) Total investments in marketable securities as at 30 June 2008 are as follows:-

At cost 27,200
At carrying value/book value; and 24,709
At market value 25,921