Thursday, November 20, 2008

Maybulk Had 'Investment' Losses Of Over 62 Million!

I had posted some postings on companies dabbling in the share market. ( see Regarding CSC Steel'sCurrent Earnings And Its Investments In Marketable Securities, Apollo Food's'Investments' In The Share Market and Listed Companies Investments: Yung Kong Galvanised Steel )

From last night announcement, we have a whopper in Maybulk's earnings.

And this one was not easily detected for one has to scrutinise the company's earnings notes to see the big stinking whopper!





And to be honest, I missed it myself too and I was not aware of it till I read OSK comments on Maybulk!
  • Below expectation. MBC’s annualised 9M core net profits (excluding RM303m gains from sale of 2 bulkers and 1 tanker YTD) were 38% below our expectations and 42% below consensus. The poor results were partly due to RM32.3m in unrealised losses in investments, RM23.1m in forex losses and high MI, which we believe was due to a high number of third party in-charters done through subsidiaries. Its balance sheet remains strong, with net cash per share now at RM1.06. NTA per share also rose to RM1.84.


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7 comments:

  1. Avatar3:33 PM

    Thanks for highlighting this. Still, even if it's unrealized, I thought Malaysian GAAP requires this to be booked to the Income Statement?

    ReplyDelete
  2. Moolah5:42 PM

    Dear Avatar,

    My concern is simple.

    Why are our local CEOs dabbling so much money into such investments?

    And for Maybulk's case, what on earth did they invest in???

    Do all of them think they are a 'Warren Buffett'?

    Sigh!

    ReplyDelete
  3. Avatar6:03 PM

    Dear Moola,

    Whilst I agree with you, it's beyond our control. The shareholders [esp. minority] should be the one requesting for transparency on this matter.

    Unless Bursa or SC comes up with a ruling on this, there's nothing further that can be done.

    Rgds

    ReplyDelete
  4. Moolah6:49 PM

    Avatar,

    There is ONE thing the minority shareholder can do and this to VOTE with their feet!

    :)

    ReplyDelete
  5. Avatar8:04 PM

    Dear Moola,

    Unfortunately, [I presume] you are one of the few minority shareholders that is savvy enough to do so. Most of us would prefer to either keep quiet or sell the shares of the company and cease being shareholders. Still, things are improving bit by bit and you are contributing to it. I doubt we would see such news in our daily business section in the Star or NST.

    IMHO, speaking from experience, the buffet spread seemed to be the most important thing on minority shareholders mind at some of the AGMs I attended. Talk about the rat race... It was fun seeing the aunties/uncles grab all the food in sight. Some even brought big plastic bags to grab the salads... What a riot!

    Rgds

    ReplyDelete
  6. Moolah8:25 PM

    Avatar,

    Remember the bottom line is that whenever we buy a shares, its our money!

    And if it's our money and we do not like or we do not understand what the company is attempting to do, what do you think is the most logical thing to do?

    I would sell man!

    For the alternative would be I remain a shareholder in a company where the management treats my investment as not a shareholder but an OPM (other ppl's money) token!!!

    ReplyDelete
  7. Avatar8:36 PM

    Dear Moola,

    Yes, I would sell as well. Unfortunately, that doesn't do much to improve corporate governance in this country. Hopefully, the MSWG can do more in M'sia.

    The more worrying situations are those like Transmile where everything looks good on the outside but....

    Rgds

    ReplyDelete