MTouche: Talk Is Simply So Cheap, yes?

Talk is always cheap because supply always exceeds demand!

Tell me if there is no truth in that statement.

Posted last year: Update On MTouche

Let me repeat what was posted in that posting.

Made the following two blog postings on Mtouche back in February 2008, MTouche and MTouche Reports Its Quarterly Earnings!

What we had was a stock whose stock price was falling off the cliff and the management came out in the press defending it's poor 2007 performance.

First artice was published on Star Biz on Feb 9th 2008, After a tough year and another article was featured on the Edge a couple of days later on Feb 11th 2008, 11 Feb 2008: Corporate: Worst is over, says mTouche

Some of the points mentioned by the boss then was:

• In defence of 2007
  
  No doubt, 2007 was a challenging year for the company. Up to the nine months to September 2007, the company recorded net profit of RM5.4mil.
  
  As indicated in its announcement to Bursa Malaysia, the poor results were largely due to higher expenses from its new subsidiaries, provision of doubtful debts and higher depreciation and amortisation of intellectual property.

and

• Yet, business-wise, Goh, who is also the CEO, describes 2007 as a "bad" and "difficult" year. That's no surprise. For one, it has yet to convince Japanese mobile phone companies to buy M-Bit. The same could be said of the company's stock price. From an all-time high of RM4.18 on Nov 15, 2006, investors sold down mTouche's shares to as little as 47 sen late last month, after earnings disappointed most of last year. Its recent rights issue was about 9% undersubscribed despite attracting excessive applications. It remains to be seen if 4Q2007 numbers — tentatively slated for release on Feb 15 — will be any different. Last Monday, the shares closed at 58 sen.
  
  "Last year was a bad year. Some acquisitions did not do as well as expected and I think we were also punished for over-expanding… We streamlined operations last year, took in new people, got rid of unhealthy parts that are not strategic to our growth going forward," Goh says.

Last night, MTouche posted losses totalling 36 million! ( see temp link on Bursa website: Quarterly rpt on consolidated results for the financial period ended 31/12/2008 )

Well what happened again?

What happened to the promises made last February? What happened to Worst is over, says mTouche ?

And this is what the company has to say..

For the financial quarter ended 31 December 2008, the Group recorded a LBT of
approximately of RM36.2 million as compared to PBT of RM0.3 million from the previous quarter. The LBT for the current quarter is due to the expenses as detailed below which affected the overall results of the Group:

v) provisions for impairment of intangible assets and goodwill amounting to approximately RM18.2 million;
vi) provisions for impairment of investments amounting to approximately RM5.6 million;
vii) provisions of doubtful debts amounting to approximately RM2.4 million made in compliance with the Group’s accounting policy and
viii) share of loss from its associate company namely GMO Limited of approximately RM6.3 million.