For example, in the posting on Monday: What Kind Of Growth Story Is Green Packet Talking About?, we had an incident where Green Packet's CEO gave public assurance that Green Packet is growing.
Now, for the investor, who does a bit of homework, that growth issue mentioned is rather confusing for the recent earnings notes posted on Bursa website showed that this was a company whose earnings were declining or rather losses were growing!
But yet, the CEO insist otherwise.
Surely growth in revenue counts for nothing if the company can not generate the profits, right?
May 23rd 2009, Update On Green Packet As Its Losses Increased More Than Sevenfold
- GREEN Packet Bhd (0082), a company that develops telecommunication solutions and offers wireless broadband services, said its first-quarter net loss widened more than sevenfold despite higher revenue, due to the cost of rolling out its wireless broadband services.
Net loss for the first quarter ended March 31 2009 rose to RM22.22 million from a loss of RM2.7 million a year ago. However, revenue almost doubled to RM41.5 million, aided by its growing solutions and broadband services.
Today, Green Packet announced its earnings.
What would you expect?
Growth in earnings?
Sorry to disappoint but GPacket did not lose 22.22 million. Instead it lost some 27.9 million!
Yup, the growth in losses has continued!
Yup growth in losses!
Hi,
ReplyDeleteI like your comments and views on most of the articles. Very refreshing and unbias, playing devil's advoctes. Could you please comment on Salcon as a company? any flaws in the company's balance sheeet?
Cheers,
FHIS
Your comments really sulks.
ReplyDeleteFirstly, no CEO will paint a bleak picture about their own company, esp small companies, even it is true.
Secondly, as an expert analyst, you shud know that such infra company need billion to expand in the next few years. This G Packet is not only incurred losses this quarter but is likely to incur lossses next 1 to 2 years.
You should look at CIMB's report on Top Hose (Well Call). Irrational exuberance.
ReplyDeletelol.. you could have easily said that my comments sucks. It would sound better and of course it should make you feel better too.
ReplyDelete1. Of course, no CEO will want to talk bad about their company.
But what are we talking here?
CEO said that the company is growing but instead the earnings shows that it's the losses that is growing.
Is this acceptable?
If you say it is, who am I to argue for it's your right of opinion.
But is it ok for you that I do not find GPacket's CEO comments to be acceptable?
2. lol. If I could, could I humbly suggest for you read my blog more often. I have always reminded everyone that my comments are flawed and I have never considered myself to be an expert.
So what's your point?
And if you had been reading my blog, do check out the posting on ytl-e. http://whereiszemoola.blogspot.com/2009/04/comments-on-ytls-rm3-billion-broadband.html
Am I not aware of the massive capital required in this technology?
Am I not aware of companies like Nokia less than optimistic view on Wimax's prospects?
Am I not aware of how market leader such as Clearwire is doing now?
Am I not aware that despite the massive millions required in this Wimax business, the return is yet to be justified?
Am I not aware that of course I could be wrong? Of course I am.
ps: some folks (like me) find it rather amusing to have four companies vying for the Wimax business in Malaysia. Isn't the pond to small? And what about the Wimax operators having to compete with other technology? Does this sound like a sure-win business?