Yeah, I did said seriously.
Does our financial newspapers thinks we are kiddies? Or what?
Yeah, or what.
Take a look at this childish reporting: IOI's Q3 net profit increases almost 15-fold
And the main reason?
- In a statement yesterday, the diversified group said the higher profit is also attributable to unrealised translation gain on US dollar-denominated borrowings of RM231.5 million compared with a loss of RM232.4 million in the third quarter of 2009.
A forex gain of 232.4 million!!!
That's a lot of forex gain, yes?
And if you minus this out, from IOI's net earnings, how impressive is IOI's earnings????
The first thing that struck my mind was last year, I remember, IOI suffered huge losses. And everyone highlighted the issue of the forex losses, implying that the earnings is better if one excludes the losses. So how come... it doesn't work the other way around? Why shouldn't one exclude these forex gains from IOI earnings?
Well.. if one doesn't... then isn't it so clear...what the market wants to tell the investing public?
How?
See past posting (exactly a year ago) Quick Look At IOI Quarterly Earnings and IOI Earnings Results And Flashback On What Has IOI Done The Past One Year
The reason I'm still reading newspaper is because it's offered free online.Free investment advice is costly.
ReplyDeleteCari makan susah, brother.....is it you ask then I write style?? If talk abt operating profit not very sensation mah....btw, who is the reporter in this case?
ReplyDeleteIt is an one time event making things a little better than they otherwise would be. To predict earning solely coming from the fluctuation of forex will give us a rather uncertainty of company outcome
ReplyDeleteprospect in the future.
Obviously you're still a kid if you make investment decisions based on the headline and opening paragraph of a story.
ReplyDeleteThere is nothing incorrect or misleading to say that net profit is up 15 times if it's up 15 times, especially since the disclaimer is added in the following paragraph.
As a savvy investor, read the whole story before arriving at a decision rather than scan the headlines.
If you think writing for a newspaper means that you can colour the lead with "exciting" news for investors, then you have a terribly skewed idea of what a journalist does.
It's not like the Pelican Brief.
Johannes: Quote: Obviously you're still a kid if you make investment decisions based on the headline and opening paragraph of a story.
ReplyDelete=> Well for what purpose does such a headline serve?
Quote: There is nothing incorrect or misleading to say that net profit is up 15 times if it's up 15 times, especially since the disclaimer is added in the following paragraph.
=> Hey, did this blog posting such the article was incorrect? Misleading? You might not think it is not misleading. Some reckon it is.
Quote: As a savvy investor, read the whole story before arriving at a decision rather than scan the headlines.
=> Sad point is, how many are savy investors? Does such an article help the many who are not savy?
the article is misleading - full stop. yes not only the headline but the article itself has no value - not analytical at all. whether it is free or otherwise makes no difference
ReplyDelete