A Deeper Look At Kenmark Losses

Last night I wrote Kenmark Suffers 146 Million In Losses!. It was rather lacking, so I decided to make a better posting on it.

Firstly let me dig up some recent earnings...

Feb 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009
2009 Q3
Sales 101.441 million Net Profit 4.769 million Receivables 248.662 Million Cash 2.210 million Total borrowings 142.203 million.

(Moolah: Comparisons are made versus the previous quarter. Sales. Sales for the quarter was incredible. Over 101.441 million. Last quarter 35.334 million only. What happened? Why the sudden surge?)

Nov 2009: Quarterly rpt on consolidated results for the financial period ended 30/9/2009
2009 Q2
Sales 35.334 million Net Profit 3.718 million Receivables 225.317 Million Cash 2.298 million Total borrowings 143.354 million.

Aug 2009: Quarterly rpt on consolidated results for the financial period ended 30/6/2009
2009 Q1
Sales 57.686 million Net Profit 1.013 million Receivables 207.584 Million Cash 2.202 million Total borrowings 144.463 million.

(Moolah: Comparisons are made versus the previous quarter.Look at how the receivables 'suddenly jumped' to 207.584 million. Last quarter, receivables were 'only' 163.773 million. And the fact the next quarter the receivables jumped again to 225.317 million! What on earth is happening??? Compare the receivables to the sales revenue! Unreal isn't it? 2009 Q1 Kenmark had sales revenue of 57.686 million, yet it carried receivables of 207.584 million!!!! Insanity! How on earth can any company run a business in such a fashion? A cash balance of only 2.2 million and total debts of 144.463 million? Was there any way possible such a business could survive???? And from an investor perspective (and mentioned before in the posting, More Incredible News Flow From Kenmark! , quote: "Perhaps it was grossly over priced at 90 sen given the state of its business fundamentals, in which its poor balance sheet was clearly visible!")

May 2009: Quarterly rpt on consolidated results for the financial period ended 31/3/2009
2008 Q4
Sales 38.775 million Net LOSS 0.084 million Receivables 163.773 Million Cash 2.222 million Total borrowings 144.574 million.

And the following was from last night:

Last night, June 2010:
2009 Q4
Sales 18.762 million Net LOSS: 146.552 million Receivables 152.339 Million Cash 0.440 million Total borrowings 139.043 million.

Sales suddenly plummet to only 18.762 million!!!!
Cash is clearly gone.
Massive provision of doubtful debts is made resulting the company losing 146.552 million.
So massive that the company declined to state EXACTLY how much bad debts was written off!
And the debts of 139 million looks incredibly massive when the company has almost no money!

ps: when receivables keep ballooning like in Kenmark's case, these receivables sooner rather than later will need to be revised as bad debts!

And we have the incredible news of the boss - 'runaway', 'sick', 'unconscious'.....and best of all, a helping hand from an old friend who decided to purchases tons and tons of shares BEFORE he got the call for help! (I wonder if the call was made in a conscious or unconscious state?) ( see More Incredible News Flow From Kenmark!)

And to cap it all... they claim it's now a kidnap case!


Seriously... who does the company think we are?

Ah Beng or Ah Lian?

Oh yeah.. the helping friend... he was so fortunate to buy container loads of the stock on the 1st and 2nd June.

Do compare the prices then and today (27 sen).

And if Kenmark share goes any much higher, this helping friend, sure is well paid for helping out eh?

And of course the jealous guys or the sour cows (LOL!) would accuse... 'plunge the stocks on bad news, grab as much as possible when the shares are almost worthless and the push it up, up and away!'

LOL! They are only jealous!

But seriously.... do you blame them for being jealous?!


( see Theory On Kenmark's Soaring Trade Receivables And Massive Provision Of Bad Debts also)