Two words... go figure.
LCL was listed 2004.
The following are links to all its Q4 earnings.
2004: Quarterly rpt on consolidated results for the financial period ended 31/3/2004 (I would discount this one - since it's too soon after listing)
2005: Quarterly rpt on consolidated results for the financial period ended 31/12/2004
2006: Quarterly rpt on consolidated results for the financial period ended 31/12/2005
2007: Quarterly rpt on consolidated results for the financial period ended 31/12/2006
2008: Quarterly rpt on consolidated results for the financial period ended 31/12/2007
2009: Quarterly rpt on consolidated results for the financial period ended 31/12/2008
Now if you add up all the profit, LCL said to make... how much did you get?
3 months ago, I wrote this: LCL Hit With 334 Million Losses!
Yesterday, LCL reported earnings. It lost another 130 million!
Its retained losses is now 490.9 million!
Which means... if one adds up all of LCL earnings since listing, LCL did NOT make a single sen!
Now consider this... in the posting, How Now For LCL?, I posted a snap shot of KN's report on LCL. Here's the link to the screen shot again: click here for screen shot.Can you see the market capital of LCL back then when LCL was trading at 5.70? LCL was worth an incredible 2.34 billion back in 2007!
Error! Many apologies!
O.o
Yeah... go figure!
Tuesday, June 01, 2010
LCL Lost Another 130 million
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6 comments:
I remember LCL being hyped by many as one of the popular well managed companies with enormous growth potential few years back. Fast forward 3 years, it became a company risking bankruptcy. If there is any lesson learned in this very good case of boom and bust, it would be not to trust 100% on research reports and bottom fishing. Research reports are written according to numbers. If the numbers are good, they write a cinderella story. If the numbers are bad, they still write a snow white story (hoping for a rebound)without placing any significant assessment on the management and business model. This is a perfect example of how a flawed business model could kill a company (LPI beware!).
Here's an older posting you might be interested in.
http://whereiszemoola.blogspot.com/2009/05/some-thoughts-on-lcl.html
JP is right. The main promoter of LCL is now promoting the flexible packaging sector; little top line growth but profit growing from nowhere. A red flag but these guys have high powered methods of justifying what great buys their golden stocks are.
JP, you are right. But, say if you are paid as one of those analysts, how would u present the report? To the liking of the Chief or write a balanced reporting for Head rolling purpose (I might called myself Morgan then...)?
I don't flaw them (they have a livings too) but there is a need for impossible balanced reporting in most of our promoters' research reports.
not 2.3b lah, it was RM234 million.
Error corrected. TQ!
:D
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