I just flipped to my morning copy of the Star Biz. The main article was Window for TM to exit Measat
The first line under the header said "Telekom Malaysia Bhd (TM) stands to book a one-off profit of around RM100mil if it chooses to part with its 15% stake in satellite service provider Measat Global Bhd, analysts said"
I fell of my chair laughing my ass off!
Let's see, what's the fact again? Hmm... the fact is Telekom Malaysia cost of investment in Measat Global was 250 million in 2003. Measat Global's privatisation offer is a stinking 252 million!
I wonder what spin this so called analysts have to create this rm100 million profit from?!!!
I started whistling to the tune of "Making money out of nothing at all"
:P
- Telco stands to gain RM100mil from 15% stake sale
KUALA LUMPUR: Telekom Malaysia Bhd (TM) stands to book a one-off profit of around RM100mil if it chooses to part with its 15% stake in satellite service provider Measat Global Bhd, analysts said.
This was based on estimates that TM had written down its investment in Measat to around RM2.50 per share since 2003. TM owns about 60 million shares in Measat.
Measat’s major shareholders have announced plans to take the company private at a price of RM4.20 per share. If TM sells its Measat stake, it would gain a gross figure of RM252mil. Compared with the written-down price of RM2.50 per share, or RM150mil, this gives a gain of over RM100mil....
Huhu!
ROFLMAO!!!!!!!!!!!!!!!!!!!!
So apparently TM wrote off their investment. From rm 250 million to just rm 150 million!!!!!!!
LOL!!
LOL!!!!
LOL!!! LOL!!! LOL!!!!
What a wonderful world this is!!!
Now my friends, this is how the analysts made 100 Million out of nothing at all!!
Huhu!
So TM paid 250 million for their investment. If they sell their investment for 252 million, they will make 100 million!!!!!!!!
World champion la!
LOL!
I guess this gives Telekom Malaysia the special 'pass' to sell their investment in Measat Global!
And my friends... life is simply good or what!
ps: the last time Business Time said "Telekom Malaysia Bhd, which held a 15.4 per cent stake as at April 26 this year, stands to reap a tidy RM252 million if it accepts the offer". ( See posting How Telekom Malaysia Stands To Reap A Tidy RM252 million If It Accepts Measat Global Offer? )
ps: don't you get the feeling that our financial press are trying very hard to get Telekom Malaysia to sell its stake in Measat? Poor TM!
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19 comments:
This borders on the criminal.
If the money was theirs, would they say they made 100 million??
They made money 'accounting-wise'. Net, net, cash-wise, they lost money.
Spin.
LOL!
In short, they made money out of nothing at all.
:P
LOL, 100 million in Monopoly money maybe????! It begs the question "How much does the analyst get paid for this brilliant piece of analytical crap and who is paying?"
good.
nick: I wonder if these analysts thinks we are stooooooooopid or what!
Damn, I am fooled by the analyst!!!
AhYap: You see, according to the analyts the money that Telekom Malaysia had written off in their investment cost, the money died and went to money heaven.
Now these money are back... as profits!
See? I am a bigger fool!
This is the beauty of accounting. Profit is very subjective in certain time. It depends highly on the integrity of company management.
Yeah, the beauty of accounting given a nice spin by the media and so called analysts.
Assuming you are Telekom Malaysia in this situation, do you actually feel you have made 100 million?
:)
I would say...finally i have recovered the investment written off previously. What a relieve! It almost like recovering of long outstanding provision for bad debt....haha!
LOL!
Looks like in my next life... i shall crawl and beg 100 million miles... just to be an accountant!
:D
Hi, I'm thinking whether I should continue to buy The Edge, as I got more and more exposures that lead me to lose confidence about its professionalism and doubt the motive of the person(s) behind it. Pls advise, thank you!
Ah Kong: You are asking me if you should buy newspaper or not?
wow!
Yup. Sorry for the mistake of one missing word. Haha, I just realized that it made the meaning totally different from what I wanted to ask. Pai sei.
Kong: LOL! LOL!
Don't worry about it.
Life is too stressful at times!
We need to ...... LOL more!
:D
LOL! Hahaha, I guess I got your point. Thank you!
Must make most out of this so called
experts by using them as a very profitable contrarian indicators instead. At least this is a win-win
benefit 4 both parties !!!!
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