Here's OSK IPO coverage of K-Star.
The right stuff was mentioned!
The so-called growth story and for K-Star, it's the double digit growth.
The low PE valuations.
And how do they play the LOW PE VALUATIONS again?
Easy!
As can be seen in the earnings estimate above, OSK estimated a net profit of 52 million for K-star.
Remember... the whole pricing... the whole fair valued is based on the assumption that K-Star earnings should be around 52 million, give or take a couple of million here and there.
Now K-Star reported its earnings on the 20th August 2010.
It was K-Star 2nd quarter earnings and K-Star only managed to make 5.94 million, giving it a half year earnings of only 16.467 million. ( see K-Star posts lower 2Q net profit at RM5.94m )
At this rate, K-Star earnings should only be about some 30 million, give or take a couple of million here or there.
And OSK's fair value was based on the assumption K-Star should earn 52 million.
*roll eyes*
According to that OSK report, K-Star raised some 32.9 million for its IPO and K-Star was listed on the 4th June (postponed from 31 May 2010).
It's now 24 Aug 2010 and on today's Star Biz, there was an article on K-Star: K-Star looks to raise funds
- It is looking at options such as rights issue, share placement and even a dual listing in Taiwan
K-Star wants to raise funds???????????????????????
Errr.... is the Malaysian investing public an atm machine?
Glee!
Full credit goes to our SC n Bursa for their misguided policies. Again, I reiterate that these so-called 'custodians' of our financial markets are having a direct hand in ripping off the Malaysian public, helping foreigners siphon off our hard earned cash. Any retribution from our elected officials? Methinks not...This is macro bad-management period.
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