Update On Hai-O

Posted last June: Hai-O Warns Of Challenging Next Year

Made the following remarks then:

Company itself said 'next financial year will be challenging because of the slowing down in sales activities in the MLM division'.

Ok, as it is, on a y-y comparison, everything is still rosy as its earnings is 70.9 million. Last year it was 52.3 million.

However, since the company is warning of a challenging next year, perhaps its best for one to look at the sales/earnings numbers on a q-q basis.

Here is the most recent 4 quarters.

How?

Is the slowdown apparent?

On Sep 29, I made another posting Quick Update On Hai-O Earnings

Last night Hai-O reported its earnings.

Trailing earnings shows earnings of 35 million but based on recent earnings one would not be too shocked to see earnings at around 25-26 million for fy 2011.

What's the best way to put this ttm into perspective? Won't a simple comparison versus what Hai-O had done over the recent few years be useful?

Hai-O had an incredible run. Last fiscal year 2010, it recorded some 70 million in earnings, which was extremely impressive given that it's fy 2009 earnings of 52.290 million (It's fy 2009 earnings was itself impressive, yes?)

However, the current TTM (trailing twelve month) numbers looks shockingly poor at 35.393 million and as mentioned earlier, based on recent quarterly earnings one would not be too shocked to see earnings at around 25-26 million for fy 2011.

Clearly that the great growth story of its MLM business model is simply not sustainable. Yup, some high growth story cannot last forever and ever.