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Moolah
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Posting #1: Sat May 5th, 2007 01:53 |
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My Dearest Ngok Yee,
As per requested the following is Ornasteel track record.
The fy 2005 numbers are slightly distorted because Ornasteel made a change in their financial year end. Hence the Fy 2005 numbers shown above are represented by 13 months of earnings.
And the following table shows the quarterly earnings performance from OrnaSteel. The very first column, 05 Q1 earnings is muddled, it represented 4 months earnings as explained earlier.
Some views.
First the minus point.
1. As you know, OrnaSteel belongs in the highly cyclical steel industry. And as seen above, the past 2 years were rather disappointing in terms of earnings performance.
2. The company dabbles in the share market! Yuckos dude! Currently the company holds some 30.389 worth of marketable securities. According to their quarterly earnings reported on 16/8/2006. Quarterly rpt on consolidated results for the financial period ended 30/6/2006
- During the quarter under review the Group has invested RM20.240 million in AmIncome Fund and the status of this investment as at the end of the reporting quarter is as below:-
And in their last reported earnings on Feb 2007, Quarterly rpt on consolidated results for the financial period ended 31/12/2006
- The status of the Group’s investment in marketable securities as at the end of the reporting quarter is as follows:-
(i) at cost: RM30.240 million;
(ii) at carrying value: RM30.388 million; and
(iii) at market value: RM30.388 million . Ok, that quarterly earnings was up to 31st Jan 2007. AmIncome Fund manages company marketable securities. And up to Dec 2006, that Fund did not look like it performed...
The better points.
1. Although Ornasteel earnings performance was disappointing for fy 2005 and fy 2006, it held up strongly during times when demand and prices were poor. So the assumption is when the good times come, surely Ornasteel would perform much better.
2. How the company transformed itself from a net debt to a net cash company is most impressive.
3. Dividends. Last year, Ornasteel paid a 5% less tax ( First and Final Dividend ). This year, a 10% less tax had already being proposed. ( RECOMMENDATION OF A FIRST AND FINAL DIVIDEND OF 10% OR 10 SEN PER SHARE LESS 27% )
4. The market. Market till today is around 1350 points. Surely AmIncome Fund would have performed some little bitsy bit of wonder for Ornasteel's investment, right?
How?
What say you my dearest Ngok Yee?
http://whereiszemoola.blogspot.com/2007/05/ornasteel.html
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Moolah
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Posting #2: Tue May 8th, 2007 13:30 |
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Ornasteel Holdings Bhd (5094.KU) - Malaysia
1st quarter ended Mar. 31:
Figures are in Ringgit (MYR).
2007 2006
Revenue MYR327,304,000 MYR201,861,000
Pretax Profit 23,891,000 594,000
Net Profit 22,699,000 1,819,000
Earnings Per Share 6.01 Sen 0.48 Sen
Dividend Omitted Omitted |
http://whereiszemoola.blogspot.com/2007/05/review-on-ornasteel.html
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Kop
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Posting #3: Wed May 9th, 2007 04:48 |
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Some flags to consider.
Short term investments up from RM30.4m to RM40.5m.
Cash position dropped from RM52.4m to RM28.1m.
Spent RM10.1m buying other people's shares, and RM1.7m buying back own shares.
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Moolah
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Posting #4: Wed May 9th, 2007 05:30 |
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Kop wrote: Some flags to consider.
Short term investments up from RM30.4m to RM40.5m.
Cash position dropped from RM52.4m to RM28.1m.
Spent RM10.1m buying other people's shares, and RM1.7m buying back own shares.
Exactly...
the two big items that hurt the cash flow was..
1. Short term investments - 10.085 mil
2. and a capex of 7 mil
And the problem is... in a hot market... where is their result from their investment?
The status of the Group’s investment in marketable securities as at the end of the reporting quarter is as follows:-
(i) at cost: RM40.240 million;
(ii) at carrying value: RM40.474 million;
(iii) at market value: RM40.474 million .
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Kop
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Posting #5: Wed May 9th, 2007 05:32 |
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| waaa... what lalat counter could it be?
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Moolah
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Posting #6: Wed May 9th, 2007 05:35 |
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| I really like to know lah... that's rather pathetic looking investment hor.
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Kop
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Posting #7: Wed May 9th, 2007 05:39 |
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| You didn't send them UOB 100 page property report mah, otherwise they sai lang Tebrau lor. RM40 become RM100m. :D
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Moolah
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Posting #8: Thu May 10th, 2007 01:47 |
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Kop wrote: You didn't send them UOB 100 page property report mah, otherwise they sai lang Tebrau lor. RM40 become RM100m. :D
LOL!!!!
It appears that AmIncome Fund is managging their fund... shall i email them the old reports? :s3:
btw.. did a full review http://whereiszemoola.blogspot.com/2007/05/review-on-ornasteel-again.html
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Kop
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Posting #9: Thu May 10th, 2007 02:01 |
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During the quarter under review the Group has invested RM20.240 million in AmIncome Fund
Ahhh.. AmIncome Fund.
I did a check and discovered that AMInvestment runs several AmIncome funds.
One example is AmIncome Advantage. Crucially, all these funds are in either in bonds or the money market. Here's the blurb:
Objective
This Fund aims to provide steady growth from investing in money market and other fixed income instruments.
Selling Price at Initial Offer is RM1.00 per unit.
Investor Profile
Best Suited for investors who:
- want to invest excess cash for short term
- want steady return from their investments.
Strategy
The Fund will invest primarily in high-quality short to medium term fixed income instruments with minimum long term rating of AA3 by RAM and AA- by MARC or short term rating of P1 by RAM and MARC1 by MARC.
However, we may take a temporary defensive position that may be inconsistent with the Fund's principal strategy in attempting to respond to adverse market condition. The Fund may not achieve its investment objective when this temporary defensive strategy is used.
Asset Allocation: Up to 100% of the Fund will be invested in fixed income and money market instruments.
That would explain the underperformance. I wouldn't blame the fund manager in this case. But whether management's decision was the right one, it remains to be seen.
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Moolah
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Posting #10: Thu May 10th, 2007 02:06 |
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Hmm..
many thanks for the update...
I do see that it could be extremely subjective, yes?
On one hand, some might want a more aggressive approach or fund since considering that this IS A BULL market, right?
But on the other hand.. there is justification for a safer approach.
However... it still bugs ppl like ME!
Cos at the end of the day, these money belongs to the plc, hence it belongs to the minority shareholders too. Hence, returning excess cash is a preferred option for me.
:D
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