Out of all my NWC stocks, LionFIB 's most recent quarterly result bring to our attention. The company is finally writing off their longtime due amount from related parties. Well, I think this is probably the auditors advise?
If I remember correctly, amount due for more than 36 months normally required fully written down under new FRS framework. Correct me if wrong as I'm not expertise in Accounting.
But as per earlier net-net calculation, I has actually conservatively assume only 10% of all these related-party amount receivables to be collected.


Let's go to the facts and changes comparing Q3 vs Q4 2014.

LIONFIB	Q3 2014	Q4 2014
Cash	229,418.00	$211,752.00
Receivables	370,780.00	$261,142.00
Related-company owed	25,584.80	$29,277.80
Inventory	16,855.50	$9,134.00
Land	45,000.00	$45,000.00
Total Liabilities	(131,020.00)	-$174,896.00
	556,618.30	381,409.80
Cash from Operation	2.40	$1.65
Share Outstanding	231,572.00

As per guided, the company is doing impairment of some 250mil for related parties. With share outstanding of 231mil, it is immediately wipe out of near RM1 in assets! Is there no question on this corporate governance for related parties?


As conservatively calculated, I have assume 50% discount on receivables, 90% discount on the amount owing by related companies. This bring to my surprise that mostly receivables are actually related companies receivable as well! They might as well written down as bad debts.


Following back assumption we have for net-net calculation, we came to RM1.65 in net-net value.
Yet, looking at this shocking 250mil write down on receivables, I think I should be more conservative on discount on receivables. Perhaps I should assume additional discount up to 70% to 75% on receivables, by only taking 30% value or 25% value as recoverable and the rest assume bad debts owed by Related-Companies. Again my question-Why is there no question raised? No questioning from Bursa ,SC on this? Amount owed by related parties owed forever? And eventually written down??


As the time I write this, I expect market will go into some panic selling tomorrow as many bought this when Bone write his articles. In stock investment, some time we gain, some time we lose. The important point is to set some stop loss mechanism. My borderline is 15% loss.


This stock is dropping to RM1.65 in net-net value, which giving me lesser margin. And with the anticipation of panic selling, I shall cut my exposure at least half tomorrow. My target is to collect back near RM1.00