Posted by sense maker > 2014-06-23 21:21 | Report Abuse

Thanks for the article. Always buy net cash companies with AR turnover of not more than 45 days.

Posted by kcchongnz > 2014-06-24 04:59 | Report Abuse

This type of article on Maemode or others attracts no interest here, and not in Bursa too. This type of thing comes with negative energy, no good . So they always say.

But this type of article in fact should be read by everyone aspired to be successful in investing, especially those newbies and those who do not know much about investing. Sorry and sad to say most punters in Bursa are.

Forget about reading from investment analysis how good a stock is for the time being. Forget about all those articles here shouting which stock to buy (including mine). Concentrate on reading these type of articles from M. A. Wind, from Ze Moolah etc. Learn a bit about financial statement analysis and interpretations. You will avoid most of these type of pitfalls, like Maemode, Transmile, and many existing hot stocks now. Seriously.

What can you see the "normal" thingy here?
1) Very high growth is number one, in revenue as well as earnings too.
2) Extreme low margin at 3%
3) Growing debts
4) Growing receivables
5) No cash flows, not even in cash flow from operations, don't talk about free cash flow, which is not highlight here.
6) Extreme low return of equity, and return of invested capitals.
7) Etc

The red flags were everywhere. Why few people see them? Most can't even read simple financial statements, and don't even care about financial statements. Stock "investing" is just a piece of paper with $ sign, up or down.

Avoiding investment pitfalls is prerequisite for any success in Bursa.

Sorry ah, a bit "looso".

Posted by AyamTua > 2014-06-24 05:02 | Report Abuse

ok bro noted :-)

Posted by regnig > 2014-06-24 10:09 | Report Abuse

Good one, thanks Chong!