stock good fatt Are you aware that instead of paying dividend for the profit they made, they use almost the whole reserve of RM85m to buy over a company with net worth of only RM600k, is it really good for the shareholders by doing this? I doubted deeply and will explore the effectiveness to report this to the MACC It is seemed like a daylight robbery and they take the minority shh for a ride. This is a very bad corporate governance they are practising.
We invested in their company based on their profit making capability but ended up being vitimised for their recent proposal. As minority shh, we should NOT condone to this and must attend the forthcoming EGM on 29/7/22 to object.
Zaaz_ri Relooking the financial statements of Evermix in details, I have found this unfavorable remarks:-
1. The sales were dropped from 199m to 161m in 2021, ie. 20% 2. Gross profit is only 12% 3. NPAT was only 2m, i.e. 1.8% (worse than FD rate) 4. The whole 60m retained earnings doesnt match with the actual net worth of the company as it has only actual cash of 20m and at the same time it has 55m debtors and 47m creditors plus the bank borrowings of 12m, virtually off set the entire asset value of the company. The real net worth seems to be the cash & bank value of 20m , plus the fixed assets of 38m (of which the valuation is a question mark).
Thus to pay 85m to buy over the company for the net worth of only 20m cash plus some Fa of 38m which in turn will only generate 2m per year, need us to say more what kind of proposal is it?
and 2m/85m is 2.35% return, and 85/2 will take 42 years to recover its capital, does it benefit the shh? (Remark on comment of 600k net worth, its my oversight and I retract it with apology)
Oh no they are not. Once the deal is locked and completed and they get their shares from the takeover deal they will have a huge bundle of Esceram shares to dispose of in open market.
Evermix will not dispose off their shares because it is below cost of 32c. They will goreng the price higher to 50cents then dispose off and make profit too.
Cost of 32 cents? What are you talking about? That is merely an obligatory figure between both parties, buyer and seller, and has no real value indicators.
Each point you have made in the last 12+ months about this stock has been totally wrong and I don't see your current offering any differently.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zaaz_ri
9 posts
Posted by zaaz_ri > 2022-07-04 22:14 | Report Abuse
Esceram main customer from China. Not US