still very extremely high share price coz many believe rescue is coming.
its always cheaper to start another Pharma company from scratch. why pay those creditors and bankers RM552 million? you think RM552 million grows on trees?
or put gun to their silly creditor/bank head and say I pay only 1 sen for RM1.00 so pay RM5.5 million. Creditor & Banks are silly to trust this company rite? so deserve only 1 sen
Another victim of vaccine euphoria. Rm500 mil vaccines sitting in warehouse with no one to vaccinate. Soon expired n headed to waste landfill. Rm500 mil up in smoke. Share price will languish as penny stock for a few years.
The management should provide better guidance/prospects that are reality-based AND with warnings. But they didn’t give any prior warning/caution, they stated they were happy with Indonesia business AND that they think that remainder of 2022 should be good (based on guidance report in 30/9 quarterly). Gosh.
Look at the massive swing between the last two quarterlies :
- A warning sign debuted for the period ended 30/9 with drastic reduction in profits but a dividend was announced, no doubt to appease their majority shareholders. Their cash position is meh; not big, not small, cashflow ok but has substantial borrowings
- Reserves/retained earning for the period ended 30/9 stood at more than RM250M which then swung to a negative over RM400M (which resulted in huge drop in equity; the main reason for PN17)
- Inventories for the periods ended 30/9 and 31/12 drastically reduced (which resulted in big drop in assets)
They need to show transparency in their quarterlies. No beating around the bush and inform shareholders of what can happen in the near future
This is a mess of their own making. Hopefully they weren’t “cajoled” into furnishing “encouraging” quarterly reports; that would be insidious and downright criminal. Management has to front up.
Its only provision for impairment. Accounting play. Biggest order was from govt. Govt owes Pharma. Check their receivables. The prices for the vaccines were jacked up under the Muhyddin administration 600bil extra emergency budget. Besides this provision, everything remained pretty much unchanged. So, on the books, thats how vaccine corruption money gets accounted for under impairment. Cut the drama! Audit the vaccine price from the beginning, and you ll see how much Pharma actually made.
@tom2629, yes and no. Provision for impairment is a MFRS. They were profitable BEFORE Covid and the vax. The question is why the management did what they did
Not sure about whether you meant Govt owes Pharma or Govt owns Pharma…
If you had followed the vaccine drama of Pharma from the onset, you would know that they had over-ordered and intended to serve as follow up booster shots or to be sold to Private clinic for profits. Towards the end, Govt had some "Free" vaccines and didn't accept the excess store by Pharma.
Pharma had thought that these vaccines were difficult to obtain since at the start Pfizer didn't agree to low prices, which were snapped up by Singapore at high cost and free shots for their citizens.
Pharma was already in a lurch even before the vaccines expired and "begged" some other Asian countries to buy them off their hands. Only a tiny figure and amount was taken by Myanmar but Pharma made a big blow at the Press to say they had a tie-up for millions of shots to be sold there.........blew themselves to pieces.....
The writing was already on the wall in their previous QR when Revenue was in billions but their profit margin was only a few millions...........which they claimed the bulk was under Receivables, yet to bill MOH.
The Death of Pharma would see the rise of Duopharma, conservative yet profitable and moving ahead in more medical co-operations with Indian partner (world's largest Pharmaceutical and drugs suppliers)
Axe cap traded Pharma back in 2019 from 1.60 to their LU at 7.20, before dropping to 5.25 for Bonus (actually share splits) and we calculated to the precise cum price,... months before ex-price.
We warned many of the "wayang" but some "intelligent" people thought of themselves as high beings and held on this the bomb went off...
One special pipe piper was ChowWei....bought and collected all the way from above 80c and averaging down to 55c.......good for you!
For whatever it's worth, MOH and later under KJ did kept their part of the Order and taken the exact amount of vaccine ordered + some more.
Pharma themselves committed to so much more than they could chew.\
What's surprising was that the 2 local Banks granted Financial assistance in their payment for the vaccines close to the tune of RM 1 Billion.......Now, we are wondering why didn't the Bank secure the loans on back-to-back against MOH's payment but provided the figure over and above? Is Pharma's parent Company Boustead the Guarantor???
Surely, an Audit in the Procurement and Payment schedule would reveal more than meets the eyes.
Dun understand.......Regularisation plans to repay debts within 6 months and avoid legal tussle? Or to make a come back up to above 80c.....? Please be more precise.......otherwise.....the wait and see is a comment from a bystander.
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....
vitac
518 posts
Posted by vitac > 2023-02-28 13:32 | Report Abuse
Totally agreed, monopoly biz, spoonfeeded, still can do until the company upside down....