Mi needs to explain more transparently how it manages its cash. It's Net Cash positive. Money Market funds 199m + Cash 197m. Yet, it borrowed 22m in the quarter. Why? Why borrow 22m (presumably not interest free) when it has so much cash? The only reason is if it can earn more in cash than its borrowings, which raises eyebrows. Hoarding cash and not explaining its latest plans on the cash hoard leaves the market suspicious - the market is littered with companies that never shares its cash with shareholders for many, many years.
B7 in the quarterly report said that the private placement of RM295m was utilized 53.5% leaving another 46.5% unutilized, which includes repaying 15m borrowings, but there's a disconnect that that instead of repaying 15m borrowing, it borrowed 22m. Hmmm ... no clues.
In A9 in quarterly report, its segmental reporting somewhat unclear. For SEBU line (semi-con equipment business unit), YoY, revenues dropped from 44.6m down to 39.1m, delta of 5.5m. PBT dropped from 7.3m down to 1.3m, delta of 6m, bigger than revenue drop. Can't make sense of that reporting at all, as PBT dropped even more than revenues. Market has to assume the worse that its SEBU business must be struggling a lot.
In A13, its capital commitment is only 9m. How to make sense with B7 where the private placement says 295m, utilizing 53.5%. Does this mean MI raised a lot of monies, but have no concrete plans on how to spend it, and then borrows monies and what's the plan to arrest the huge drop in SEBU profitability? Does Management knows what it is doing?
ilyst926, that's true. 2 years ago, market valued Mi highly, including a successful private placement at much higher price than today. Those investors must be very angry looking at today's share price.
Do not pity this idiiot, keep losing money is the punishment. Lost in so many stocks still want to attack others. Shameless liar will never win in the stock market. Continue to lose until bankrupt is a good move. I wish to see the final episode.
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