Mae, I hope I am not WRONG!

I received some interesting comments on the posting A look at MaeMode again.

Before I start, I wrote the following:

• Back in 2004, its receivables was a mere rm67.475 million. Some 3+ years later, the receivables have blown to an incredible rm271.231 million! This is a massive warning sign, yes?

Sometimes, I do NOT like to write too direct. I see a massive issue with Maemode's receivables. In my opinion, it's an issue and I reckon that it should be a massive warning for investors of MaeMode.

If you had look at the numbers, you would note that the company's net debt position has been rising. And to compound the matter worse, the receivables ballooned in a even more alarming manner.

And in my opinion, no well managed company runs their company in such manner. You do not borrow more money, while you return do not collect your trade receivables. And this was one clear indicator seen previouslyu in Megan. (See The Receivables Issue And Megan ) .

Simple commonsense reasoning is why borrow when you should be collecting what is due to you. Yes?

And yes we all know trade receivables that could not be collected could be re-classified as doubful debts? That's a possibility, a risk.

However, in the market, the unexpected can always happen!

Although the trade receivables is a massive problem, at the end of the day it is only. Just like the possibility of it blowing up badly, there's still a chance it could always be solved. (Though I got I strong feeling that it could blow up!!!)

Why is why I ended the posting saying "I hope I am not WRONG!".

Yes, I could always be wrong.

Anyway here are the comments received.

• Double negatives can be tricky. I think you mean to say "I hope I am wrong" because "I hope I am not wrong" means "I hope I am right"! Which would be to twist the knife in the side of those who hurt from maemode investments. :)
  
• your analysis is backed by numbers. As long as your numbers are correct, you CANNOT be wrong. This company is like a time bomb. People call it TIME bomb because it is not the matter of IF, the question is WHEN will this stock takes its turn to plunge!

I hope this comments clarify my stance on MaeMode. I see a stock with decent, impressive earnings but I do not like what I see underneath. The debts bother me, the receivables scares me! And for me, as an investor, I shall call this a pass for I deemed this as a rather extremely risky investment.

And yes, I could be wrong here but missing an opportunity is never a sin to me or my money.