ROI on Yi-Lai

Firstly... do remember the things not to ass-u-me issue! Ass-u-ming is not only an issue of making the big ass out of u and me but it is simply hazardous to health of your piggy bank!

The majority of earnings has been reported for most stocks. Do you folks take the opportunity to review your investment (ROI)? What are the critical points that you folks are looking for? And if the company fails to meet your minimum set of requirements, what are you going to do? Are you going to forgive and forget?

Let me run the ROI on this stock called, Yi-Lai.

(LOL!...see in the stock market... it's so hard to say 'Never Say I Ass-u-me' ... for I am going to make another huge assumption here! :D )

Anyway the assumption here is one had made an investment in this tile manufacturer. (Yilai has an investment relation website here )

1. First, we need to review Yi-Lai's financial track record. (click here )

Earnings since fy 2001: 21.7 mil -> 26.8 mil -> 25.6 mil -> 29 mil

Net profit margin since fy 2001: 20%, 23%, 22%, 22%

Yi-Lai announced its 2005 Q4 earnings recently. It's unaudited net earnings showed a total fiscal 2005 net profit of 27.706 mil, with a sales revenue of 119.733 mil (click here for Yi-Lai's quarterly earnings tables from Wallstraits) giving it an unaudited net profit margin of over 23% for fiscal year 2005.

How do you rate such performance? Yes, total ytd net profit dropped from 29 mil to 27.8 mil. Is there a concern?

Its profit margins. Did it deliver or not?

Or are you worried about the slump in earnings?

How? Are we satisfied? Or am i singing Mick Jagger's classic, I can't get no Satisfaction, already?

Remember in ROI, there is no point in cheating. If we cheat, we only cheat ourselves. By giving ourselves lame, flimsy excuses to justify our own reasonings to stay invested in the stock, we are simply cheating ourselves and we are only helping the share market make a fool out of our beloved money!

( The full unaudited 4QFY2005 financial results with explanatory notes is available in .pdf file - 4QFY2005Financial Results )

ps.. me stop here first cos I had some comments that I post too much and too fast that they found it difficult to follow.. so... me stop here first... continue tomorrow.. ok?