Update on OrnaSteel

Since the steel stocks are so hot and I had blogged on a steel stock before, here's an update to Review on OrnaSteel Again

Q-Q earnings have improved a lot from its dismal fy 2007 Q4 Earnings. Rather impressive considering the company only made 14.9 million the previous quarter.

Same quarter previous comparison.

Earnings improved marginally from 22.6 million to 24 million.

However, surely some would be disappointed. For other stock leaders like Ann Joo and Southern Steel showed darn impressive earnings recently.

Balance sheet is still as impressive as ever. Total net cash balances have increased yet again.

Understanding My Investment Risks. Every stock has it minus points or risks. So does Ornasteel.

If you refer to my earlier postings, my concerns were on the marketable securities issues with Ornasteel. Yeah, I absolutely hate it when our local corporate leaders dabbles in such investments. Why can't they return the extra cash baack to the shareholders?

And in their last reported earnings on Feb 2007, Quarterly rpt on consolidated results for the financial period ended 31/12/2006

• The status of the Group’s investment in marketable securities as at the end of the reporting quarter is as follows:-
  (i) at cost: RM30.240 million;
  (ii) at carrying value: RM30.388 million; and
  (iii) at market value: RM30.388 million .

Now in yesterday earnings notes, Ornasteel has made much more investments!

• The status of the Group’s investment in marketable securities as at the end of the reporting quarter is as follows:-
  
  (i) at cost: RM56.240 million;
  (ii) at carrying value: RM56.956 million; and
  (iii) at market value: RM56.956 million

56.2 million in marketable securites???

Seriously, that's massive yes?

This is a concern yes?

Is this getting out of hand?