Regarding Salcon

In reference to the following posting: http://sahamas.net/forum10/5619-2.html

My past postings on Salcon were based on how misleading the local press was on the stock.

My very first posting on Salcon was exactly some four years ago! Salcon.

Let me repaste what I wrote.. (the Star link is broken! :( )

• .. and today.. there's a huge write-up on Star Bizweek: China boost for Salcon , which was written by me favourite creative write, Jose Barrock.Correct me if i am wrong here cause i am seeing a trend developing here. Want a nice juciy article written in a 'creative manner', just call Jose!
  
  Sigh. Isn't it utterly disgusting? No?
  
  Take a look: (snippet of the creative writing in dark blue italic)
  
  For the first six months of its financial year, Salcon posted a net profit of RM570,000 on the back of RM112.6mil sales. The company’s earnings per share during the period was 30 sen, while its net tangible asset per share stood at 52 sen.
  
  EPS of 30 sen????!!!!???
  
  See how badly the fact is twisted? An error of intent? Or was it a mere printing/typo error?
  
  If this was a printing/typo error, how come such error occurs so frequently?
  
  And i like this part...
  
  “At present, Salcon is for investors with an appetite for slightly longer-term gains. The fund managers are not sure when the sector will pick up, so they are scared to take positions, I can understand that ... There is a lot of opportunity here, we have the right contacts and have forged some strong relationships here. Just like when we started out, it was difficult. It is all part and parcel of business. So far we have done well,” he says.
  
  See how creatively written?
  
  Here's my simple question: How can an investor trust that you will deliver when you have utterly failed to deliver what you promised to them ipo investors? Another case of talk is cheap?
  
  At its close of 45.5 sen on Thursday, Salcon is trading at a price earnings ratio of some 9.4 times. The company’s price to net tangible asset per share is at an attractive 0.9 times, which is well below that of its peers, Puncak Niaga Holdings Bhd and Taliworks Corp Bhd.
  
  A PE ratio of 9.4 times?
  
  LOL!!!.... yet another badly twisted fact. EPS is only 0.3 sen lor and not 30 sen. So how to get a PE ratio of 9.4 times? LOL!!!
  
  Isn't it utterly disgusting that we have such blatant shenanigans going on in our daily financial news?

My last posting on Salcon WAS on 25th Oct 2007: Salcon.

My issue was simple. I was bemused by the attempt by Salcon to venture into the insurance business and what I found so interesting was the fact that despite tendering for so many projects (it was said back in 2007, that Salcon had tendered some 7.5 BILLION worth of projects) and that Salcon had a 650 million order book, Salcon simply wasn't performing. Its last reported earnings (07 Q2) then, showed only a paltry earnings of 330k only.

And I was shocked at how the local press decided to highlight the fact Salcon made some 5 million the previous fiscal year, IGNORING the fact that half year profits from Salcon was only a paltry 330k only. Yeah, why wasn't this fact mentioned in the press.

This was the earnings report I was looking at: Quarterly rpt on consolidated results for the financial period ended 30/6/2007

This was the balance sheet I was looking at back then.

And this were the earnings I was looking at.

............. earnings
07 Q2..... 0.030
07 Q1..... 0.274
06 Q4..... 4.816
06 Q3..... -0.672
06 Q2..... 0.024
06 Q1..... 0.164
05 Q4..... -28.112

As can be seen it was not a happening performance from Salcon.

Anyway, as mentioned before, some would argue that it is not healthy just looking at the past. The future is just as important and as Salcon had some order book worth 650 million and bidding for billions of contract and surely based on future expected earnings, then perhaps there are justifications to be optimistic for Salcon.

Which is why this posting.

I have to give credit where credit is due.

LOL!

Else, I be accused to be a mind less open.

Here is the trailing twelve months earnings.

..............Sales...... net profit
09 Q2.....111.649 -- 6.410
09 Q1..... 79.763 - - 3.247
08 Q4..... 81.039 - - 1.453
08 Q3..... 64.537 - - 1.853

And here is the snap shot of the balance sheet.

Now in the earlier balance sheet at 07 Q2, Salacon had cash balances of 122.127 million and total loans of 104.322 million. (net cash of 17.805 million)

The latest, Salcon cash balance of 211.023 million and total loans of 165.264 million. (net cash of 45.759 million) Receivables had soared to 202.829 million versus 76.026 million. (Yes, the high receivables are a huge issue. The receivables did show slight improvement because the previous year, Salcon's receivables were at 236.138 million.)

And here is how the stock is doing.

ps: This ain't no tipsy! If you want to get tipsy, a bottle of whisky in the morning will do nicely! It's a mere acknowledgement that Salcon's water projects have started bringing in money and that Salcon's water projects aren't all gloom and doom as I had mentioned back in 2007. And I CERTAINLY have no idea if you could lose money in this stock. Yeah man! I really do not know if you can lose money, so this one my disclaimer. Folks simply love to ass-u-me. oO