Review Of Green Packet Earnings Again

Hmm... I saw OSK report on Green Packet. (ps: I posted this last night: Oh Yeah, Green Packet Lost Less Money )

OMIGOSH!

They actually said less losses is good!

Hey, it's only 44 million.

And hey, Green Packet only lost some 275 million for the last 27 months!

Maybe the 275 million has gone to the LOST MONEY HEAVEN... never to be seen again.

From OSK...

• Green Packet’s (GP) 1QFY10 EBITDA losses were down a hefty 52.9% q-o-q to RM29.8m on lower CPE and direct costs, supported by steady ARPU. The results were within expectations, meeting 97.1% of our quarterly EBITDA forecast on robust net adds for its fledging WiMAX broadband service while ARPUs remained stable amidst the competitive environment. Maintain BUY. Its key re-rating catalysts include better earnings visibility over the next few quarters as subscriber acquisitions pick up steam on coverage expansion and as CPE sales gain traction in tandem with expanding global WiMAX deployments.

Yessir.. we are supposed to be over the moon (hey, the cow did jumped over the moon, yes?) that Green Packet losses were down a HEFTY 52.9%!!!!!!!!!!!

Praise the BOSS of Green Packet for the wonderful job.

Yeah.. give it the BUY rating too, eh?

Here's the snap shot...

Then I realise it..

Hey I got it... silly billy me...

• Important disclaimer: Green Packet is a 16.2%- owned investee company of OSK Ventures International.

But my silly mind just cannot comprehend this.

I have nothing against OSKVI owning 16.2% of Green Packet. Good for them that they think is ok that Green Packet has lost so much money for the past 27 months. However, what I cannot understand is that since OSK Research understand about the vested interest issue, why on earth does OSK Research wants to make a coverage on this stock?

So many listed stock in the KLSE, why insist on covering Green Packet and in the meantime, giving it a BUY rating?

Why la?

Meanwhile..

• “The losses are ‘technical, planned’ losses,” group managing director and chief executive officer CC Puan told a media briefing yesterday.“We are sacrificing short-term profits for long-term gains,” - source: see P1 Wimax: Honey Have You Cut It? Part II

yeah, they only sacrificed to the LOST MONEY HEAVEN a tidy small sum of 275 million so far.

Feb 2010:

• World's number 3 Wimax vendor ... "Our focus last year was on coverage rollout, while this year we will strive to be Ebitda-positive ....Only next year we are anticipating net profit after tax," - source: So What Did Green Packet Say About It's 94.5 Million Losses

EBITDA positive. LOL! It's now 2010.. and this fella wants to use the DOT come scientific term of EBITDA?

Hey, babe, taxes is real. So is depreciation and amortisation.

Today's Business Times..

I think the Boss played the tape recorder..

• "These are planned losses, as we need to invest heavily to roll out our broadband coverage. In the second quarter of 2010, we expect (Ebitda) losses to be narrower, and by the end of this year, we will break even," said group chief executive officer Puan Chan Cheong after its media briefing in Petaling Jaya yesterday. Read more: Green Packet believes worst is behind it

Break even by end of the year.

That's fair.

Hmm.. but what about all those 'planned losses'????

Right now is 275 million ringgit babe.

When will Green Packet able to make back these money?

Will it?

I dunno.