What's The Potential Of Coveright Surfaces To Analabs Resources?

Received the following comments from grahamsmun in the posting: Update On Analabs Earnings

• Coveright is a superb buy !
  An investment of Rm 32m giving a return in investment of Rm 11m a return of 34% p.a.
  We hard the find such buy giving such a good return.
  On top of this analabs still got Rm 9m cash and Rm 12m of securities with no borrowings !
  Tribute should be given to Analab's management increasing dividend to Rm 0.05 tax exempt also !

Grahamsmun, long time!

Ok, let me say this without twisting and turning. Yes, Coveright Surfaces, and the resin impregnated business does have its potential. No doubt.

However, I reckon I deserve the right to pass judgement because it is still way too early to pass judgement.

But if you would indulge in me, let me share why...

Now Analabs acquisition of Coveright Surfaces is described in this pdf file posted on Bursa website.

Now one of the obvious way to gauge an investment is obviously the return of investment. Yeah, this type of stuff, no need to say for it's common sense. :D

Anyway, what I was interested in is the financial track record of Coveright Surfaces.

Here's my comments on those numbers.

1. It's always about profitability. No profits for Coveright means most likely this would be a poor return of investment for Analabs Resources.

Look at the numbers. The last two fiscal year, 2007 and fy 2008, the earnings are DECLINING, yes?

2. The net assets. Compare 2004 and fy 2008. Why the decline?

I then put these numbers into my worksheet.

What do I see? I see declining profit margins!

Am I impressed? Are you?

Now Coveright have only contributed 3 quarterly earnings to Analabs results. Taking the numbers from the segmental results, I have compiled it and placed it right below. This way we can see Coveright performance before and after.

Oh.. Coveright 2009 numbers... missing. :( :(

Yeah.. don't ask me... I cannot seem to find it.

Here's my flawed interpretation.

1. It's like I am looking at two different companies. The one in yellow was less profitable. (Ok, we are missing 2009 numbers). The one in yellow was Coveright performance before it was acquired by Analabs.

Ok.. perhaps I am being overly cautious and there could be a logical reason why the business economics had changed for the better. For example, a better selling price for their products could be a reasoning. ( Now if I am seriously an interested investor, I reckon it would not hurt me to find out more. LOL! Yes.. get out of my lazy chair, move it move it! Stop staring at Shakira and her Wakaka! friends kicking and diving and play acting while chasing one round ball! :P )

2. Q4 numbers (ie Coveright earnings) dropped substantially versus Q3. Sales dropped. Earnings and its margins also slumped. Why?

And this is where it's tricky.

Is it seasonal? Is it a temporary factor?

Me?

I stick to the easiest solution. LOL! LOL! Which is to say 'its way too early to pass judgement!! :P

But of course... for the really, really, really cynical bugger... the bugger would be thrashing out the conspiracy theories and indicates the extreme goodness of the numbers.

ROFLMAO!

Yes, the numbers were too good to be true. :P

What do we have? 11.054 million profit from a sales revenue of 69.827 million was contributed to Analabs earnings this fiscal year.

And how much did Analabs paid for it? 32 million!

Of course, it's indeed a superb buy!

But then the really, really, really cynical bugger would be asking is the owner of Coveright Surfaces silly or what? :P

Yes... if the company does make 11 million from a sales revenue of 70 million, or a profit margin of 15%, why on earth did the owner sold this business for a mere 32 million???? Something smelly?

LOL!

And needless to say, if it's indeed so good, why should Analabs minorities complain? They be rather silly if they did, yes?

How?

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Chicharito wows English press; Valencia move unlikely

Guadalajara's soccer golden boy Javier 'Chicharito' Hernandez was one of the bright lights of Mexico's World Cup campaign. At the time of writing he has 65% of the vote for being Mexico's best player in South Africa on this blog.

Although he only started one game out of four, the 22-year-old scored two goals and has excited the English press and media on the eve of his big move to Manchester United.

“It’s been unanimous praise, people are starting to think United have a real player on their hands," says manutd.com Contributing Editor Steve Bartram. "They were raving about the goal (against France). He was calm when he went through, showed neat touch and intelligence in the run.”

The feeling is that Chicharito’s excellent forward runs will benefit greatly from having players like Scholes, Giggs, Carrick and Rooney to supply the young Mexican with all the ammunition he needs to get goals.

However, the Mexican press has been full of reports linking the 22-year-old former Guadalajara Chivas player with a loan move away from Old Trafford due to the plethora of young strikers at the Manchester club. Today's front-page headline in Record states Valencia are hot on Chicharito's heels.

“I would personally be amazed,” says the journalist who was writing a blog on the English team’s website about Chicharito and the Mexican national team. “Especially with how he’s played for Mexico.”

“It’s not how United do things,” adds Bartram. “Even if he comes to United as an impact substitute, it’s what United need.”

Bartram also says new young players at Manchester United are always given a chance in the first team to impress manager Sir Alex Ferguson.

“I fully expect him to be here next season,” says Bartram firmly.

The Manchester United reporter adds that the British press is mystified Chicharito wasn’t starting games for Mexico.

Says Bartram: “Obviously Franco has been fairly ineffectual, the team selection against Uruguay seemed strange.”

The newspapers and television pundits in Britain heaped praise on Chicharito’s goal against France and are excited about the impact the Tapatio could have in Manchester.

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At-At Day Afternoon

There is nothing I could really say besides, ‘Star Wars fans must watch this video!’ It is a short video showing a day in the life of a Pet AT-AT Walker, which is absolutely adorable and really well developed.



Created by Patrick Boivin, this video shows the running around of an AT-AT Walker from the time it wakes up and going through his daily adventures as if it was a new puppy.

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Zombie Wedding in Russia

Vitalich and Jirka are a young couple who decided to have their very own special wedding, as zombies. I guess not even death can split-up these two.

Believe it or not, this is the couple’s third wedding so far. Every time they married each other. It sounds strange, I know, but they have reasonably good explanation. Their very first wedding was pretty much what you’d expect a normal wedding to be like. They did it to please their families, but felt they needed to have a new ceremony just for them

The problem was in order to legally get married again, they had to divorce each other. And so they did. Their second wedding was Goth-themed and their most recent one was all about zombies. They got some real cool make-up on, dyed their clothes and asked the same thing from their friends. They consider themselves normal people who just love getting married in the most unique ways.

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