And So P&O Reported Its Earnings

My Auntie scolded me last night! LOL!

We were chatting and then we talked about P&O. According to her, its the reports that matters and the number of pages of the report signals intent and yes do not underestimate the 'powers' of K&N. I chuckled. That's when all hell broke loose! LOL! I wished I had not chuckled! (But seriously, how could I not! Number of pages? 'Powers'!?) LOL! Yes, apparently I have I forgot all about the 'homegrown Google episode'!

Anyway I did not forget the homegrown Google episode. That was the year AsiaEP was deep fried sky high. Some had credited K&N Research for their part when K&N boldly called AsiaEP our homegrown Google!

And here's the nice chart...

Two points made in their stock initiation coverage. ( LOL! Ok.. the report is 8 pages long! :P )

• A homegrown Google and Baidu in the making. Visit the site: http://b2b.itah.com and compare Itah SE with Google’s generic Search Engine (“SE”) by typing in keywords that may link to any products, and then check the returned results from the perspective of a businessperson. You will be pleasantly surprised by Itah SE’s search results’ simplicity and high relevancy – just what a businessperson needs. We believe Itah SE has the potential of becoming a popular B2B SE.

That bold statement insinuating that AsiaEP could be the homegrown Google. *chuckles*

And the valuation.

• STRONG BUY with a 12-month target price of RM0.99, which is based on a FY09 P/E of 10.0x. We believe Itah SE is worth a lot as a technology. Wall Street will not accord Google and Baidu with a market capitalisation of US$149b and US$4.0b otherwise. Moreover, players without a strong presence in the paid-search space, such as Microsoft, EBay and etc., may be willing to pay top dollars for Itah SE once proven.

For some, this report is a non issue already. No one cares anymore because what matters most is that AsiaEP soared and many made their Mah-Silly-Ben-Si from their punt on AsiaEP. ( LOL! And this very post is deemed to be a post of sour grapes! LOL! ).

The target price was set at rm 0.99. It's seductive because even 0.99 sen, the stock is trading at a mere pe of 10.0x. (LOL! AsiaEP must be on a freebie when it traded below 20 sen the previous year).

And the mere 'cheapness' of the stock was based on 2 years forward earnings. Yeah.. Auntie reminded me that no one values the stock based on current earnings because nothing seductive can be sold about the stock!. Apparently there is a brief chat at Sahamas on the stock: AsiaEP and others could see the nakedness of the stock! LOL! Anyway, fy2009 was made on the suggestion from K&N that AsiaEP could earn a whopping 21.8 million. ( you can view the earnings projection table here! )

So AsiaEP was a company making some 3.1 million. in 2006. In 2008, it should make 10.1 million and in 2009 AsiaEP it should make 21.8 million!!!

LOL! LOL! LOL! Hmmm.... where have I heard such earnings projection before? (* wink wink *)

And needless to say, with such projections, the stock is sure deemed to be cheap. And how did AsiaEP did for its FY 2009? (Does anyone care anymore today?)

April 2009: Quarterly rpt on consolidated results for the financial period ended 28/2/2009 - AsiaEP posted a LOSS of 7.469 million!!!

Amen!

And needless to say it wasn't baffling that the stock tumbled down hard!

And AsiaEP reminded me of the OTHER 'Initiating coverage' report from K&N. It was a massive report on Karensoft back in 2004. The title of the report (Ooo.. 7 pages long! hehe! :P ) was called 'Move over Bill, Karensoft coming through!'. ( Karensoft not only crashed and burned, it since had been delisted!). Karensoft postings can be found here..

1. Move Over Who?
2. Move Over Who?: Part II
3. Move Over Who?: Part III
4. Move Over Who?: Part IV
5. Move Over Who?: Part V
6. Move Over Who?: Part VI
7. Move Over Who?: Part VII

Maybe Auntie is correct... maybe they have 'powers'!!

So where are we? Oh... P&O's earnings. LOL! (ps: K&N initiating coverage report on P&O is 15 pages long! :P )

P&O announced its earnings last night. It said it made some 11.072 million. Earlier in the posting on P&O: Regarding P&O: The Stock That Flew Into Orbit, I noted that P&O had a half year losses of 1.417 million, which means P&O's total 3 quarters earnings for current fiscal year is 9.66 million.

K&N estimates for current fiscal year is 32.87 million!

LOL!

Which means P&O have to double their earnings for the last quarter of this fiscal year to 23.2 million 'JUST' to be in-line with K&N's estimates!

WakaWaka! Huhu!

But nah... many would brush everything aside and say it's a non issue. Earnings does not matter for P&O now. It's all about the potential coming from the talks between P&O and Prudential.

Yeah everything is all about the Proposed divestment of an equity interest in Pacific & Orient Insurance Co. Bhd..

Nothing else matters, apparently! ( you know I googled the phrase 'P&O insurance any good (why? I never use P&O insurance before! :P ) and I saw this nice posting from myviclub. http://forum.myviclub.com/lofiversion/index.php/t6669.html )

Yeah.. strange when it comes to merger and acquisition... all these listed stocks talk about selling based on P/BV. However. how about privatisation? Yes, how about privatisation? What yardsticks do they use? How come they don't use P/BV? Isn't it utter shambolic regarding privatisation offer? Yeah.. end of the day.. them minority shareholders are so gullible and they merely represent 'Other People's Money' and they are there to waiting to be screwed!

Damn! I diverted my focus from P&O earnings again.

P&O said it made 11 million bucks woh! How come so good? What's happening yo!

I raced through the earnings notes towards the 'review of performance' section.

And apparently P&O have been rather 'lucky' this reporting quarter. :D

• Group revenue of RM109,701,000 was lower than the RM134,834,000 reported in the preceding quarter. This was mainly attributable to lower gross premium recorded by the insurance subsidiary. However, profit before tax of RM15,395,000 was higher compared to the pre-tax profit of RM5,228,000 in the preceding quarter. This was mainly attributable to lower net claims incurred, recorded at the insurance subsidiary

Lower net claims incurred!

Waaa... huhu!..... is this it? is this it? is this... the... the.... turnaround? Dare I make such a suggestion? :P

LOL!

Me? I have no idea because I am not the neighbourhood sotong!

ps: apparently 'talks' is the key thing to do, eh? Good to talk. Look at Mieco, they went 'talking' and the stock is in orbit land. So how about P&O divestment talks with Prudential? Are the talks for real? Or are they mere talks?

ps: Me? In case you missed it, I am only talking Sotongs.... and Aunties! ( Damn! Still pain! :P )