How 'Analysts' Made 100 Million Out Of Nothing At All!

I just flipped to my morning copy of the Star Biz. The main article was Window for TM to exit Measat

The first line under the header said "Telekom Malaysia Bhd (TM) stands to book a one-off profit of around RM100mil if it chooses to part with its 15% stake in satellite service provider Measat Global Bhd, analysts said"

I fell of my chair laughing my ass off!

Let's see, what's the fact again? Hmm... the fact is Telekom Malaysia cost of investment in Measat Global was 250 million in 2003. Measat Global's privatisation offer is a stinking 252 million!

I wonder what spin this so called analysts have to create this rm100 million profit from?!!!

I started whistling to the tune of "Making money out of nothing at all"

:P

• Telco stands to gain RM100mil from 15% stake sale
  
  KUALA LUMPUR: Telekom Malaysia Bhd (TM) stands to book a one-off profit of around RM100mil if it chooses to part with its 15% stake in satellite service provider Measat Global Bhd, analysts said.
  
  This was based on estimates that TM had written down its investment in Measat to around RM2.50 per share since 2003. TM owns about 60 million shares in Measat.
  
  Measat’s major shareholders have announced plans to take the company private at a price of RM4.20 per share. If TM sells its Measat stake, it would gain a gross figure of RM252mil. Compared with the written-down price of RM2.50 per share, or RM150mil, this gives a gain of over RM100mil....

Huhu!

ROFLMAO!!!!!!!!!!!!!!!!!!!!

So apparently TM wrote off their investment. From rm 250 million to just rm 150 million!!!!!!!

LOL!!

LOL!!!!

LOL!!! LOL!!! LOL!!!!

What a wonderful world this is!!!

Now my friends, this is how the analysts made 100 Million out of nothing at all!!

Huhu!

So TM paid 250 million for their investment. If they sell their investment for 252 million, they will make 100 million!!!!!!!!

World champion la!

LOL!

I guess this gives Telekom Malaysia the special 'pass' to sell their investment in Measat Global!

And my friends... life is simply good or what!

ps: the last time Business Time said "Telekom Malaysia Bhd, which held a 15.4 per cent stake as at April 26 this year, stands to reap a tidy RM252 million if it accepts the offer". ( See posting How Telekom Malaysia Stands To Reap A Tidy RM252 million If It Accepts Measat Global Offer? )

ps: don't you get the feeling that our financial press are trying very hard to get Telekom Malaysia to sell its stake in Measat? Poor TM!