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!

Read more...

How Telekom Malaysia Stands To Reap A Tidy RM252 million If It Accepts Measat Global Offer?

What a bloody insult to one's intelligence!

From today's Business Times:

• Measat Global said it did not plan to maintain MGB's listed status on the stock exchange.MGB's second largest shareholder, 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.... ( Read more: Measat gets RM4.20 a share buyout offer )

What does the 'stands to reap a tidy rm 252 million' means?

Seriously!

How difficult is it to search for Telekom Malaysia's cost of investment in Measat Global?

How many clicks?

Let me count for you...

1. Bursa website to search for companies announcements
2. Click on Archives
3. Click on BY COMPANY
4. Click T for Telekom
5. Click On TELEKOM MALAYSIA
6. Search for Measat.

6 Clicks of the Mouse. How difficult can it be? I dunno but apparently it sure is difficult!

And from this 6 clicks, we have....

TELEKOM MALAYSIA BERHAD ("TM") :- PROPOSED ACQUISITION OF 60,024,010 ORDINARY SHARES OF RM0.78 EACH REPRESENTING APPROXIMATELY 15% OF THE EQUITY INTEREST IN MEASAT GLOBAL BERHAD ("MGB") FOR A TOTAL PURCHASE PRICE OF RM250,000,000.

Yup Telekom Malaysia cost of investment in Measat Global in December 2003 was 250 Million.

• The Proposed Acquisition involves 60,024,010 ordinary shares of RM0.78 each at a price of RM4.165 per share representing approximately 15% of the equity interests in MGB for a total purchase price of RM250,000,000.

Price? rm 4.165 sen.

If Telekom Malaysia decides to cash in this insane offer of 4.20 per share, Telekom Malaysia would get back 252 million.

A profit of 2 million.

And during this period... Measat Global paid ZERO dividends.

So tell me... what exactly does the financial reporter means by Telekom Malaysia 'stands to reap a tidy RM252 million if it accepts the offer'????

Glee!

I would be seriously offended and pissed if I was a Telekom Malaysia minority shareholder!

Seriously!

Postings on Measat Global's privatisation:

1. The Delisting Of Measat Global at RM 4.20
2. The Delisting Of Measat Global at RM 4.20: Part II

Read more...