Friday, July 27, 2007


Lao sai lah, the morning dropped 100 plus points (3%), but recovered to close down 87 points at 3492, with rather respectable volume of 4.1 billion.

Surprised to see that Lian beng close up 0.005 and realised that they just released their quarterly results. From a glance, seems like they do pretty well, profit after taxation increased 183.7%. But on closer look, a can of worms opened. Revenue dropped 21.6%, while most of the income comes from 'other income', which includes things like forgiveness of loan from minority shareholder (seriously what the heck is this?). If most of the income comes from 'other' sources rather than their core, this is bad. Based on their core business alone, lianbeng quarterly gross profit dropped 26.7%.

Looking at the balance sheet, not optimistic as well. Rather weak balance sheet. I guess it's the norm for construction counters? Their liabilities far far exceeded their profit...must check with other counters in same industry before i know any better. Cash flow even what if they earn 187% profit, their net cash flow is negative.

Haha, no way I'm investing in lian beng for long term...unpredictable business, cyclical industry, bad cash flow, poor balance sheet with high gearing :) haha, so why am I still in this counter? Speculation loh :P Anyway, 5 lots only...oh oh, they give dividend of 0.22 cts per out to be around $2.20 per lot. If they are giving dividend, means they have no better use of their money? haha :) Not interested in their $11 (i have 5 lots)...maybe can make use of this to sell higher. I've rode this for some time already :)

Haha, got another news from lianbeng. This one is about selling 50% of lianbeng's stack in a jointly controlled entity (called lianbeng energy) to manhattan resources limited. After the proposed disposal of shares, Lian beng energy will become a wholly owned subsidiary of manhattan. Here's the juicy bit, the total consideration (or price that manhattan had to pay to lianbeng) is a nominal S$1, after taking into account the asset and liabilities of lian beng energy.

Long story short, manhattan buys over 50% of stack in lianbeng energy (jointly controlled by lianbeng group and manhattan). In return, manhattan offers to pay lian beng's group S$1, plus pay shareholder's loan of S$9,654,479.94.

Good news? or bad news?

SGX - damn solid company...suck off so much money from us...earn so much! But seriously their margins is very high (50%), with high growth in everything...maybe it's during bull phase, do so damn well..

I'll blog more next time...DAMN tired...

Portfolio okay lah, considering SGX kena whacked like mad. Total losses -$2.8k

Dow not cooperating again...-100 now. Europe all red, but the selling is much more mild compared to yesterday. Worry on monday, enjoy weekend first :P