If you follow GHL closely, they are following the blueprint of Revenue. Revenue go PAX, they follow, and worst still only doing e-wallet whilst Revenue is doing payment card and e-wallet into one. Again, they are just cooking a shit e-wallet eco-system. Revenue gotten the money lending license, they also go and get money lending license. If they are so good, isn’t that should have been done donkey years ago?

Furthermore, they have so many different brand of EDC terminals, verifone, ingenico, and with the latest, PAX terminal, which Revenue already pioneering PAX and flooding the market, the cost to integrate or maintain the different brand is going to be a daunting task.

Why?

GHL is a direct licensee of visa/mastercard. These 2 card schemes are bread and butter of all bank, so technically, they are going against with their paymaster. Whatever story they said about tier 3 tier 4 merchant, are druy talk. Why? Do you think tier 3 tier 4 merchants will pay rental for the terminal? So in the case end, who is going to foot the bill? GHL....

GHL.... with the investment from some of the top PE, can’t do shit. The management is the worst i have seen.

Whoever promote GHL, is either never done enough due diligene or have been swayby the GHL management.

Mother share will get bonus issue, warrants will also get new warrants because of the adjustments.

Go with multiple of 300 if you want to buy.

The ex-date have been announced, 20 Dec 2019. So you need to buy before/on 19 Dec 2019. Check their announcement.

If you follow all their quarter result, they have RM0.6m of listing expenses in Q1, RM0.1m of bonus warrants expenses in Q3 and cost incurred for acquisition of about RM0.4m in Q4, all in FY2019, they have incurred up to RM1.1m of one-off expenses.

They should have spread the impairment over the 4 quarters and instead of taking all in Q4 only.

Those who mentioned RM3million PAT is about right.

RM1.85m + acquisition expenses RM0.36m = RM2.21m. And they took in the entire impairment of RM0.52m and audit fee about RM0.1m in Q4, thats make it RM2.74m. And consultancy fee on projects of RM0.3m (never heard of any news that they are working on something), that will makes it RM3.04m. Of course factoring the tax impact then it will be lower.

But I do not know whether is it their intention to show a lower PAT, it is either they don’t really care about the quarter result and just take in all the adjustments in a single Q, or they deliberately show a lower Q, or perhaps they don’t know how to play with the figure.

But y-o-y is showing a solid growth, about 30%. Taking out all the one off expenses of about RM1.1m, the PAT is already above RM10m figure. Growing at super sonic pace.

Law Lee Yen is an indepedent director, not promoter. Moratorium typically don’t apply to indepedent director.

From The Star:

KUALA LUMPUR: Revenue Group Bhd and Hong Leong Bank Bhd are collaborating to enable Singapore's NETS cardholders to shop in Giant and Guardian outlets in Malaysia.

Revenue Group, a cashless payment solutions provider, said on Thursday it was working with the bank to offer payment acceptance and services to NETS cardholders.

The partnership among Revenue, Hong Leong Bank and NETS will cater to the increase in the number of tourists from Singapore by offering them a convenient way to pay when they shop in retail outlets under GCH Retail (Malaysia) Sdn Bhd and Guardian Health And Beauty Sdn Bhd.

GCH Retail (Malaysia) and Guardian Health And Beauty are the operators of Giant, Cold Storage, Mercato, TMC, Jasons Food Hall, G Express, Shop Smart Retail and Guardian.

Revenue managing director and group CEO Eddie Ng Chee Siong said the pilot programme for the NETS payment acceptance was at eight Giant stores, one Cold Storage store as well as nine Guardian outlets in Johor and one Guardian outlet in Malacca.

NETS cardholders can start making purchases using their NETS card from July 15, 2019 onwards at these stores and outlets.

Ng said Revenue Group would work closely together with its key customers so that NETS cardholders can shop in Malaysia.

Singapore is the top country in term of tourist arrivals accounting for 10.6 million last year.

Hong Leong Bank's managing director of personal financial services, Charles Sik said:

“One of the compelling reasons for consumers and merchants to go cashless is convenience, thus it is important to ensure that the convenience enjoyed by NETS cardholders in Singapore is extended seamlessly when they shop in Malaysia.”

Revenue expects the collaboration to help to drive its electronic transaction processing segment as it was set to gain from the electronic transaction processing fee.

From The Edge:

KUALA LUMPUR (July 11): Revenue Group Bhd saw 10 million shares cross off-market today. The block of shares represents a 4.31% stake in the company.

According to Bloomberg data tracking trade of 300,000 shares or more, the shares were transacted in two blocks, worth a total of RM14.9 million.

The transactions were carried out at RM1.49 a share, a discount of 11.8% of today’s closing price. It is not immediately known as to whom the parties involved in the transaction are.

Notably, the stock has surged more than four times from its initial public offering (IPO) price of 37 sen in July last year. This brings its market capitalisation to RM392.08 million.

Revenue’s net profit leaped 40.4% to RM2.54 million in the third quarter ended March 31, 2019, from RM1.81 million last year due to higher revenue thanks to higher sales of electronic data capture (EDC) terminals.

Its quarterly revenue nearly doubled to RM15.52 million from RM7.94 million a year ago.

For the cumulative nine months of financial year ended June 2019 (FY19), its net profit climbed 33.75% to RM6.85 million versus RM5.12 million in the previous year, as revenue grew 88.3% to RM43.94 million against RM23.34 million last year.

Looks like funds are going on a shopping spree on Revenue now. Not sure is it Kenanga again. Anyway, looks like funds are trying to get hold of Revenue shares.

It is nice to see a strong non-believer like yumee, who has been hammering Revenue that the PE high, dont buy blah blah blah... to buy at a high PE and earn money from it. So hows your oil & gas counter holding on?

Textbook method do not give you real life experience, i hope you have picked a good college/uni/school that teach more than textbooks.

And kudos to those that have been a strong believer in Revenue. Quietly then shoot up. This stock does has a characteristic to light up your life when you think it is getting boring and stagnant.

I have just have a word with my banker friend on why the high surge, they say maybe due to Revenue already gone live with one of the top ecomm player in Malaysia, and most likely the funds or those that have been using that service notice it, chasing them now.

Most likely Kenanga would have known Revenue future plans and current business performance.

They take the position now at a low entry price before they move to mainboard next year. So Revenue management definitely has plan it out the corporate strategy now before moving to mainboard.

Revenue is done by M&A. They started as penny stock and become dollar stock.

Alliance did RGT and greatec, one is not performing and another is flying... so are alliance bad? Maybank did titan and LHI, dollar stocks but didnt perform. So big brand doesnt mean it will be good. Public IB on techbond is another example.

2 things work against mestron. First, Mestron problem come from its business model, highly dependent on external factor and there is no wonderful story. The MD miss the opportunity to promote why his company is so solid and bring out their competitive advantage. In the end, the interview give nothing constructive and become a drawback. I have no clue how their recurring revenue will be able to sustain, and when and how the 5G will kick in and help them. Our 4G is not good enough let alone 5G.

Second is the timing of listing, hpmt, greatec and mestron list within a space of 1 wk, people will pick the counter they think will perform better, in this case, greatec has the best story and model.

The operator is right not to push mestron after ipo, but penny stock has it own rules of play. Just that operator choose not to work its wonder in this counter for now.

Greatec success story mainly come from retail investor like the counter and chasing after ipo. Operator basically just work 2-3 days later after sensing retail will chase.

Revenue has a mixture of online and offline business model. MDR for card business, as highlighted in the MD interview with the Edge, it will soon come down, i believe mainly because it is highly regulated industry by BNM.

On the hand, those online MDR will be pretty much on a commercial terms. I do not know how true that they have secured other e-com players and under what terms, but if you read their prospectus, their e-com gross profit yield a higher percentage, mainly because of the cost structure (fixed cost per transaction) whilst charge percentage as revenue. Any increase in the spending will push the margin up.

As for offline, i understand the margin is rather stagnant. Charge percentage as revenue and also pay in percentage (cost), so whether the spending move up, they still earn the same margin.

But ultimately, both are volume game. The more EDC terminals will allow more offline transactions, more e-com players will allow more online transactions processing. But the infrastructure are already built so just process only.

A very interest development now.

Revenue is raising to and above RM1.30 range whilst GHL has trend down from high of RM1.70 to about RM1.30 to 1.40 range. Given GHL market leader position, I would have expected their shares have more trading volume. But that doesnt seem to be the case.

My banker friends told me right now insti funds hold about 15% of the public floats of Revenue. So insti funds are accumulating Revenue and not GHL.

Im not sure how true is the info, i was told Revenue has secured at least 1 or 2 out of the 3 big e-com players in Malaysia and will become their their payment processor. If that is real, then perhaps that is the reason why insti is going after Revenue and seeing their potential.

Kenanga Growth Fund took up the directors shares. 11,819,500 (5.095%). Most likely the balance is using other kenanga funds to acquire.

As stated in Bursa Malaysia website, uninterrupted PAT of 3-5 years, with aggregate RM20mil of PAT, the most recent full Financial Year with a PAT of at least RM6m.

Leong Hup directors are buying, how come it is still dropping and price not even sustaining on par with IPO price despite just listed recently?

Directors buying and selling cannot be view in isolation. You have to look at and sniff at what they really intent to do, at personal and corporate level.

We cant tell what exactly the director wanted to do with the money, at least collectively the 3 promoters are still controlling more than 51% of the company (not sure will he use the money to accumulate warrants).

On a corporate point of view, Revenue shares are slowly getting illiquid and shares are hard to get, i suspect the funds are upping their stakes in revenue and the public shares are getting lesser. For funds, typically they would want to take up large block and not to keep accumulating at 20,000 or 30,000 shares per transaction.

One possible move maybe they will do a private placement and then the promoter take up the private placement. But personally i don’t think Revenue will do any private placement (make no sense to go through the trouble having the money in and out, unless there will be a huge disparity in term of the issue price, but they tend to use 5D-vwaps, that most likely remove that possibility).

My best guess is instead of causing further dilution to the public shareholders after the 3 acquisitions, maybe they choose to use the promoters block to sell to funds and get ready for mainboard listing. Mainboard listing will cause dilution. I think this is a good move to protect public shareholders instead of keep issuing shares and then subsequent being disposed off at open market.

I heard from my banker friends, it was kenanga funds that bought into Revenue. Looking at the past volume and share price. Looks like they have multiple financial institutions invested in Revenue. The price have been sustaining at the range of RM1.20 to RM1.25 range.

The enter of kenanga have set the benchmark at RM1.25 (or if based on Monday closing of RM1.24). Long term is good for the company. Looks like a lot of funds are trying to get in before the big boys come in when they go mainboard.

Looking at their latest Q result, im surprise they are able to sustain the profit. The transaction revenue drop in Q3 as compared to Q2 by about RM0.8mil. But there is a further increase in the EDC segment by RM2.3mil. Assuming their rental income is about RM1mil per month (RM3mil for Q3), the total sales of terminals will be RM6.2mil, there will be an increase by about at least RM2mil in the sales. Looks like the project with Public Bank is pushing them up now.

Their business strategy is definitely bearing fruits now. Can’t wait to see how the two new acquisitions and consolidating of the 75% subsi will help out in the overall business and profitability moving forward.

I just share my own thoughts and the research i done.

Personally, i feel i only have a limited timeframe to be able to collect this counter share. Once they transfer to the mainboard, where big funds will come in and thereafter the liquidity will be limited. Of course limited liquidity also has another set of game play, just like how ghl behave nowadays. 10k to 100k volume and price movement can be like 3-5c upwards, then drop back.

To be honest, the promoters don’t sell their mother shares or warrants actually in a way doesn’t benefits the retail investor (who is taking a long term position). Right now only the promoters have the volume of shares that can release to the market. So retail investors are fighting for the existing public floats and also have to fight with those funds house. Demand is more than supply.

Some may argue then the price will become lower with more shares, but as a long term investor, the key concern now will be there is not enough shares to purchase. Can only buy at higher price. That is my view.

I would love to hear more from the so-called technical analysis, this company had one of the most unpredictable technical trend, how many research house has given their TA and manage to hit it?

This is not a trading counter in my opinion, it is better to treat this as a long term investment counter. You really can’t get hold of when this counter will move, it has been hovering at the range to RM1.20 - RM1.25 for few months then suddenly move up over the last few weeks.

Im not sure TA would give any indication by based on historical movement, prior to Q result (apply to majority of the listed counters), this counter will move uptrend and after Q result, immediately drop. Have been like this since IPO.

If you read their prospectus, the 3 promoters hold 65.2% (145,408,320 shares) of the issued shares. And they are subjected to moratorium of at least 45% up till second 6-months moratorium (should be up till July 2019), in another words, they actually have close to 20% (or 40 millions) of shares that they can dispose off at anytime.

Looking at the last few months, the 3 promoters only sold about 1.5 million mother shares, and collectively sold about 22 million of warrants (i think the warrants also subject to moratorium). They are still holding more than 63%-64% of the mother shares.

With their mother shares and free warrants, logically speaking from the promoter point of view, they should have sold their mother shares and bring down their shareholding percentage to about 51% and keep the warrants. This slightly defy the norm that I would see in any corporate strategy that a listed co with warrants will undertake to maximise returns for the promoters. Different company and management will have different strategies. So perhaps they have a specific reason why they execute in such a way, perhaps taking into consideration of transferring to mainboard.

The price since IPO to todate, it would give them a huge return, but they didn't sell the mother shares and choose to cash in on the warrants. To the directors, their shares are from IPO time, means it is RM0.37, another RM0.10 increase not going to give them much more at the price hovering at RM1.20 to RM1.30 range for few months.

As for disposal done by other directors, most likely they are selling and cashing in from their IPO share. The directors pledged their IPO shares (from annual report top 30 shareholders), so they may be selling and repay the loan.

I agreed that directors selling/buying will send some signal to the market and it is up to the retail market to interpret. Looking from the number of mother shares that they still holding, that shouldn't be a worrying sign at this point in time.

Directors selling shouldn't be the only factor in determining whether you should invest in this counter. The industry, growth prospect, management team, business strategies, competitive advantage all plays a key part in investment decision.

Long term investor. Your definition of long term must be go by trading session. If you really are a long term investor of revenue, you would have by now know how thiw counter behave and know when to enter and out.

Any savy long term investor, who believe this counter will go higher, would have trade warrants to keep.

Looking at the volume over the last 2 days, reached about 6.7mil. On average, revenue mother shares reached approximately 1 - 1.5mil daily volume. So over the last two days, someone would have buy in close to 4mil shares.

Funds may have already position themselves and done with whatever they want to take up and no further addition. If today price continue at 1.30 range, there is a possibilty they may add on, but may not be at 1.34 range.

If you are looking for trading (in and out), and you want to trade this counter share, I suggest to trade their warrant. If you have spare cash, then perhaps you can keep this counter mother share. Looking at the trend, the support level has been around 1.18 to 1.20. I believe funds have entered around that range hence the price has been on quite a solid footing.

Typically, if funds come in, they normally won't trade within the first few hours. Because retail investors follow the green and red colour. Panic sell or panic buy. If you look at the trend over the last few days, the price movement came before the lunch break. I believe yesterday afternoon surge maybe due to retail investor chasing and today drop due to profit taking, huge sell volume this morning at 1.34.

This is not a buy or sell call. Everyone has their own investment strategies, so long invest within their own means and do their own research on the counter they want to invest in.

@817065, you are most welcome. Just putting up a simple view from my perspective.

I agreed to what you said. Somehow the management is able to move ahead of the market by at least 1-2 years. Their new smart terminal is a very good validation of their vision. And with the latest acquisitions, they are leverage on their payment and merchants base and build a solid business ecosystem.

Reminds me of Michael porter’s Value Chain Analysis. Creating competitive advantage.

I just read the edge weekly interview.

Interesting fact/business idea that the CEO share. Now looks like they are trying to build and become a one-stop solution or rather, develop their own Revenue eco-system. If all these execute well, it will be good for the company in my opinion.

The buymall acquisition give them a better marketing point to tackle online website, they are no longer just a typical payment gateway provider. The buymall services can help them to tackle the last mile fulfillment. I kind of like the idea of tackling the tourist on the shopping of duty free products. It reminds me those scene that i saw in Hong Kong/Singapore airport where tourists get those duty free shops to pack and deliver to the gate and the tourists move on to another shop to continue to shop with the limited time. I wonder whether can Malaysian benefit from this, like when I'm returning and my flight passed midnight, majority of the duty free shops are closed. If that is workable i think there will be good for business traveler just pick up the goods and leave the airport.

As mentioned in my previous comment, it is indeed their plan to put the Anypay application into their terminals. Now this will turn normal retail/physical shop into a top out/bill payment outlet. In a short time, they will have like potentially 10k touchpoint. On their merchant point of view, the terminal is already there, i can earn additional income. On revenue point of view, they are maximising profit from one single terminal. In my opinion, with this additional services, they could tackle some key merchants like mynews, 7-11 etc, More marketing point to pitch to them.

It is really interesting to look beyond what they really wanted to do with these acquisition, and now we see a much clearer picture. All these acquisitions in actual fact will bring multiple earnings accretion impact to their business. Looks like the management have analyse and get those strategic acquisition that will help them win business.

My pleasure. Im also just using their public information to run through the figure.

But i think Buymall PE should be around 13x whilst Anypay is about 9.3x, using FYE2020 profit guarantee of RM500k (RM6.5 million / RM500k = 13x) and RM750k (RM7 million / RM750k) respectively. So both PE are lower than what i mentioned earlier.

If that is the valuation, then i would think all these deals goes below or on par with revenue IPO PEx. Means they are not just simply going on a shopping spree to buy and give out high valuation.

Quiet for so long then suddenly action pack within a short 2 weeks.

It is interesting with the latest acquisitions that Revenue undertake. All deals are earning accretion, which is good for the company.

First deal, revenue safe nets, a 75% subsidiary of Revenue. By acquiring the remaining 25%, they will be able to consolidate all the profit. From the announcement, safenets 6 months unaudited PAT is about RM1.9mil, if safenets has been a 100% subsi, the PAT would have been higher at about RM475k. That means this company must have some key merchants/banks. They paid RM7mil consideration, means the total valuation is about RM28mil. If extrapolate the 6m unaudited PAT, the total forward PAT will be around RM3.9m, which translate to about 7.4x.

Second deal, buymall. Have a quick check on their website, they doing 代购 for taobao.com and also cover taiwan online website, so that means is a strategic investment to acquire users/transaction base. I think this investment has 2 plus points, one is that it complement to revenue existing taobao transaction, so in a way boosting the taobao transaction. Secondly, they can also process the transaction using revenue platform, hence earning transaction fee. Revenue paid RM3.315m for 51% stake, valuation about RM6.5m, with total profit guarantee of RM800k, average PAT will be about RM400k and translate to about 16.2x PE. Maybe on a high side but i think this deal give revenue the potential to open up with other online website from overseas.

Third deal, anypay. They provide bill payment and mobile top up. Whilst at first glance, nothing special, but at closer look, their mobile top up or bill payment is done via app, and not at physical store like 7-11. That means anyone can do the top up without the need to go to 7-11 or pos laju. I won’t be surprise to see this app to be in their smart device, if that really works out, literally all their merchant that use their terminal can become an outlet for top up, that will be even more point of sales than 7-11. And top up will also need to go through a payment gateway, again this will help in term of the electronic transaction income for revenue. RM4.9mil for 70%, valuation is RM7mil. 2 years profit guarantee of RM1.25mil, average PAT will be RM0.625mil, so translate to PE of about 10.6x.

The overall PE maybe higher if take into account the profit that revenue can recognised in their book for 2019. But overall, the 2nd n 3rd deals, revenue is using approximately PE 8x to acquire both of them. Looks like a good fit of the business.

It will be interesting also to see how they can leverage these acquisitions and existing business with its money lending license.

Lower sales of EDC are quite normal, the banks cant forever buy terminals. There will be a time the sales of EDC drop.

The possible reason is that:
(1) delay in the bank project (public bank only really kick off in Nov/Dec), how many can they really roll out in a single/2 months?
(2) it is bank last quarter, the banks may have already max out the budget, if u look at the 1Q, there is a huge surge of sales, even more than what they achieve in the full year of Jun2018. So there maybe the most possible reason.

All new listed co experience the same thing, no comparative figure. So they are playing within the rules.

But if you say no comparative for new listed co, it just demonstrate you are just another do not understand and do not do homework.

In their prospectus, they have mentioned 6months audited figure up till Dec 2017. They did RM3.3mil for the 6m2017. For 6m2018, they did RM4.8m (RM5.4m if add back listing expenses, PAT to owners RM4.9m) for 6m2018, so the same period they increase by RM1.6m PAT to owners. Almost 50% increase.

You need to understand the banks partnership and products that they have... don’t simply compare without understand what they do. How many players are there in the market? (Listed and non-listed). Please don’t compare them as competitor to the banks, they are working with banks and not compete with banks. It is the banks that fight the banks.

It is best to keep the ignorance to yourself if you really do not do homework.

GHL’s financial year end is 31 Dec, based on their latest Q result, the full year EPS is 3.49. So their PE is about 48x (RM1.70 share price).

Revenue financial year end is 30 June, based on the last two Q, the 6 month EPS is about 1.93. So if want to annualise, it will have to be 1.07 x 3 + 0.86 = 4.07 or 1.93 x 2 = 3.86. Either way the full year estimated EPS comes higher than GHL.

Revenue recognise one-off listing expenses in 1st Q, without that, the adjusted EPS will be 1.15. So plus Q2 EPS of 1.07, 6 months they did about 2.22. Using that to annualise, then EPS will be 2.22 + 1.07 x 2 = 4.36.

Revenue PE (using the share price before Q result released of RM1.32):
3.86 = 34x
4.07 = 32x
4.36 = 30x

Just sharing information based on publicly available info. You can go check out their investor relation section, not bad they put up some presentation slides on their financial result for the last Q1. Can’t wait to see the latest Q result slides.

Also based on the figure there, historical result plus the last 2Q result, they should be ready for mainboard come full year June 2019.

Mainboard is a different ball game, hopefully at mainboard the share price will be more stable rather than subject to irrational movement like selling off no matter what the quarter result is. But there is also the catch when big funds come in, the price volatility will be lower, profit will be lower.

Try to research on their stock movement before the Q result, and it applies to most counters, price move up prior to quarter result, then once result out, the price will drop. Sell before result and then buy back after result.

Forum has alot of information, just need to do more homework and dont 100% rely on hearsay.

In the long run, they should focus on transaction income, because somehow somewhere someone will use electronic payment. So long the terminals is processed by them, they will earn some fee one way or another.

To them, sales of EDC terminal will give them the additional outlet to process payment transaction.

My understanding is that not all banks have the capability to process payment, hence they will have to work with them. So Revenue will be able to enjoy the transaction income.

No doubt that there is a limitation in term of the number of terminals that they can sell. But think about it, without these additional terminals, to grow organically may take them ages to grow.

On integration with other fintech features, that one should be an on-going effort, my understanding of the new terminal is that they have the capability to do so. So once they are able to develop something, their existing base will be the bargaining tool.

Increase base -> more transaction -> more features -> additional income.

There is nothing unusual for this counter to drop after result announced. Happened to last 2Q, despite good result in my opinion.

Last Q the EDC terminal sale revenue is RM6.472 million, and assume the rental remain the same, the current Q sales of terminal could have dropped by about RM3 million, using its margin of 37.8% in last Q, the profit just from the sales of EDC terminal can easily dropped by RM1 million. One possible reason is that banks capex has maxed out in Dec, no more budget to buy. Another possible reason is that Public bank sales haven’t really take off.

If comparing the profitability, last Q they have a one off listing expenses of RM640k, so the actual PBT will looks like RM3.852 million. And compared to this Q PBT of RM3.332, dropped about RM520k, on the back of a loss of about RM1 million profit from sales of EDC, working backward, means the transaction profit should be increased by at least RM1.5 million (assumed no major change in the solutions business).

(1) The listing date of the warrants should be after the shareholders’ moratorium period. If you read their prospectus, their first moratorium is uplifted after 6months from their IPO. So whatever 15, 18 jan listing/trade date mentioned does not really make sense on the owners perspective.

(2) If i’m the owners, I would prefer to have my shares uplifted only then list the warrants. So can position themselves when the counter become too volatile.

Clearly the date should be after the upliftment of the moratorium on mother shares.

No owners will be naive enough not to have shares on hand and let people goreng their shares and do nothing, just like how one group dump and cause the share to go down on ex-date.

Who owns pictureworks actually?

CCC of PUC sell mother shares, convert the shares, money goes to puc, then puc pay pictureworks vendors, who so happened also called CCC? Isnt they are the same person? The explaination given as if there is another ccc in pictureworks. Funny.

Left pocket to right pocket. The question is who take over his mother share in the first place? Public or funds?

11street acquisition completed on mid Sep 2018, technically speaking, they should only recognise half a month of 11street loss. If RM400k is only for half month of loss, full month is RM800k, 10% will equal to RM8mil per month. So means in dec quarter, the share of loss will be at the region of RM2.4mil if 11street still running at RM8mil loss per month.

But dec QR will still definitely show profit, because if the profit is not enough, just need to reverse the provision for doubtful debt from last year.

The warrants will only be in the CDS account one day before the warrants listed.

But I doubt it will be on 15 Jan.

If not mistaken, warrants should also subject to moratorium. If im the owner, would have set it after moratorium so that will have shares on
hand.

What he means is do IPo listing of pictureworks in 2020/2021.

Why the boss never consider sell non-core assets that he doenst intent to continue -> share consol -> RTO of pictureworks?

Investor is only answerable to himself/herself on the investment he/she made. It is their choice to either invest based on hearsay or invest through validating hearsay with a deeper research. So humble, no need to get so work up on this.

Which share investment strategy is not buy low (weakness or adjustment) and sell high one? Will any investor willing to buy high sell low? Everyone has their own ultimate agenda, so ikan bilis like us have to filter out the noise ourselves.

No one question about pictureworks business model. And it can surely provide more value added things to it, but somehow now the company is solely relying on pictureworks rather than its existing core business.

If u look at the last QR, without the gain on disposal of digital assets, maybe they will be in the red. So after another reading it does show existing business and even with pictureworks profit is not as earning accretion as it supposed to be. But i would say whoever advise/prepare the accounts from last year till this year have done a superb job. So many bullets to defend the books now.

I do not give recommendation as share investment involve personal money, so investment strategy is best keep to own self.

You actually already have that answer in mind whether this is a worthy counter or not, so all i can say is to relook into the circumstances and re-align your investment objectives and make your decision.

Actually information is out there, just that not many people will go deeper to read and analyse. Or perhaps, not many people is familiar with all these financial statements and also how to co-relate these information. But I do agree it is always good to have some good discussion and exchange of ideas based on information available. By doing so, ikan bilis like us have better information to make an informed decision. The market is never perfect.

But thanks for pointing out earlier, otherwise I also won't go deeper to read the QR. So based on QR, if lets say the exercise is completed on the middle of September 2018, so assume they only recognise half a month of the share of loss, which is RM400k, that means one month will be RM800k, so for simple calculation using 10% rather than the exact 12+%, that means 11street is losing about RM8 million per month, to me, that is more acceptable.

So lets assume 1 quarter is RM24 milion (RM8mil x 3 months), 10% will be RM2.4 million per Q. Now that is quite a significant amount already. So what my banker friends said is legit now. The profit from pictureworks may be really will need to cover the share of loss, but looking at last quarter figure of pictureworks RM3.20 million profit, fortunately there is still some room. So overall the last quarter should still have profit since there is a lot of holidays during last Q, the picutreworks business should have higher profits.

Again, just sharing based on what I read and understand and don't mean to create panic. But will be more than happy to be proven wrong in this around.

Everyone entitle to their opinion one, so it is okay. We all just sharing based on what we read and not just hear, because hearing is very dangerous when come to investment, especially ikan bilis like us.

Thanksfor pointing out... now the question is... the share of loss is for one month or 3 months? It make a lot of difference.

Page 9 of QR, exercise completed on 14 September 2018. Enough said. Please read harder.

If it is really only RM100k still not too bad. 2018 accounts should only take some small impact since they take over maybe like in july onwards.

Problem is from RM11mil to RM100k per month, is it doable or not? They must have the midas touch to turn it around in a so short time. If the cost cutting measures in fact really works, is it at the expense of the sales like cutting marketing cost (sales down), down sizing or retrenching staff (any compensation? Who will help to fill up the role?).

Marketplace is never easy. Even if you want to sell you need to reach a certain critical mass only then people may look to buy over.

Last year 11street losing about Rm129 million (average RM11 million per month).

Based on simple calculation, RM100k for 10% stake, the monthly loss is RM1 mil.

From RM11 million loss per month to RM1 million loss per month now... woah... they must have done a superb cost cutting job in there for such a short span of time.

Please understand the accounting term... impairment of assets/investments and try to understand how it works. And also try to understand how the recognition of investment in associate company works.

If they recognise the investment as other investment, this will subject to impairment test annually.

If they recognise the investment as investment in associate company, they will have to account for fhe share of profit/loss of the result of the associate company. If not mistaken, i saw they recognise the pictureworks and 11street as investment in associate companies.

Try to read more annual report. There are some counters in the tech sector being dragged down bu their invest in associate company.