Icon888 Bro, you always lack the most important stuff in these kind of industry. Cashflow.
At least you print a screenshot of cashflow for us to determine in someway:
1. Was the earning REAL earning ? When I'm saying real, it's Real Hard Cash ?
2. Dividend ... Was that paying from the earning due operation or like Maxis, paying dividend by using debt ? Was the dividend sustainable ? Or the dividend amount is better to repay debt ?
IMHO, we can dig tons of info from cashflow, alone. P&L statement ? to me, that's just bonus =P
Page 118 of FY2014 Annual Report states that "the company issued RM113 mil corporate guarantee to financial institutions for credit facilities granted to subsidiaries"
It goes on to state that "the facilities utilised by the subsidiaries as of year end amounted to RM22.5 mil"
My guess is that the bank has given them maximum credit limit of RM113 mil and requires all of them to be corporate guaranteed (a common feature). But the subsidiaries had only used up RM22.5 mil (the group traditionally doesn't rely much on borrowings)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
CFTrader
812 posts
Posted by CFTrader > 2015-03-22 00:24 | Report Abuse
Icon888 Bro, you always lack the most important stuff in these kind of industry.
Cashflow.
At least you print a screenshot of cashflow for us to determine in someway:
1. Was the earning REAL earning ? When I'm saying real, it's Real Hard Cash ?
2. Dividend ... Was that paying from the earning due operation or like Maxis, paying dividend by using debt ? Was the dividend sustainable ? Or the dividend amount is better to repay debt ?
IMHO, we can dig tons of info from cashflow, alone. P&L statement ? to me, that's just bonus =P