I think there still has hope for this counter. after they rebranded into asean metropolitan university, you can see their advertisement boards all over the highways. They have also introduced a variety of courses besides health science courses. In addition they are also working together with famous australian universities
The education industry is in the slumps. Firstly, most colleges are depending on PTPTN as funds for their profits, so it's subject to political decision on whether the government will provide free education and build education institution to cater for the policy. More likely if PR wins, then the freebies may kill most private institutions. Secondly, the courses provided by Masterskill such as nursing suffered huge glut in the market. In future most Medical institutions will also suffer huge glut in the market as many as 3000 doctors are produced each year. Until a clear education financing policy is in placed, the continuous dependency on PTPTN to support private institution profits is not sustainable. At the moment, disproportionate loans are disbursed compare to the amount of repayments received.
Datuks set up private colleges, lure students. Students borrow, give to datuks as tuition fee, datuks make profit, students graduate, find no job because of glut, cannot pay PTPTN, government lose money. Basically in simplified equation, money from government to money to datuks via students.
Masterskill: Company intends to be asset light by hiving off its properties. Masterskill Education Group’s (MEGB) plan of employing an asset-light strategy by hiving off its properties is nearing fruition. The plan, which includes using the proceeds from the sale to retire borrowings and return some cash to shareholders, would be considered by the board at a meeting this week. The total current value of MEGB’s properties was just under RM350m, with the total book value at about RM245m as at June last year. (StarBiz)
Looks like not recovering anytime soon. I think early days of listing funds were covering them because they told good story but the financials declined and most funds got burned.
now hard to said, last time megb said asset disposal , give special dividend but that was announced by previous MD, santhara, now changed to new MD, special dividend may not be the case anymore
looks like many objective directions needed by co.balance sheet,cost to income,losing segment of business etc must be redirected soonest before co.can get health back.siva kumar appear confident n timely to tackle n resolve hiccup.
I am afraid this stock will follow Stamford College Berhad that started making losses in 2003, broke even in 2009, could not sustain and than was de-listed in 2012.
A lot of new players have entered the market, stiff competition has caused margins to be squeezed and demand for teachers increased causing a rise in salaries and overheads.
This is could be the reason why they did not issue special dividend and retained the funds for working capital.
Risky stock to hold. Better get out now and cut your losses rather than risking loosing everything. Unless, they can come up with something spectacular real soon.
The company still worth some money from asset perspective only, i think growth is the key for the share to bounce back, the management needs to do something to give shareholder confidence, else difficult.
is ed. santhara(dr) the former ceo? thought he sold to siva kumar.selling pressure likely from major holders not in thinking with current controllers;may be a passing hick up.sk appear confident to hold major stocks.good luck to the brave players.
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....
tan84
91 posts
Posted by tan84 > 2013-01-23 20:45 | Report Abuse
hope it will rise above my entry price, then i make a quick exit
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