Boustead

[Blackjack]

Not common to see contract wins for Salcon...

[Musicwhiz]

Boustead Q3 net profit falls 15.5% to $8.7m

BOUSTEAD Singapore's net profit fell 15.5 per cent to $8.7 million for the third quarter ended Dec 31, as revenue slid 9.6 per cent to $103.6 million, compared to a year earlier. The group, which sells infrastructure-related engineering and other services, said it expects to deliver good results for its current financial year, which ends on March 31.

[millionairemind]

Just curious MW. I don't follow Boustead that closely.

By any chance, could you have foreseen this dip in profits?

[Musicwhiz]

Just curious MW. I don't follow Boustead that closely.

By any chance, could you have foreseen this dip in profits?

Their revenues are contract based, so looking at quarterly profits is not very indicative. Instead, it will be better to focus on full year profits.

For this 3Q 2010, I was looking more at the Balance Sheet (cash has increased, debtors reduced) and Cash Flow Statement (+ve op cash inflows of S$19M), and I feel satisfied.

[Aspellian]

Just curious MW. I don't follow Boustead that closely.

By any chance, could you have foreseen this dip in profits?

Their revenues are contract based, so looking at quarterly profits is not very indicative. Instead, it will be better to focus on full year profits.

For this 3Q 2010, I was looking more at the Balance Sheet (cash has increased, debtors reduced) and Cash Flow Statement (+ve op cash inflows of S$19M), and I feel satisfied.

on one hand, some investors could be comforting himself that +ve emerges (despite a fall in profits). on the other hand, it is true that contract business is cyclical q-o-q and full year results, health of balance sheets, margins, order books and strategic directions more important.

i really applaud MW for knowing very early of analysis paralysis... i still trying to differentiate... for stocks i like, i tend to be very biased and it has burnt in the past - whereby i simply ignore the RED FLAGS !

Now i hope to analyse by listing more negative points or potential risks than +ve points. if after doing this, and i still am satisfied with the remaining +ve points, then FA process is more robust (i hope)... maybe there will be trading paralysis from over-aversion to analysis paralysis as a result of thought paralysis/.... time for system overhual and renewal of new wineskin so as to store new wine!!! hahaha!!!


(PS: dun mean to offend anyone, ok? still will like to meet up in future for cuppa coffee / fish and chips!!)

[Musicwhiz]

Hi Aspellian,

You give me way too much credit! Haha!

I have been guilty of ignoring red flags as well in the past - due to the Endowment Effect, we always perceive what we own through glazed eyes and fail to notice the bad signs. It's really quite human to do so, thus we have to constantly remind ourselves to be objective (which is why investing is tough psychologically as it requires you to tell YOURSELF that you are wrong sometimes). How many people can wake up in the morning, look in the mirror and say "I was wrong" or "I made a bad decision"? Not many.

As for Boustead, yes there are definitely red flags here and there (like their contractual portfolio, uneven revenue recognition, persistent delays in Al Marj project, possible cancellation of salcon's S$175M water project, the yet to turnaround Salcon after 4 years!), but then every company has such business difficulties and it should not preclude us from making an investment should we see that Management can still run the Company reasonably well. It's a judgement call, no doubt, but then that's what investing is about!

[millionairemind]

I AM WRONG, I AM WRONG, I AM WRONG

Too much goofing off on my part

[Musicwhiz]

Hehe, nice poster!

[millionairemind]

March 31, 2010, 6.18 pm (Singapore time)

Boustead's unit wins S$40 mln contract

By ANGELA TAN

Boustead Singapore Limited said on Wednesday that its 91.7 per cent-owned subsidiary, Boustead Projects Pte Ltd, has been awarded a S$40 million contract to design-and-build an integrated test bed facility.

Cenco is a supplier of jet engine test cells, data acquisition and control systems, and jet engine test equipment for commercial and military applications, ranging from small turbine engines to large turbofan engines. Cenco is a wholly-owned subsidiary of Techspace Aero.

The facility will be 7,900 square metres at the Seletar Aerospace Park.

It is expected to be completed by the second quarter of 2011.

[Blackjack]

Another one awarded to subsidiary... no wonder its green today in a sea of red