MTQ Corporation Limited

[kennynah]

solid lah MW


e·lu·ci·date : /ɪˈlusɪˌdeɪt/
–verb (used with object)
1.
to make lucid or clear; throw light upon; explain: an explanation that elucidated his recent strange behavior.
–verb (used without object)
2.
to provide clarification; explain.

example :

All I do is use my blog as a diary of sorts to elucidate my thought process in investing and to document my feelings, emotions and experiences.

[tonylim]

Hi Mw,


Fully understood.
It is either win or lose in any investment, no such thing as sure win or lose. So far you are one of the very few who shares your portfolio and I certainlly appeciate such gesture.
Once again , many thanks and best regards.

Hi tonylim,

Haha you flatter me too much! All I do is use my blog as a diary of sorts to elucidate my thought process in investing and to document my feelings, emotions and experiences. I am glad that you find it useful.

However, do note that whatever I write is always with a Disclaimer. So please do your own research as well. I do NOT recommend either buying or selling any shares which I may mention in any of my posts. Thanks!

[Musicwhiz]

Dear all, I have written a blog post on MTQ's recent corporate developments and given my views on them. Please feel free to visit and leave comments, thanks!

A snippet as follows:-

"Assuming minimal incremental investment is made into Premier as compared to its revenue-generating potential, this deal could result in enhanced top-line growth for the Engine Systems division and may also result in greater economies of scale as MTQES now have 10 branches within Australia. Gross margins could improve as the deal with Bosch also has a positive effect on the division, while Chairman Kuah Kok Kim hinted that Northern Territory’s proximity to Timor Leste and Indonesia may have positive spillover effects into that region which may lead to further growth for the division. "

[millionairemind]

Sell organ to pay for house??

April 30, 2010, 2.59 pm (Singapore time)

MTQ's FY2010 net profit up 10% on sale of shares

By ANGELA TAN

SINGAPORE - MTQ Corporation said on Friday that its net profit for the full year to end March 2010 rose 10 per cent to $12.03 million (US$8.78 million), boosted by a $1.9 million gain from the sale of shares, which more than offset increases in operating and staff costs.

Revenue, however, fell 9 per cent to $81.97 million, due mostly to shrinking revenue from its oilfield engineering division.

It has proposed a final cash dividend of two cents a share, unchanged from a year ago.

[Musicwhiz]

What organ to pay for house? Don't understand.

Anyway, will start to delve into their numbers soon. More homework for the weekend!

[kennynah]

sell its own shares to boost profit figures...that's what MM meant...

1.9mil out of the 12.03mil is ~15%

[Musicwhiz]

sell its own shares to boost profit figures...that's what MM meant...

1.9mil out of the 12.03mil is ~15%

Check the numbers - no treasury shares were sold at all.

The sale of shares was probably in Hai Leck, in which they own >5%. Remove the exceptional gain from the computation of net profit, and yes net profit did dip from FY 2009 to FY 2010. This was because of a 26% increase in admin expenses.

Another red flag I noticed - Trade Receivables went up quite a bit even though revenues dropped.

I always say it as it is - even if I do own shares in a company I will report on good AND bad aspects which I manage to pick out.

[kennynah]

best....not its own shares but that of others?...so MTQ is in the business of equities speculation?

[Musicwhiz]

best....not its own shares but that of others?...so MTQ is in the business of equities speculation?

Actually from your tone and the way you phrase the question, I am not sure what you're trying to imply......

Firstly, it's quite normal for companies to own shares in other companies. Secondly, it's also quite common for companies to purchase more or divest some of the shares in which they hold, as part of either raising cash levels or wanting to own more of a good business.

It was well-known back in FY 2008 that MTQ had purchased and divested an Australian-listed company called RCR Tomlinson, for an exceptional gain of S$40 million, and declared a special dividend to shareholders of 24 cents per share (gross). Management does seem to understand when a business may be over-valued and to sell it to realize some profits and cash back to shareholders.

I very much doubt Mr. Kuah Kok Kim's conservative style of Management can be deemed "equities speculation", unless you have evidence and facts to back up the claim.

Thanks.

[tonylim]

sell its own shares to boost profit figures...that's what MM meant...

1.9mil out of the 12.03mil is ~15%

Check the numbers - no treasury shares were sold at all.

The sale of shares was probably in Hai Leck, in which they own >5%. Remove the exceptional gain from the computation of net profit, and yes net profit did dip from FY 2009 to FY 2010. This was because of a 26% increase in admin expenses.

Another red flag I noticed - Trade Receivables went up quite a bit even though revenues dropped.

I always say it as it is - even if I do own shares in a company I will report on good AND bad aspects which I manage to pick out.

Unlikely to be the shares of Hai Leck that they sold because MTQ owns more than 5 % , so far they did not declare this to SGX .