A Replacement Bonus from Desiderata because the national oil corporation still has not told us Rakyat whether we would get a small ang-pau following its just declared RM43,600,000,000 net profuit for financial year ended March 31, 2006.
Since I do come across revealing business and economic articles occasionally in my line of work, I will share my ER some eye-openers (Is it redundant stating revealing & eye-openers? Please tell Desi, but brudder Mave, no spell cheque reminder, ha!), but I'd reserve my Comments, for raesons I don't need to disclose. My dear ER, please don't ask because sisdar Helen may just send you to That Korner! You wouldn't want to do without her pastries, do you? The Besta in Ipoh, Furong and the 'ole of East Malaysia too. Don't forget, I have friends in Sabah and Sarawak too, where the KUEY CHAP is the Most Best of Damedest Awe!.
ENJOY, but RUMINATE ...
Tuesday, July 11, 2006
Over 50% new PLCs fail to meet forecast
The Edge
More than half of the companies listed on Bursa Malaysia last year failed to achieve the financial results they had forecasted (Desi: Should read 'forecast')in their listing prospectus, the Securities Commission said.
Of the 57 companies listed in 2005 that have published audited accounts so far, 32 performed below their forecast results with two-thirds coming from Mesdaq counters. In 2005, there were 79 new listings.
SC director of issues and investment division Datuk Kris Azman Abdullah said continued efforts would be taken to ensure better quality companies are listed on the exchange as this would lead to more investment into the capital market.
He said SC has widened the scope of enforcement actions last year, which include a dedicated criminal court for capital market offences and senior SC enforcement officers gazetted as deputy public prosecutors (DPPs). This is in addition to having a high level committee on corporate governance and post-approval surveillance action teams.
Last year, SC prosecuted 14 persons, launched one civil action and issued 15 warning letters and public reprimands and 16 private reprimands.
Commenting on the performance of the 32 newly-listed companies in 2005 that failed to achieve their forecast results, Kris said 21 of them were listed on the Mesdaq Market, five on the Second Board and six on the Main Board.
Speaking at the Malaysian Institute of Chartered Secretaries and Administrators's annual conference in Kuala Lumpur on July 10, he said the negative deviation of 21 companies including 15 Mesdaq counters were more than 20% below the forecast earnings.
He added that there were three companies with 10-20 percent negative deviation while the earnings of the remaining eight have less than 10% below their forecast.
On the 25 companies whose results were better than the forecast figures, 11 were Second Boarders, eight were Mesdaq counters and the rest Main Boarders. The earnings of 10 of those companies were 20% above their respective forecasts.
An analyst with a major stockbroking firm attributed the failure of some new PLCs to external issues such as the high oil prices last year.
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