I looked at the company and recognise its poor governance but despite the red flags raised I allocated a (very) small portion of my portfolio to this share.
I've initially purchased the counter at 0.355, then averaging down all the way to 0.255 back in August 2013.
Since then, we have had the disposal by its majority shareholder (from over 71% to below 23%), demised of the major shareholder, even the auditor resigned. They pay 15% to 35% for interest on borrowing yet only receive less than 0.5% for its cash at bank...
Operationally, the company seems to be doing well. But with the market distrust of all thing China - CSL's share have continuously trended down since my initial purchase.
While the company have gotten even more attractive from a valuation standpoint. I am deeply disturbed by the quality of disclosure by the company.
In a local investigative article by The Edge, the newspaper have raised many legitimate question regarding the company, including the authenticity of the cash in bank and its business model - in the aftermath of the article, the local regulator did not even ask any question of this company.
Perhaps the person in charge is still away on holiday...
What sort of business borrow at a hefty 35% while only receiving 0.4% for its cash balance? They don't even need to borrow as they have more than a billion in cash at bank?!
The major shareholder sold their share, the auditor resigned, the share have crashed. No query from Bursa...
This episode taught me an important lesson in not buying shares in companies with shady governance, no matter how cheap they may be. I wish everyone still holding onto the shares "good luck".
Maxis said it had invested RM815mil in financial year 2013, mainly for the expansion of its 4G coverage footprint and population coverage.
ReplyDeleteThe company noted that it currently commanded the widest 4G coverage footprint, covering 15% of the population within a year of roll-out.....
Maxis spent RM 815m for 4g LTE expansion (2x 20Mhz 150Mbps) and yet only have 15%$ coverage !!??
YTLP already have 85% coverage, but is for 4g Wimax....however, migration and switch its 4g Wimax to 4g LTE is just matter of adding a channel card as all its exiting transmission tower develop since 2010 are flat IP network, in which all its all its transmission tower are LTE ready platform. YTLP upcoming migration from its 4g Wimax to 4g LTE will be very fast, its coverage can immediate reach 85% if it opt for total migration and its speed is much faster (2x 30Mhz 220Mbps)
Just student and teacher under 1BestariNet already more than 1 million......but, of course these are FOC and low demand user, main for teaching oriented, need 4mbp for frog VLE, and fees is born by gov at RM 300m/year. However, if some of them opt for advance package, higher speed and 4g LTE and demand beyond school boundary, these potential customer pool is low hanging fruit to capitalize on.
With increasing coverage 85% now, YTLP already step up effort in its marketing to entrace retail customer , more kiosk been set up in shopping mall, partner with SenHeng, Transnational bus line, proton etc.
As shareholder, lets give them sometime to deliver result.
hng - you know or seen anyone using these 1bestarinet? just curious how are they finding it.
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