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How can you expect Management Team to govern a Company if they don't even realize that the provision of costs overrun could affect the profit margin????? Maybe they tot that Investors are all IDI0TS !!!!
All Investors must sell-off to teach others a lesson that such Acts wouldn't be tolerated at all costs. Cheers!!!!!
PS. The Exchange must press for clearer answer !
Quote :" .....the management did not realize the significant impact of those delays and costs overrun had on out profits and accordingly did not issue a profit guidance to investors."
"did not realize"...so they are surprised too!
Management said it preferred to present an accurate picture, after ascertaining the facts about the losses.
Management is the most important asset of any company.
No profit warning was given........who know there may be more surprises!! I investors don't like surprises!!
A chance to move and bottom fishing.
In an update after lunch, Bio-Treat blamed the rain for the lower margins it suffered. Its finance director Alan Lau said it had spent RMB50m to restore 15% of its sites damaged from rain and floods.
It extended its falls on mounting concern over its earnings outlook, with analysts wondering whether the one-off items that caused the company's losses in the fourth quarter to June this year will be repeated going forward.
"Execution bumps have surfaced with the cost overruns at the Xianyang project. Possible repeats of such incidents will dampen Bio-Treat's future performance," SIAS Research said in a note.
On Tuesday, Bio-Treat surprised the market when it reported that net profit for the year ended June fell 42.3 pct to 189.01 mln yuan due to higher operating expenses, finance charges and taxes. That implied a net loss of 66.50 mln yuan in the fourth quarter to June.
Merrill Lynch said it has downgraded its rating for Bio-Treat to a "sell" after it reported disappointing year to June results.
"We expect Bio-Treat's share price to be significantly affected by the disappointing year to June 2006 results, which may trigger the reset clause in the $206m convertible bond issue, resulting in a reduced conversion price (from $1.30 to as low as $0.91 per share) and higher earnings per share dilution (from 18% to 26%)," Merrill Lynch said in a note.
Merill Lynch slashed its net profit estimates for Bio-Treat by 47% for the year to June 2007 and by 55% for the following year. "Although we remain positive on the long-term prospects of China's water treatment sector, Bio-Treat's latest results have raised our doubts over its ability to secure and execute projects while maintaining healthy profit margins and returns," it said.
Expect more selling with DBSV's target of $0.70.
The IPO price was 45 cents. It went all the way up to a historical high of $1.38. As it has not reached its historical low, it is likely to dip further within the next few days. Be prepared to S/L and not be played out by the sharks. Rebound may take just as long as it took the stock to move upwards to its previous peak.
I must say the picture is looking really bad for this counter..
"DJ DBS Vickers Cuts Bio-Treat Target To S$0.70 From S$1.33
Back
*DJ DBS Vickers Downgrades Bio-Treat To Sell From Buy
(MORE TO FOLLOW) Dow Jones Newswires
August 29, 2006 21:47 ET (01:47 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.
*DJ DBS Vickers Cuts Bio-Treat Target To S$0.70 From S$1.33
(MORE TO FOLLOW) Dow Jones Newswires
August 29, 2006 21:47 ET (01:47 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc."
Suspect next 2 days of margin calls and force selling will depress prices even further...not vested
(above DJ news cut and paste from SI Forum)
I am expecting a rebound,.. just went in to buy , testing 8 lots . Margin is down, but overall , the company is still earning. Personally do not believe it's a bad stock to own.
just vested 10 lots at 0.84... all right, just wait and see the price in december 06..
derekchong, this is a good stock, you don't have to sell right away ..just wait for few days..
Hi chipchip66,
For non-Singapore registered companies, you cannot buy the stocks using CPF fund.
Thanks jessie for your concern.Just vested 10 lots.I used to average down.Sometime correct but most of the time wrong.It went down further and no sign of recovering.I learn from gurus in this forum dont average down. Ai yah maybe just stay put and see what happen next few days.
Can we use our CPF to buy this stock? Tks.
Hi derekchong, sorry to learn that you are vested. I also do not know how to advise you. If you did not buy many lots, you may wish to consider averaging if company is fundamentally still strong and market could have over reacted and oversold ? I know that some gurus dont advise averaging....
There was heavy shorting at commencement this morning beyond fundamentals. Now heavy support at 92/92.5. Expect more rational behaviour to come into play once people reasses the fundamentals and forward going prospects in China this afternoon.
It plunged as much as 34.4% to $0.80, the lowest level in 10 months, after the firm announced a sharp drop in full-year net profit. It reported a 42.3%drop in full-year net profit to 189 million yuan ($23.74 million).
"Net profit was 52% below market and our expectations," said CIMB-GK in a research report, prompting the brokerage to downgrade the stock to "trading sell" from "outperform" and to cut its price target to $1.11 from $1.44.
"The RMB 67 million loss suffered in 4Q06 was extremely disappointing, given Bio-Treat's excellent record of double-digit earnings growth in the past 10 quarters," CIMB-GK said.
"Net profit was 52% below market and our expectations," said CIMB-GK in a research report, prompting the brokerage to downgrade the stock to "trading sell" from "outperform" and to cut its price target to $1.11 from $1.44.
"The RMB 67 million loss suffered in 4Q06 was extremely disappointing, given Bio-Treat's excellent record of double-digit earnings growth in the past 10 quarters," CIMB-GK said.