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bro andytanks,
on 16/07 - you said " Not to worry... MR will come back for more....
on 18/07 - you said " MR is badly injured during the bull run.... Need time to recuperate.
and today you said " MR will come back soon......
which one is correct statement?
Seriously after reading all the past posts... i think alot of ppl would have suffered heavily based on those comments of buying in...
Maybe everyone should be cautious about posting their opinions to prevent injury. I believe for this forum to be effective, we need to study our opinions before posting. Let's make money together and not drown together. Thanks!
- techincal rebound
stabilizing at 0.335-0.34.
Potential further 10% downwards flactuation.
Mediaring; SELL S$0.39 (Downgrade from Hold) Price Target : 12 Months S$ 0.30 (Prev S$ 0.42)
Mediaring has warned that they could report operating losses for 1H07 compared to US$2.4m gain in the
same period last year. Because of one-off gains from PacNet disposals, the company should report net profit
though. The company attributed the losses to (1) weaker topline (2) lower gross margins and (3) impairment
of assets following a review of goodwill. We had expected Mediaring to register 40% growth in earnings yo-
y and report US$3.3m in operating profits. Given the highly competitive business environment, we revise
our estimates down for FY07-FY08 recurring income by 45%-42% respectively. At a similar ex-cash PE ratio
of 16x for FY08, we derive a fair value of S$0.30 for Mediaring. We downgrade our recommendation to SELL
from HOLD. The high valuations for the stock in the past were justified by high growth expectations (FY06-
FY08 EPS growth of 37% CAGR previously), which is not coming through due to increased competition in the
VoIP space.
Based on a preliminary review of the Group's operating results for the period, the Group is likely to report an Operating Loss for the half-year ended 30 June 2007, compared to an Operating Profit of US$2.4M reported for the corresponding period last year. We expect revenue to be around 4% lower than the corresponding period last year. However, overall, the Group is still expected to post a Net Profit for the period as it made a gain on the disposal of shares in Pacific Internet Limited.
The Operating Loss for the period was due to the following factors:
1. Intense competition in one of our major regions, coupled with an escalating termination cost for one of our major terminations resulted in a drop in revenue as well as compression in gross margins; and
2. Impairment of assets following a review of goodwill impairment and fair valuation of intangible assets.
The consolidated financial statements for the half-year are currently being prepared and the final figures may vary from this preliminary estimate.
Meanwhile, the Board and the Management of the Company have been working on various strategies to:
i. improve the gross margin;
ii. reduce market concentration in certain areas;
iii. broaden the termination reach of the Group; and
iv. increase the revenue contribution from other non-traditional PC to phone sectors.
Further details of the Group performance and broad strategies will be disclosed when the Company announces its half-year un-audited results on 13 August 2007.
By Order of the Board
Khaw Kheng Joo
9 July 2007
MR will stiil report full year profit for the year ! continue to invest more !