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| Balance Sheet as at 30 June 2011 |
Saturday, December 22, 2012
Is there any value in XOX?
I am watching XOX with a weird feeling. It is a MVNO with its price pushed to a market capitalisation of RM65 million as at yesterday (RM0.215). Last year, it raised RM42.6 million before 30 June 2011.
Today, it has burned off almost all the cash and left with slightly more thaabout RM8 million in cash after 15 months. In fact if you look at its working capital ratio, it is in trouble already with the ratio much below 1x. It does not build momentum from the cash spent. I do not know where is the bullishness coming from...
If it is about Syed Mokhtar buying the company, I doubt it. Let us ask ourselves, would anyone buy a company that has yet to build a brand, a MVNO (which means hardly any valuable physical assets) for more than RM65 million. If this is the case, Green Packet would seem to be more attractive, don't you think?
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3 comments:
Hi Felice,
The US is getting much of gases out from their own soil. Fossil price may be stabilize and would benefit companies that are using raw materials derived from petroleum. Example, BP Plastic. (I bought 20000 shares recently at RM 0.595.) I would like to know what do you say about this company.
Your statement makes sense, but it is hard to look at these few years as I think the self-reliance on fuel in US would be many more years down the road.
I am not very familiar with business such as BP Plastic.
BP Plastic, thin film manufacturer? steady profit but lack growth story...
Naim vs Dayang make a good story, but in stock investment, as one go north the other went south, although they are related!
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