Silver Ridge Holdings Bhd provides telecommunication system architecture, design
I discover this company after reading the "the busy weekly" at the article about "net cash per share is more than its share price".
After i go through the financial statement from its annual report year 2009, its cash on hand is about 17.1 million, short term borrowing is about 2.3 million, total outstanding shares are 100 million. It is exactly same as what the "the busy weekly" write in the paper, which will give 15 cents net cash and its share price now is trading at around 8 cents (net cash almost double on its share price)
It looks like it is trading at undervalue, but when you look at its trade payable, the amount is as high as 62.7 million! but trade receivable and amount due from customers are only 53.2 million~ so its mean the cash on hand is not totally free, the cash need to use as maintain the operation of the business.
Is it this business worth to invest?
Look back to its past 5 years earning record, 3 years earned, 2 years loss (loss is more than earn). This definitely not a good business.
Last year 2009, net profit of the business was RM 1,766,141.00 but executive director salaries & other benefits was RM 1,286,995.00. So whats wrong with the figure? The executive director salaries & other benefits already took out 42% of the income~ beware of this type of management, definitely management is at the interest of the minor shareholders.
Remarks: Above statement is my personal point of view, it doesn't recommend any sell or buy.
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