Hey guy, Lets us do some calculation on RCECAP. See how much it worth if it is ceased operation, since now the rumours are spreading around.
The following figures derived from their 2010 annual report. All are stated in RM.
Non-current Loan receivables: 992,527,064
Current Loan receivables: 146,080,924
Trade receivables: 30,387,175
Deposits in bank: 270,935,391
Cash in hand: 18,775,540
Total assets: 1,458.706,094
Non-current borrowings: 705,252,716
Current borrowings: 314,606,265
Current payables: 71,004,385
Total liabilities: 1,090,863,366
Outstanding shares: 782,395,366
If we use total assets minus liabilities, then we get RM 367,395,174
If we divide it with outstanding shares, then we get RM 0.47 per share
Do not forget, above figure are extract from "money figure" only, I am not yet include plant, equipment, investment properties, other receivables. And also above figure are excluding the interest earn and loss from loan receivables and borrowing respectively. Other than that, this figure is based on annual report 2010. So RCECAP should definitely worth more than RM 0.47 if it ceases its operation.
Based on annual report 2010, page 92, if RCECAP manage to collect back all the loan plus interest income, then the figure should be RM 2,311 million, not as the figure stated above loan receivable RM 992 million.
It is interesting to see some of the stock analyst in the market to downgrade its value from RM 1.10 to RM 0.45 just because just some trouble happen on RCECAP. They always upgrade their target price if the market is good, and downgrade when the market is bad. If you are smart enough, look at the rich people around us, did they sell their business, their investment with cheap price when market is bad?? NO! none of them!!
Do not believe all the analyst words, their job is to write news, their job is to help them earn money, their job is NOT helping you earn money!!
When during 2008, when the price keep falling, analyst keep revising their target. Buy when things are bad, sell when things are good. Unless the counter is bad forever, or good forever.
ReplyDeleteThis counter definitely is a gem. If the government give you an AH LONG license, what will you do? :p
ReplyDeleteIt is same like government give you casino license or 4D license..