Leap Forth

  • About
  • Business Intelligence
  • Accounting
  • Consulting
  • Learning
  • Contact
  • About
  • Business Intelligence
  • Accounting
  • Consulting
  • Learning
  • Contact

Feed the mind

Research reports - conflict of interest?

3/3/2016

0 Comments

 
"No names are mentioned in the article of The Star, but a friendly tip pointed at the possibility that this relates to the research report by CIMB on Instacom Group."  You can read the rest of the article here.
Picture
A rather bullish projection? Revenue projected to grow from RM66 million in 2014 to RM195 million in 2015 and a whopping RM572 million in 2016. In 2017, it is projected to achieve RM3.23 billion. The detailed research paper dated 18 November 2015 is here.

Unleashing the giant? Time will tell.
0 Comments

Accounting gimmicks - new dog, old tricks

22/6/2015

0 Comments

 
"Don’t be fooled by AirAsia’s fancy marketing; we think it’s close to default. We estimate that it has managed to inflate profits by 39% over the past five years through related party transactions with associates. Today, these associates have not only stopped paying their bills but require AirAsia’s financial support. The company is basically creating profits and flattering its operating cash flow by abusing its associates. Real profits have collapsed and AirAsia now needs a recapitalisation that will dilute existing shareholders by more than 100%.  We see at least 42% downside with fair value less than MYR1.23/share. Sell or Short. AirAsia may be a new dog, so to speak, but it’s playing a very old trick". GMT Research

AIRASIA: New Dog, Old Tricks from GMT Research on Vimeo.



AirAsia responded promptly with a press release on 22 Jun 2015.


0 Comments

Accounting fraud?

26/6/2014

1 Comment

 
What do you think of this company financial performance?
Picture

The company profit after tax (PAT) increased every year from 2002 to 2008.

PAT went up and down from 2009 to 2012, which is pretty normal. 

However, despite the "profitability" of the company, its cash did not increase much. Its loans and receivables increased every single year since 2002. Fishy?

Finally, the truth is revealed in its recently released result for the fourth quarter May 2013.  It reported a huge loss of RM208 million. Effectively wiping out all the previous years profit. It has an accumulated loss of RM69 million. See the fourth quarter May 2013 announcement here.

What happened? Possible accounting fraud? The auditor is Ernst & Young (one of the big four audit firms).

This company, Malaysian AE Models Holdings Bhd, was classified as a PN17 company in June 2013. It has been suspended and may be delisted on 2 July 2014.

You can read more about this company in Corporate Governance in Malaysia blog.
1 Comment

Can banks be trusted?

6/3/2014

0 Comments

 
Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world.

William Black is an associate professor of economics and law at UMKC. He has held many prestigious positions, including executive director for Fraud Prevention. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management. He is a criminologist and former financial regulator. 

He has seen firsthand how banking systems can be used to commit fraud - and how "liar's loans" and other tricky tactics led to the 2008 US banking crisis that threatened the international economy. Black reveals the best way to rob a bank - from the inside. 

This "bank robbery" has resulted in USD11 trillion in lost wealth and 10 million in lost jobs.

0 Comments

Know when analysts are talking nonsense

6/8/2012

0 Comments

 
Analysts in investment banks and stockbroking companies have some of the toughest jobs.  They have to say something about the stocks, market and economy almost on daily basis - even though there is nothing to say. When market is up, they need a reason to justify it and when market is down, they need to say why.  The market consists of many buyers and sellers.  It is perfectly normal for it to go up and down, without any particular reasons.

Analysts have perfected the art of talking nonsense or talking without really talking. Here are some examples:

Nonsense #1: Trading in a range
Meaning: The stock market has not moved at all and they need something that sounds interesting to say

Nonsense#2: The market is likely to go either way
Meaning: The analysts have absolutely no idea where is market is moving, so bet on both sides

Nonsense#3: The market is in the process of bottoming out
Meaning: The market is going down but the analysts have no idea how low is low or how long it takes

Nonsense#4: We are cautiously optimistic
Meaning: Again, the analysts is betting on both sides - cautious and optimistic.  Either way, they are right

Nonsense#5: Macro volatility
Meaning: The market is uncertain but this phrase sounds smarter
Picture
0 Comments

Stanford jailed 110 years for operating a USD7 billion ponzi scheme

15/6/2012

1 Comment

 
US Judge David Hittner in Houston imposed the sentence on 14 Jun 2012, after saying Stanford had been found guilty of “one of the most egregious criminal frauds ever presented to a jury in federal court". Stanford wasted investor money on failing businesses, yachts and cricket tournaments and secretly borrowed as much as $2 billion from his bank.  Victims described Stanford as treating them like "road kill".  Stanford was ranked 205 on Forbes magazine’s 2008 list of the richest Americans, with a net worth of USD2.2 billion.

Doubt that this will prevent another fraud case from happening. Investors need to be better educated and not be tempted with high return, often sweet-talked into it by brokers / consultants / agents who are paid super high commission. As Accountant and CFP, I always remind clients to stay away from such financial investments (including "schemes" approved by the government).  Buyer beware.
1 Comment

    About

    Business, economy, education and current issues.  Providing tips, tricks and tools in managing business.


    Archives

    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012


    Tags

    All
    Accountant
    Accounting
    Active Listening
    Aeon
    Alibaba
    Allen Stanford
    Amy Cuddy
    Animation
    Articial Intelligence
    Bernanke
    BI
    Brain Rules
    Brene Brown
    Budget 2022
    Business
    Business Intelligence
    Business Model
    Cash Flow Management
    Ceo
    Change
    Cloud
    Coca-cola
    Collapse
    Covid-19
    Creativity
    Culture
    Daniel Zhang
    Dashboard
    Data Science
    Data Studio
    Digital
    Digital Free Trade Zone
    Disruption
    Dr Eric Berg
    Dr Oz
    Dr Richard Teo
    Economy
    Edmondson
    Edward De Bono
    Ego
    Eric Schmidt
    ESG
    Excel
    Exercise
    Failure
    Farmland
    Finance
    First Article
    Fraud
    Free
    Fund
    Garr Reynolds
    Gaur Gopal Das
    George Carlin
    Global Crisis
    Google
    Google Docs
    Growth
    GST Malaysia
    Harvard
    Harvard Business Review
    Health
    Hubdoc
    Inflation
    Innovation
    Inspiring
    Insurance
    Investment
    Ipo
    Jack Ma
    Jack Welch
    Jim Rogers
    John Kotter
    John Medina
    Kai Fu Lee
    Ken Segall
    Kicc
    Kiss
    KPI
    Leadership
    Liquidation
    M&A
    Machine Learning
    Management
    Managing Cash
    Maradona
    Marketing
    Mastermind
    Maxton
    McKinsey
    Meeting
    Meryl Streep
    Milton Friedman
    Mit
    Mohamed El-Erian
    Motivation
    Napolean Hil
    Negotiation
    Obesity
    Online Education
    Paperless
    Partners
    Peter Drucker
    Pimco
    Pivottable
    Planning
    Play
    Power BI
    Powerpoint
    Presentation Zen
    Princeton
    Procter & Gamble
    Productivity
    Property
    Recovery
    Responsibility
    Rest
    Restructuring
    Retirement Planning
    Reverse Mortgage
    Robinson
    Roubini
    Salary
    Seth Godin
    Simon Sinek
    Simplicity
    Sir Ken Robinson
    Sleep
    Smoking
    Startup
    Stephen Chow
    Steve Jobs
    Strategy
    Stress
    Sugata
    Tan Le
    Tax
    Team Work
    Technology
    Thomas Cook
    Tony Fernandes
    Toys R Us
    University Of Toronto
    Valuation
    Vietnam
    Vistage
    Warren Buffet
    Wealth
    Welcome
    WeWork
    Xero


Powered by Create your own unique website with customizable templates.