And, to look at it from another perspective. Today in all Malaysian newspapers.
Some highlights here,
-Transmile Group Bhd’s stock was downgraded by analysts yesterday, who said the former industry darling could trade as low as RM. 5.50 when trading resumes June first.
-Analysts cut their price target on the stock to as low as RM. 3.33
-Transmile told Bursa Malaysia on May Seven, (stock price at RM.13.50) that audits of its financial statements could not be finalised due to the absence of “relevant supporting documentation from the management on certain transactions” (after that stock dropped to RM.8.90)
-Special audit now by Moores Rowland Risk Management, suggested that Transmile could swing into a loss in financial years 2005 and 2006.
Making full provisions would result in 2005-2006 pre tax profit of RM 120 million and RM 207 million becoming pre tax losses of RM 77 million and RM, 126 million respectively.
-An auditor, who declined to be named, said that it was difficult to determine whether the overstatements in revenue where due to fraud or accounting error and details on that are sketchy, to say the least, the auditor said.
-A lawyer, familiar with the issue, said that right now Transmile is open to legal suits in various shapes and sizes.
It is now a matter of whether the case is a civil one or criminal: criminal if it involves fraud, and civil if it involves negligence on the part of the company, the lawyer said.
He added that if it would go to court, Malaysia would have not seen a corporate governance case of such magnitude in its courts before.
Stock opened at Bursa Malaysia this morning as we speak at RM.6.25, down from RM.13.5 at May Seven. That is 54 percent off in three weeks. Using the expression, money talks, it clearly did in this case, it said “goodbye”
Strenght to all who will remain to work hard and clean up the mess, the going gets tough.
The mind boggles.
Regards
E.B.