Back

Latest Forum Topics / Duty Free Intl    Last:0.067 --

Post Reply

BBs tactics to scare small investors??? Post Reply Rate topic
tonylim70 Veteran	12-Mar-2018 07:53        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	P/E ratio not true reflection because the drop in profit is due to the rise in ringgit affecting the FIXED DEPOSIT in SGD and USD, is just an accounting treatment tonylim70      ( Date: 11-Jan-2018 20:15) Posted: Duty free international has fixed deposit of around $2.8M SGD and $42M USD sitting in the bank. Now, when ringgit is weak, the $2.8M SGD and $42M USD will translate to higher Ringgit so it is treated as profit as in 3Q 16. Profit of $9.572M Ringgit forex gain. In Q3 17, ringgit rises. So the same $2.8M SGD and $42M USD will translate to lower Ringgit so it is treated as loss of $7.538M Ringgit. The fact is the money is still there, the " loss" is a accounting treatment becos duty free reports in Ringgit , so the same amount of SGD and USD is still sitting in the bank but their value in terms of ringgit is lower. So this is an accounting treatment and it does not mean real loss. Next. Minus away the Forex factor (which is variable becos ringgit can rise or drop.) In 3Q/16, the " real" profit is $22.295M - $9.572M = $12.7M Ringgit (during 3Q/16, the exchange rate was 3.15RM = 1 SGD), so $12.7M ringgit = $4.03M SGD In 3Q/17, the " real" profit is $4.577M + $7.538M  = $12.1M Ringgit (during 3Q/17, the exchange rate is 3.02RM = 1SGD), so $12.1M ringgit = $4.01M SGD So the real profit drop by a neglibible $0.6M ringgit only. BUT becos Ringgit rises, in terms of SGD, the profit in SGD term is considered the same. I dunno why today the investors over react? Maybe BBs trying to scare those investors who do not know the real facts?
Useful To Me  Not Useful To Me
tonylim70 Veteran	12-Jan-2018 08:05        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Duty Free International was listed as DFZ Capital in bursamalaysia and was bought over by Atlan I think in 2005 (if my memory serve me right) prior to 2011 listing in SGX, Attached is the dividends given out by them. As u can see, even during Lehmen brothers 2008 to 2009, they were giving out dividends. So I dun think they have trouble giving out dividends in the long term , especially now they are cash rich and zero debt. Information can be obtained from www.sgx.com and www.bursamalaysia.com
Useful To Me  Not Useful To Me
tonylim70 Veteran	11-Jan-2018 20:15        tonylim70 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Duty free international has fixed deposit of around $2.8M SGD and $42M USD sitting in the bank. Now, when ringgit is weak, the $2.8M SGD and $42M USD will translate to higher Ringgit so it is treated as profit as in 3Q 16. Profit of $9.572M Ringgit forex gain. In Q3 17, ringgit rises. So the same $2.8M SGD and $42M USD will translate to lower Ringgit so it is treated as loss of $7.538M Ringgit. The fact is the money is still there, the " loss" is a accounting treatment becos duty free reports in Ringgit , so the same amount of SGD and USD is still sitting in the bank but their value in terms of ringgit is lower. So this is an accounting treatment and it does not mean real loss. Next. Minus away the Forex factor (which is variable becos ringgit can rise or drop.) In 3Q/16, the " real" profit is $22.295M - $9.572M = $12.7M Ringgit (during 3Q/16, the exchange rate was 3.15RM = 1 SGD), so $12.7M ringgit = $4.03M SGD In 3Q/17, the " real" profit is $4.577M + $7.538M  = $12.1M Ringgit (during 3Q/17, the exchange rate is 3.02RM = 1SGD), so $12.1M ringgit = $4.01M SGD So the real profit drop by a neglibible $0.6M ringgit only. BUT becos Ringgit rises, in terms of SGD, the profit in SGD term is considered the same. I dunno why today the investors over react? Maybe BBs trying to scare those investors who do not know the real facts?
Useful To Me  Not Useful To Me

                                                         First   1-3 of 3   Last