Silver Bird - Could Fundamental Analysis prevent you from investing into this stock?

Unaudited FY 2011 account of Silver Bird

Revenue

2011  612.746m

2010  593.507m

Earnings

2011  4.934m (Diluted EPS 1.24 sen)

2010  3.655m

Total Asset 382.970m

Total Equity 213.424m  (Net Asset per Share RM 0.52) (Accumulated Losses 44.139m)

Net Profit Margin 0.8%

Asset Turnover 1.6x

Financial Leverage 1.79x

ROA 1.28%

ROTC 1.51%

ROE 2,29%  

Cash 34.699m

Bank balances 3.704m

Cash & Equivalent 38.403m 

LT Borrowings ( 24.694m)

ST Borrowings (126.772m)

Net Debt  (113.063m)

CA 169.083m

CL 144.088m

Working capital 24.995m

CA/CL = 1.729m

Inventories  15.016m

Trade receivables 87.459m (2010:  51.168m)

Other receivables 28.204m (2010: 18.467m)

Trade payables 10.411m

Other paybales 6.732m

Net CFO (25.582m)

CFI (6.259m)

CFF 21.125m

Net decrease in cash (10.716m)

Dividend 0

Valuations

Price 20.5 sen

No. of ordinary shares issued and issuable 396.387m

Market Cap 81.23m

P/E 16,5x

P/BV  0.394x

DY 0%

Could fundamental analysis guide you from investing into this stock?


The answer is YES.  The business fundamentals of this company are extremely lousy and there are enough red flags in its accounts to warrant caution or avoidance of this stock.


Please click below to read the post by BENGRAM for a more detailed explanation.
http://www.investlah.com/forum/index.php/topic,39283.msg770490.html#msg770490