Best World

Selling pressure remain very high. Why BW not doing share buyout if it is undervalued now?

Did any Foreign Funds invest in Best World? If Best World shares are HELD by FOREIGN FUND(S), check OUT *BULL in MIND* PERFECT PROPHESY forum.

So what if they are? They must be very disappointed to see huge cash sitting there doing nothing!

1. Today Price = $0.28 2. Net Cash = $0.18 3. Share Price exclude Cash = S$0.10 4. Forward EPS = 3.7cents (9mth EPS= 3.08cents) Forward PE (exclude cash) = 10 cents / 3.7 cents = 2.7X. Forward PE (with cash) = 7.5X. Is this price reasonable? Taking into consideration that there is ONLY S$280,000 long term liability and mainly other current trade and other payables which can be covered by current assets. Judge for yourself....

During the CNY visiting, it was a surprise to hear that quite a number of employees did not have bonus for 2009. With the reduction in disposable cash, sustainability of MLM business comes into question. That is probably the reason for the huge cash reserve. When economy actually recovers by end 2010, prospect will be better for MLM company.

Q3 was bad. Q4 may not be good either. Hence use Q3 eps x4 should be more logical. The fact that they are holding on to huge amount of cash for YEARS doing nothing doesn\'t make any sense at all. If coy return 18c to shareholders then I agree that 10c looks attractive. Else, it looks expensive!