A-Sonic : What's happening?

Four employees of one of its subsidiaries, Sterling Campus Private Limited (“Sterling Campus”), has each received a “Notice to Attend Before an Inspector” from the Council for Private Education (“CPE”).

The said notice was issued pursuant to section 58(1)(c) of the Private Education Act (No. 21 of 2009).
Section 58(1)(c) of the abovementioned legislation provides that:
“In addition to the powers conferred on him by this Act, an inspector may –
(c) require, by order in writing, the attendance before him of any person within the limits of Singapore who, from any information given or otherwise obtained by the inspector, appears to be acquainted with the facts or circumstances of
the case;”


A meeting has also been scheduled between the two directors of Sterling Campus, namely, Ms Janet Tan and Ms Irene Tay, and the CPE on 19 April 2011.
Sterling Campus was registered with CPE on 20 May 2010. The registration period is valid for one (1) year from 20 May 2010 to 19 May 2011. For the 12 months financial year ended 31 December 2010, Sterling Campus registered total revenue of S$57,688 and recorded net loss of S$408,495. In contrast, the Company and its subsidiaries recorded consolidated  total revenue of US$278.425 million, and profit attributable to the equity holders of the Company of US$11.215 million.


--- Strange business to incur so much loss on so small a revenue.
--- Strange also for directors to be served the Notice to attend before an inspector.
Anyone can shed light on this?

Dont know much about the education biz but have just checked the ratios for the Group (core business is in aviation logistics) and they look enticing. PE only about 3X based on 7.5 cents share price. NAV is about 8 cents. Dividend to come is small at about 1.6% yield but at least it's something. Anyone inthis forum has been following this stock?

8-9 cents is a good level to have reached after being at 5 cents because it was placed on the SGX Watchlist. A-sonic could be a comeback kid - watch this space

A-Sonic took 3 years to digest its acquisition.
If you stripe out the profit from the sales of its subsidiary, the Company doesn't really make a lot of money last year.
Operating cashflow is also not fantastic.
The upside is huge but the risk is also not small.
Buyers beware.