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Marco Polo Marine places Indonesian yard under court-led restructuring http://splash247.com/marco-polo-marine-puts-indonesian-yard-under-court-led-restructuring/
I think she need to come out to be the milk cow Liao. I
sheerluck ( Date: 18-May-2017 18:11) Posted:
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MPM still got chance if they can still bridge the gap between the expectations of the creditors and the strategic investors to supply funds to save it through a debt restructuring and refinancing if they do find white knight strategic investors. But, frankly speaking, if they could do it earlier, they would not need to go until this step of a scheme moratorium. Best of luck MPM even if it is a very slim one now!
http://infopub.sgx.com/FileOpen/MPML_ApplicationOfMoratorium.ashx?App=Announcement& FileID=454421
Applications for Scheme Moratorium
Bye bye....MPM......See you soon Vivian Hsu.
Applications for Scheme Moratorium
Bye bye....MPM......See you soon Vivian Hsu.
Actually Marco Polo Marine (MPM) already showed tell-tale signs that it was a risky investment back in 2013 when its share price happened to start a long way decline until today. But, it is not only the sustained decline in share price that tells us something about this company. If an investor had looked at the past years financial results of MPM prior to 2013 financial results, one could have easily seen that the operating cashflows of MPM were erratic, sometimes rose by a lot and sometimes fall by a lot from year to year. But, this is still not that worrying as long as the company had remained positive on its operating cashflows.
The disturbing thing is that the capital expenditures in the years prior to 2013 were consistently much higher than the operating cashflows. This has resulted in negative cashflows for every of those years from 2007 to 2013 and the amount of negative free cashflows is by no means small with the amount of negative free cashflows more than the operating cashflows for most of the years between 2007 to 2013. If the negative free cashflows is a manageable small amount of cash outflows while accompanied by excellent growth, then it may not be that bad. However, with consistent huge amount of cash outflows every year that even the operating cashflows cannot match up to, no matter how profitable on the surface a company seems to be in growing its revenues, operating profits and net profits, it is going to meet liquidity issues when the tides turn against it.
In this case, the tides did came against MPM and it faced headwinds in its O& M operating environment. Thus now, the bankers are not willing to take the risk to refinance MPM' s bond which is coming due and it has to resort to getting other strategic investors on board and this is still not confirmed yet whether the bondholders will agree to the terms of the restructing of the debts.
Furthermore, the financial leverage of MPM also increased by a good amount in 2013 amidst a backdrop of significant cash outflows. This is another worrying tell-tale sign that the company is straining itself too much on burning cash and is still trying to further sustain itself on this high cash burn rate with increased leverage.
Well, one can argue that the company was churning out good growth in revenues and profits, so what' s wrong with taking on a high financial leverage and high capital expenditure for growth? Well, if the cash burn rate is still sustainable in view of good visibility in the cashflows returning to healthy state again in future and thereafter continue to enjoy the good healthy cashflows, then it may not be disastrous. However having said that, by having a high consistent cash outflows does put a company to walk on a tight rope. If it can balance itself well to walk to the other side without falling, then it is good. But, the constant risk is always there that one can lose balance along the way and fall from the tight rope.
The income statement tells us the profitability of a company. The cashflows statement tells us whether the company has the cash to continue with its current business and thus maintain profitability. Being able to manage cashflows well will ensure being able to still sustain itself as cash is blood. Without the blood flowing, the whole system will just collapse and die no matter how strong and well built the individual once was.
We certainly need to watch all three financial statments together and not just be taken over by one and pass a superficial judgment on a company' s fortunes. No matter how spectacular the revenue and profit income statement is, without sustainence in its cashflows, sooner or later the whole system will collapse as it lacks the cash (blood) to continue its existence. And for MPM, there were already plenty of worrying tell-tale signs that it was a high risk bet way back in 2013.
How to trade when it is already suspended?
NextEvolution ( Date: 16-May-2017 11:17) Posted:
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Next in line O&G casualty. Be careful trading this can kaput suddenly
http://www.straitstimes.com/business/companies-markets/marco-polo-marine-posts-82m-net-loss
Ok. Await her new movies!
beginners ( Date: 04-May-2017 21:28) Posted:
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I think we should worry more about ourselves than for them. Trust me, they will be alright just slightly less well off. But the same cannot be said of the poor retail investors who are made poorer if they invest in such counters.
TenPips ( Date: 04-May-2017 22:08) Posted:
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Sad for both of them. If we put ourselves in their shoes, we will know how difficult the situation is esp since she's a celebrity and will receive lots of media scrutiny, teasing, bitchy and nasty remarks like those found in such forums. Empathy is important.
Liao Liao, after married Vivian he from chairman become "chair mair" (blind) Liao
Bro maybe you got chance to see her new movie again! Lol 😂 . Just joking .
Bro maybe you got chance to see her new movie again! Lol 😂 . Just joking .
waters ( Date: 02-May-2017 00:05) Posted:
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If i not wrong, the chairman owned ard 60+% of the shares. All go horlan liao? In case of default and a
Whe it sell their assets, the creditor have 1st access right?
enjoylife77 ( Date: 02-May-2017 09:36) Posted:
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Again total wipeout for shareholders?
Marcopolo habis today' s trade halting. Another casuality. First it was Lionel Lee and now it is yet another Sean Lee? These young Lee' s seem to be in hot persuit. Who is next?
Think MPM still stuck with the lawsuit with Keppel over the jack-up rig & this one of the biggest burden other than overseas weakness in O&G
Marco Polo Marine on the brink as refinancing talks fail http://splash247.com/marco-polo-marine-brink-refinancing-talks-fail/
The most come out earn money again Loh.
sheerluck ( Date: 01-May-2017 23:24) Posted:
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Company bankrupt doesn' t mean directors would go bankrupt, coz they still drew salary. Lesser wealth definitely. Wish them all the best.
sheerluck ( Date: 01-May-2017 23:24) Posted:
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not the chairman but the ceo, Sean Lee.
the profit was due largely to the foreign exchange rates thou.
gone were the sunshine days when the marine related, o& g sector/industry were at their peak.
waters ( Date: 02-May-2017 00:05) Posted:
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