[OFFICIAL]List of companies with heavy financial engineering

[wahkao3]

[OFFICIAL]List of companies with heavy financial engineering

This thread serves to warn everyone on companies that do financial engineering.

I hope everyone can contribute and we can compile a list of such companies so everyone is warned.

lets start.....

 

[wahkao3]

Yuuzoo (SGX: AFC)

anyone can tell me what kind of nonsense is this? how they get revenue?

let me tell you what I see.
They get revenue from their franchisees (customers) not in cash, but in equity of their customers. And how they determine the value of these equity? pluck numbers out of thin air.

so their AMAZiNG revenue and profit GROWTH, is also plucked from thin air


Here's where they keep their revenue on their balance sheet.
They intend to offload these assets to investors and generate cash. Who are these investors? We dunno. But if they dont get investors to buy these assets off, do not expect this share to go anywhere.

Damm this company is a shell game. Tons of financial engineering. Dont touch!

 

[Mecisteus]

If it already sounds like a China Chinese company, you don't need to look any further. You can safely skip the company to avoid any potential land mine.

 

[Average]

can call straits times to report? let the reporters go ask the company come clean...

 

[walkingfreezer]

Agreed to avoid yuuzoo. BT already reported on their revenue recognition last week iirc.

 

[wahkao3]

take for example keppel corp. Whats the best they came out with in recent years?

An acquisition of keppel land? What so great about an acquisition? Does it create value?

Its just some financial engineering. Left pocket, right pocket. No value creation at all..... In fact, its value destruction. This kind of company, the management have other agenda. They disguise their agenda under buzz words like "synegy" "strategic" and "shareholder interest"
stay far far


if you spend money to buy another company with earnings, (almost all companies will have earnings) your own combined company's earnings will obviously go up. you are merely exchanging your cash base for earnings.

is there any value creation in this? No.
in fact, its value destruction because you kuku go and pay premium.



here is their justification. I crossed out 2 smoke and mirror ones.

the rest doesnt look much of a synergy at all....

 

[sherman1213]

Yuuzoo (SGX: AFC)

let me tell you what I see.
They get revenue from their franchisees (customers) not in cash, but in equity of their customers. And how they determine the value of these equity? pluck numbers out of thin air.

imho, unless those unquoted corporations get listed in future or they decide to pay out hefty dividends
the revenue recognised is all very subjective

 

[lbs]

Nice work wahkao

Does the cash flow statement says anything about yuuzoo?

 

[wahkao3]

Nice work wahkao

Does the cash flow statement says anything about yuuzoo?

cash flow statement? what cash flow statement? Their cash flow statement is bo tak! LOL

 

[Sinkie]

Good job there !!

Wanbao please spot me

 

[Shion]

Upz for wk3 ! Good finding !

 

[wahkao3]

Croesus Retail trust has been increasing their number of shares
from 427kk since IPO to 719kk, diluting existing share holders.....

just what are they thinking..?

 

[waxqube]

Croesus Retail trust has been increasing their number of shares
from 427kk since IPO to 719kk, diluting existing share holders.....

just what are they thinking..?

And Mapletree Logistics Trust increased their units from 594.6m during IPO in 2005 to 1108.2m in 2007 and then 1939.3m in 2008. Granted 2008 is GFC, but still... My point is that REITs and REITs-like are all about financial engineering.

 

[wahkao3]

And Mapletree Logistics Trust increased their units from 594.6m during IPO in 2005 to 1108.2m in 2007 and then 1939.3m in 2008. Granted 2008 is GFC, but still... My point is that REITs and REITs-like are all about financial engineering.

Good sharing!!@!!

 

[miketay90]

bookmarked.

 

[miketay90]

Yuuzoo (SGX: AFC)

anyone can tell me what kind of nonsense is this? how they get revenue?

let me tell you what I see.
They get revenue from their franchisees (customers) not in cash, but in equity of their customers. And how they determine the value of these equity? pluck numbers out of thin air.

so their AMAZiNG revenue and profit GROWTH, is also plucked from thin air


Here's where they keep their revenue on their balance sheet.
They intend to offload these assets to investors and generate cash. Who are these investors? We dunno. But if they dont get investors to buy these assets off, do not expect this share to go anywhere.

Damm this company is a shell game. Tons of financial engineering. Dont touch!

to be fair their revenue is not plucked out of thin air - the DCF of the franchise business have been audited and have been independently validated. although i would discount that value gao gao before I even consider using it.

also looking at the 2015 AR, one line in their CFS jumps at me, deduction of Non-cash revenue generated (54,597,000).

 

[Daimon]

Prepare to be sued

 

[wahkao3]

to be fair their revenue is not plucked out of thin air - the DCF of the franchise business have been audited and have been independently validated. although i would discount that value gao gao before I even consider using it.

also looking at the 2015 AR, one line in their CFS jumps at me, deduction of Non-cash revenue generated (54,597,000).

DCF requires a forecast of future figures. And unless there is a firm contact, that is equivalent to plucking numbers out of thin air!

 

[Sinkie]

Prepare to be sued

Financial engineering is illegal??

 

[sg_investor]

it may be interesting to plot Keppel's profit in 2015 against 2014 with or without property contribution, against the share price, can that justify whether the KeppelLand acquisition add value to the stock?