Tuesday, October 21, 2008

Ezra...Makes Ezlink cards???????

We went to a beefy barber today and he asked about Ezra Holdings. He said that he is bullish on it and guess what...he thinks Ezra makes the EzLink cards used on buses. Cool...? So for the benefit of our beefcake barber, we decided to write something about Ezra.....anyway its financial statements are relatively recent too (announced in Oct) so why not?

OK....we noted that Ezra issued some notes, so we immediately looked at the interest they have to pay with it ( after the saga of ferrochina's 13% interest!) to check for sanity. 5.285%...Ok pretty reasonable and since its payable on 2011....pretty decent!

Income Statement (ABOVE)

Gross Profit Margin: 29.6%. ( pretty decent baby...muaks)

Net Profit Margin: 12.4% ( OK...so so...ma ma hu hu in our opinion) Take note that we deducted "Other operating income, net" as we deem it as a one off thingy, not really happening in the normal course of business. See below footnotes about this line item. If we had not deducted this one off thing, it would have skewed this analysis, we think.....

Footnotes (ABOVE)

Balance Sheet ( ABOVE)

Debt Repayment muscle ( like our barber with his rimpling,sexy, hot, veiny, shiny muscle) : CA greater than CL. Current ratio ( Jargon Alert! It just means CA/CL lah)=1.46. ( Sounds pretty good...Mr Beefy Barber you may not know what you invested in but you sure punted right man...)

Cash Flow (ABOVE)


Money in Money out: Cash Flow from operation is positive BUT after deducting purchase of fixed assets, its negative. The Free Cash Flow is negative. We deduct this as based on the footnotes above, it is part of maintaining the normal business of Ezra.

Worth of the Company per share (ABOVE)
Worth of company per share: 63.81 US cents. Last done price on 22 Oct = S$0.6. (Ok cheap......)

Ezra's business is affected by the above factors. (This is taken from the prospectus). So see for yourself how the prospects of this industry is gonna be! Just use some common sense....

And for the sake of our punter barber, Ezra provides offshore support vessels and services for the offshore oil and gas industry, NOT EzLINK cards! ( Damn Citigroup's commercial is really effective....we can't sleep now!)

Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team

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