Monday, February 14, 2011

Masterskill - NOT that skillful after all

After my posting as below, I have gotten them right from day one:
Masterskill: Is it really that good?
FMR LLC (a unit under Fidelity Management) has been acquiring the shares of Masterskill between RM3.90 and RM4.20 per share between May to Sep 2010. Now they are selling desperately and my most recent guess is that they are selling down from RM3.80 onward to recently below RM2. Smallcap world fund has joined in the fun by selling as well. Why is FMR selling when this company has just been listed on Bursa? I guess either the investor (professional as they may think) has been conned by Masterskill or they play along with the owner, but who would you think as a professional investor would allow the public to see that they have made a mistake? On paper, they had made a mistake, hence the selling. Remember MEGB's (Masterskill) revenue is fully supported by PTPTN, hence government. Their revenue is 95% contributed from there. Do you think they are worth as much as RM800 million as at todate? Way higher than any other colleges in Malaysia (HELP, Inti and others) offering mainly nursing courses? How many nurses does the country needs? At its height, MEGB was valued as high as KPJ group, one of the largest private hospital chain in the country. Well, well, well.


Update - 11 April 2012

Now with PTPTN under contention as some of the loans to the nursing students went bad, the maximum loan that can be forwarded to these students have been reduced to RM45,000 from RM60,000.

Anyway, what do you expect the nursing students to do. Do you think they can pay back the loan with a basic salary of RM1,200? That is paying RM4,500 to RM6,000 a year without even considering interest yet.

Earlier article on Masterskill:  Not worth the IPO price?

Serious Investing!

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