Thursday, July 21, 2011

N2N Connect - A RM15m revenue company buying a RM36 million property?

I am just wondering for an IT company with registered revenue of below RM4 million for last quarter of 31 March 2011. Current cash and some marketable securities totaling RM13.9 million, registered a net loss of RM6.5 million last year got the guts to use shareholders money to buy a RM36 million property. Although I am far from owning any of this shares and not interested to know much about N2N, I think the thought of using these money to buy a RM36 million property is disgusting. In Malay it is called "menjijikkan".

Serious Investing!

1 comment:

McKagan said...

I have met N2N's management a couple of times, and I think your comment is a little harsh. IMHO, N2N is one of the most adept tech companies Msia have to offer. Japanese publisher Nikkei seems to agree with me, evident from their 14% stake in the company.

N2N's hard work is reflected in its steady recurring income which it has built in recent years. This is down to brokers' subscription for N2N's competitive trading solutions.

With regards to the building, its their corporate office in Bangsar South which today is worth significantly more than what it was before.

I look up to your postings which points out questionable management, but I have to disagree with you on N2N