Tuesday 24 May 2022

Securities Commission & EPF : Where's Your Mama Gone ?

is  a  classic from  Scotland's  Middle of  The Road, armed  with a slew of top ten hits, were seen in the early 1970's  as the chosen ones  to be the dominant voice of pop music of that era,  until a Swedish quartret by the name of ABBA showed up

IN the case of SERBA DINAMIK,  the impression that I get is  we are harping on  the wrong set of people ie the main drivers of  the company.   

Where's your Mama gone
Little baby, Don?
Where's your mama gone?
Far, far away
Far, far away-ay-ay-ay-ay

Where's your papa gone
Little baby, Don?
Where's your papa gone?
Far, far away

Far, far away-ay-ay-ay-ay

WE should start with the Securities Commisson  and Bursa Malaysia,  especially the people who were on  the initial public offer panel. 

SOMEONE  should ASK the people at the Securities Commision  and Bursa Malaysia,  how did Serba Dinamik  get listed despite having 

 negative owners earnings since 2013 ?

The whole concept of owner earnings designed and perfected by Warren Buffet gets straight to the point,  that actually matters,  namely how much cash falls into the business owner’s pockets.

Net income and EPS is all very nice under accounting principles, but the actual Riinggit value that the business owner receives at the end of the day/month/year is much different.

This is why Buffett calls it owner earning.  So basically if the owner earning is negative every year,  one can safely  say,  either company not making profits at all or very very thin profits.

ONE assumes, that EPF did so in the name of good governance. If indeed that is the case then EPF,  must in the name of good governance  tell the world what it has done with the remaining 4.9 per cent in Serba Dinamik?

THAT, to me in itself is  BAD GOVERNANCE