W Corp RTO -- YuuZoo

Hello. Is anyone looking at Contel, which is going to be RTO by YuuZoo? The issue of new shares to YuuZoo is at 5 cents and values YuuZoo at S$582 million. YuuZoo has been reported to earned USD7 million in 2012, so that pegs the PE at around 65X. Reference: www.nextinsight.net/index.php/story-arch...mes-on-track-for-rto

In 2013, the net earnings is supposed to be much higher. Let's say 50% more, which is USD10.5 million, resulting in a PE of 45X current year earnings (forecast).

Looks expensive compared to conventional businesses. How to get a handle on this. Obviously, the investment bankers have priced the RTO somewhat rationally or the stock will dive in trading. But still... with a PE of 45X.... Unless the FY2013 earnings is much more than 50% growth. Even at 100%, the PE is about 35X. That's why I am asking if anyone can shed light on this ....

Looks like a trading stock. So no need to analyse so deeply the figures . LOL.

At 7.8 cents, it's still expensive on a FA basis. Trading wise, maybe worth going in. To be safe, may go in at 7.3 cents. LOL

YuuZoo CEO on Bloomberg TV.

www.bloomberg.com/video/we-re-actively-l...ZRL64RXC0v5Z2pA.html

Six months ago, I said the stock was expensive at 7.8 cents. The stock has since plunged to 5.6 cents, a loss of 28%.

I also had a forecast of 2013 earnings.... but in The Edge article this week, the 6-mth earnings of Yuuzoo was reported to be only 676K USD. Only those peanuts?

It's a bad fall compared to US$5.5 m in full year earnings of 2012!

Advance Opportunities Fund sold 1 m shares at 5.5 cents. The Fund is connected to the deputy chairman Tan Choon Wee who is the man driving the RTO.

Advance sold another 825K shares today for average of 5.66 cents. Not a good sign.