BGYEAR- a nasty surprise!

BGYear broke to a new low this morning on news that the company has to provided for a loss of RM29.6 million for WIP that is unbillable & chargeable to customers. The company's latest financial result is QE30/6/2012 where it incurred a net loss of RM13.68 million on a revenue of RM72.5 million. Its NTA per share stood at 54 sen. If it takes the entire loss of RM29.6 million & this is not offset by profit from its operation or other income, BGYear's NTA per share as at 30/9/2012 could be negative. For more, go here & here.

Chartwise, we can see the selldown in the first 10 minutes of trading. With a negative networth, BGYear will have to undergo a deep capital reduction & a substantial recapitalization exercise. It is advisable to avoid this stock.


Chart: BGYear's weekly chart as at Nov 20, 2012_9.10am (Source: Quickcharts)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BGYear.