Stocks’ futures on a knife edge

February 15, 2011 | 16:38

(0) user say

Some listed stocks are at risk of being de-listed because of companies’ loss-making performances.

illustration photo

For instance, wholly Taiwan-backed company Full Power JSC (FPC) suffered losses for three straight years which means its stock, which had postponed its listing since May 2010, could be eventually forced to de-list in accordance with Vietnamese stock market’s regulation.

Under Vietnamese stock market regulation, listed companies which post loss for three consecutive years will be forced to delisted.

Besides FPC, state-owned enterprise ceramic tile producer Vitaly JSC (VTA) posted losses for 2008, 2009 and the first nine months of 2010, with losses of VND4.7 billion ($227,000), VND34.5 billion (1.67 million) and VND28 billion ($1.35 million), respectively.

Meanwhile, Vitaly in the end of July 2010 had expected its loss for 2010 at VND17.42 billion ($841,000), which almost means the VTA’s listing must be end on the HNX.

Tribeco (TRI), or Saigon Beverage JSC, is also raising concerns among investors as its continuous loss-making results.

In 2008, the drink producer posted a loss of more than VND146 billion ($7.05 million), despite its profit of VND750 million ($36,230) for this year’s first nine months. In 2009, the company continued to announce loss of VND82.29 billion ($3.98 million), while planning to profit VND17 billion ($821,000) in the beginning of the year.

In the first six months of 2010, Tribeco announced initially loss of VND40 billion ($1.93 million). The company, however, had immediately transferred some losses to its affiliates, which helped the final report becoming profiting VND42 billion ($$2.03 million).

Market watchdog said it would warn listed companies which suffered losses in 2010 and those companies would be named. The shares of Marina Hanoi (MHC), Viky Plastic Corp. (VKP), Faquimex (FBT) and Basaco (BAS) are on this “black-list” due to their poor performances.

By Hai Linh

vir.com.vn

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional