N2N

In investing, generally there could be divided into 2 groups of people. The first group is invest based on fundamentals and rationality and the second group invest/speculate based on “Insiders’ news”…etc. While choosing which type of investment method is personal preference, one should always aware of the pros and cons of the method.

In the blog of Malaysian Finance dated 6^th April 2007, the writer indicates that he/she personally would not sell N2N shares if not passing RM 3 per share mark. (“I personally won't be selling till it goes past RM3.00.”)

Let’s do some examinations before you decide to put your hard-earned monies into N2N shares:

Market cap as at 6^th April 2007: Share price (RM) P/E

N2N at RM 667 million 2.24 66.08

MEMS at RM 451 million 0.69 32.24

EBWorx at RM 138 million 0.60 18.63

MQTech at RM 60 million 0.315 8.36

Microlink at RM 57 million 0.45 8.89

SMRTech at RM 34 million. 0.34 5.82

N2N, EBWorx and Microlink involve in similar industry, ie: financial solutions to financial institutions.

Gearing for N2N, MEMS, EBWorx and Microlink is 0 or near 0, while their ROE is double digits.

P/E for Yahoo is 61.46, Google at 47.44.

Once upon a time, there was a lady attending the party. She got to rush back to home before clock reach at 12 midnight otherwise a pretty clothes would turn back to ugly and old clothes. She is lucky enough because she left a pair of glass shoes that lead a prince to find her and lastly she becomes a princess. Will an investor/speculator of N2N has a luck like this lady? While a lady has a clock to tell her when the time is reaching, the one who attend the party of N2N do not have this privilege.

With P/E of 66.08, do a valuation of N2N at RM 2.24 per share justifies for you to invest on it? You decide……