It was somewhere in last Nov that I wrote a short article on why Marco Polo could potentially be a candidate for bankruptcy.
Now as i look at it again, the share price has drop to 5.5 cents with a total market capitalisation of under US$12m. The recent quarter, it reported a net profit of in excess of $3m but the bulk of it came mainly from fair value change in foreign currency movements. On the other hand, cash & cash equiv has drop precipitously from $10m to down to $4m in the lastest report.
This company is indeed acting like a walking dead zombie where no one is willing to touch it with a ten foot pole. The CEO fortune has clearly turn south since his glamorous marriage with his celebrity taiwanese wife.The only that keep him on his seat is that his father own more than 50% of the distressed company.
All this is going on with the backdrop of the impending legal tussle with Sembcorp Submarine on the construction and handover of an "abandoned" oil rig. It is also noted that the CFO left the company last year.
This is a case of a distressed asset that could be betted on to make a fortune or lose yoour pants!Any takers?Not me at this point in time.
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