Green Packet: High Receivables

It is not the first time GPacket's CEO, Puan Chan Cheong comes out and explains about the company high receivables. FY2006 receivables jumped 155% year on year when the revenue jumped by 151%. It is contributed by the high growth rate GPacket enjoys, which means that receivables would rise accordingly.
Puan also mentions that the major receivables for the group are from the big names like China Telekom, Hewlett-Packard, Lenovo, Dell, Sony, RHB Bank and Samsung. Looking at the profile of its trade debtors, it is almost impossible they will not pay to GPacket for the services rendered and goods sold. It should be a another relief for the investors as Puan has came out and explained further about the high receivables.
Meanwhile, four out of five analysts polled on Bloomberg are still calling a 'buy', with target prices raning from RM4.90 to RM6.40. At last Friday's RM4 close, the lower range of analysts' target prices implies a potential upside of 22.5% at least.