Amedia stock PE Ratio is very low, but does worth?

Amedia PE ratio is 8.1 (Dec 2010).
Growth is 100% (2011) PE ratio 4.1x, 71% (2012) PE Ratio 2.4x.
No net gearing and Amedia dividend yield is zero.
The above is using PEGGY Method to evaluate and the figures are by Philip Capital.

With the 35% additional shares due to proposed private placement, then the figures will be different.
2011 PE ratio will be 5.5x and 2012 will be 3.2x.

I have few questions. How Amedia can get so high growth rate. The growth rate are totally different from analysts forecast during IPO in January 2011.

Comparison on Amedia EPS 2012 forecast
RHB RM0.053 (forecast made in January 2011)
If we adjust for 35% proposed private placement, then the EPS will be RM0.039
TA Securities RM0.06 (forecast made in December 2010)

TA Securities RM0.11 (forecast made in May 2011)
TA Securities RM0.08 (forecast made in Jun 2011, adjusted for proposed 35% private placement)
Philip Capital RM0.12 (forecast made in June 2011)
Philip Capital RM0.09 (forecast made in June 2011, adjusted for proposed 35% private placement)


As you can see, during Amedia IPO, the earnings forecast by TA or RHB was just about RM0..06. Then slowly TA revised the earning upwards.

In Jun 2011 TA securities revised the earnings from RM0.11 to RM0.08 due to Amedia proposed private placement of up to 35% of the total issued paid up capital.


Why can have so high growth farecast within this few months?

Another question on Asia Media Group Bhd, why they are having proposed private placement of up to 35%? Why have so huge private placement? Any corporate governance issue?


For info, Amedia major shareholder is Wong SK Holdings Sdn Bhd.


Based on the above figures, if you trust that they can have so high growth? Then this stock may be attractive due to low PE ratio. But you must be remember that probably no dividend and whether you may get another sudden shock just like the 35% private placement.

You think they can have high growth?