Saturday, September 26, 2009

Regarding Oilcorp

Blogged previously. And OilCorp Comes Crashing Down Once More!

Well Oilcorp really crashed!

What now?

If I am stuck at this stock, perhaps it's best to reevaluate my current position. Yes? That would be the logical thing to do yes?

Here are some main issues for me to consider.

1. What has OilCorp done lately?

Well, time to dig up some past.

June 2006. A step forward for Oilcorp in fisheries

  • MOVING from oil and gas to fishing may seem a step backward for some, but for Oilcorp Bhd, the latter seems to hold more promise than what many people believe.

    The company sees revenue contribution from deep-sea fishing activity reaching in excess of RM300mil in five years, which would be far greater than what its current other core businesses, oil and gas (O&G) and property, would generate. Its O&G division is projected to earn RM200mil in revenue and its three property projects RM60mil.

Oil company going into deep-sea fishing????

Feb 2007. Oilcorp decides to do a 1 into 10 stock split!

What's the problem with such an exercise? Well, how much was Oilcorp trading back on Feb 2007? Around 1.10. And Oilcorp wanted to split every stock into 10! What's the rational? What's the point of such exercise? How does it reflect on the management? (This split was not implemented)

Apr 2007.

  • Monday April 9, 2007

    Oilcorp unit sees new RM1b contracts


    PETALING JAYA: Oilcorp Bhd subsidiary Oilfab Sdn Bhd expects to clinch RM1bil in new projects by 2009, given the industry’s bright prospects, its chief executive officer and managing director Mohamed Hazali Abu Hassan said.

    “In the current environment, we are convinced of being able to continue reaping more profits and opportunities as more offshore developments emerge,” he told StarBiz...

June 2007.

  • Saturday June 30, 2007

    Oilcorp confident of RM1.73bil Mideast contract

    PETALING JAYA: Oilcorp Bhd is confident of securing a US$500mil (RM1.73bil) oil and gas contract in the Middle East, group managing director Sunny Ng Huat Tian said.

    “Chances of winning the project are very good,” he said after the company AGM... here

Aug 2007.

  • 07-08-2007: Oilcorp wins RM290m fabrication job bby Woon Wu Lin

    KUALA LUMPUR: Oilcorp Bhd has secured its largest ever fabrication contract to the tune of RM290 million from Petronas Carigali–PTTEPI Operating Company (CPOC). Following this, Oilcorp officials alluded to the possibility of the group and other fabricators standing to benefit from other multi-billion contracts from Carigali and its umbrella contractors over the next five years...

Aug 2007

  • Oilcorp sees RM135m from sale of hotel in KL

    By Chong Jin Hun

    August 15 2007

    OILCORP Bhd stands to generate at least RM135 million from sale of its upcoming hotel in Kuala Lumpur, the second of its four planned hospitality units comprising some 3,000 rooms it hopes to build in Malaysia in the near term.

    Oilcorp executive director Pua Yow Liang said the 375 rooms in the 33-storey hotel in Kuala Lumpur could be sold for between RM360,000 and RM600,000 each. The developer will, in turn, lease back and manage the properties....

Aug 2007.

  • Wednesday August 15, 2007

    Oilcorp plans to launch three property projects worth RM1.2b

    KUALA LUMPUR: Oilcorp Bhd, an integrated holding company, aims to launch three new property development projects with a gross development value (GDV) of about RM1.2bil over the next four to five years.

    Executive director Pua Yow Liang said yesterday the projects were at KL Sentral, Genting and Pulau Indah....

Sep 2007.

  • Tuesday September 18, 2007

    Oilcorp to list property and resort arm

    KUALA LUMPUR: Oilcorp Bhd's property and resort management arm, D'Tiara Corp Sdn Bhd, is en route to listing on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE).

    Oilcorp said in a statement yesterday it had appointed international financial services firm Libertas Capital Group plc adviser for the flotation.

    D'Tiara is involved in property development, resort operation and property investment. It owns and manages the D'Tiara Beach Resort in Port Dickson....

Jan 2008

  • Friday January 4, 2008

    Oilcorp O&G division to clinch more contracts

    PETALING JAYA: Oilcorp Bhd expects its oil and gas division to clinch more projects in the next three to six months.

    Petroliam Nasional Bhd (Petronas) is anticipated to award about RM10bil worth of new projects in the next three years to a handful of qualified fabricators, according to Oilcorp group managing director Sunny Ng.

    As of August last year, the six licensed Petronas fabricators were Oilfab Sdn Bhd, Brooke Dockyard & Engineering Works Corp, HL Engineering Sdn Bhd, Malaysian Marine Heavy Engineering Sdn Bhd, Ramunia Fabricators Sdn Bhd and Sime Darby Engineering Sdn Bhd, he said after Oilcorp's EGM yesterday..

So much promises. Let's take a look at how Oilcorp performed as per its own earnings announcement back in Feb 2008. Quarterly rpt on consolidated results for the financial period ended 31/12/2007

It made some 3.5 million ringgit but pales in comparison to its last fiscal year earnings, same quarter, earnings of 6.6 million. And this comes on the back of a surging sales revenue! Sales revenue for the whole fiscal year was 456 million compared to its previous year revenue of 153 million.

And if you look into the balance sheet, the trade receivables showed that its receivables soared to 553.014 compared to previous year 284.033 million.

Hmm..... on a year-year comparison, sales soared by 303 million, receivables soared by 268 million and net profit only increased by a measly 1.358 million!!!!

Does this sound right? If a company sales increased by a whopping 303 million, why did its net profit only increase so little?

Its cash balances was 62.749 million and it had 328.699 million in loans.

Last year?

Its cash balances were 10.642 million and it had 220.376 million in loans.

Hmm... looks like its cash balances worsen.

So how?

Let me address the earlier question again.

Does this sound right? If a company sales increased by a whopping 303 million, why did its net profit only increase so little? And why did its cash balances worsen so badly despite all massive increase in sales revenue? What's happening here?

21st May 2008. All hell broke loose!

  • Oilcorp revising 2007 audited accounts

    By Adeline Paul Raj Published: 2008/05/21

    The company is in talks with its auditors to resolve a disagreement 'on a long-term contract amounting to RM110 million, inclusive of a variation order of RM20 million'

    OILCORP Bhd, an engineering services firm, may cut its 2007 pre-tax profit figure by 68 per cent due to differences with its auditors on the accounting treatment of a contract.

    It told the stock exchange yesterday that it would be amending its 2007 annual audited accounts because of a disagreement between the management and the auditors "on a long-term contract amounting to RM110 million, inclusive of a variation order of RM20 million".
    It did not provide details on the contract.

    Based on the auditors' proposed accounting treatment,
    Oilcorp's pre-tax profit would be reduced to RM7 million from RM22 million.

    This means that its pre-tax profit for 2007 would have declined by 46 per cent from a year ago instead of rising 69 per cent.

    The company is in discussions with its auditors to resolve the disagreement, and expects to take two weeks to come to a resolution.

    "Once we resolve this issue with the auditors, we expect to be able to submit the amended (audited accounts) by June 9," Oilcorp said in the statement.

    Trading in the main board-listed company's shares was suspended yesterday pending the announcement.

    It will continue to be suspended until Oilcorp submits the amended accounts, together with the auditors' and directors' reports, to Bursa Malaysia.

    The stock last traded at 78 sen....


Now if one puts into perspective and compared this to all the highly optimistic articles published on the press, how would you evaluate this company?

Look back again at the chain of events. Oil company going big time into deep-sea fishing. Billion dollar contract expectations in oil industry and billion dollar property projects and now dispute in its audited accounts.


And what has happened to Ascentland's listing in AIM?

July 2008.

  • Follow order or face penalties, Oilcorp warned

    Published: 2008/07/26

    THE Securities Commission (SC) has warned Oilcorp Bhd of "civil and criminal penalties" if it fails to comply with an order to let an auditor investigate its books.

    This came after Oilcorp appeared to challenge the SC's directive by questioning Baker Tilly Monteiro Heng's (BTMH) appointment by the regulator and invoked the threat of legal action against the auditor...

July 2008. Oilcorp – drilling for truth

  • ..... Strip away the bad blood and background noise, and you’ll find allegations and counter-allegations of misconduct, conflicts of interest, and lapses in the performance of duty. If they indeed happened, many of these are punishable offences.

    It would be reckless to dismiss these accusations and insinuations without investigations, never mind that some appear to be trivial and diversionary.

    This is why it’s great that the Securities Commission (SC), Bursa Malaysia and the Malaysian Institute of Accountants (MIA) have started probing. At this point, only they have the authority and resources to untangle this mess....

31st July 2008.

  • 31-07-2008: MARC revises status of Oilcorp notes to negative

    Malaysian Rating Corporation Bhd (MARC) has revised its MARCWatch status of its MARC-2ID/A-ID ratings on Oilcorp Bhd’s RM70 million Murabahah Underwritten Notes Issuance Facility/Islamic Medium Term Notes Facility (MUNIF/IMTN) to negative from developing.

    The rating agency said it was concerned that a prolonged accounting dispute would affect Oilcorp’s access to capital and may result in disciplinary action by the regulators...

Aug 2008. Unable to name new auditor or no one wants the job???

  • 12-08-2008: Oilcorp unable to nominate new auditor
    by Doreen Leong

    KUALA LUMPUR: Oilcorp Bhd has not been able to nominate another firm as its statutory external auditor, with the absence of a professional clearance from its previous auditor Baker Tilly Monteiro Heng (BTMH) hanging over the oil and gas services provider.

    As such, sources said pursuant to the Companies Act, the Companies Commission of Malaysia (CCM) would have the authority to appoint a new audit firm to act as Oilcorp’s external auditor....

Nov 2008. Still talks of winning billion dollar contracts!

  • Oilfab eyes RM1b deals by 2010

    By Presenna NambiarPublished: 2008/11/18

    Oilfab Sdn Bhd, a subsidiary of Oilcorp Bhd, says it targets to win projects worth RM1 billion by 2010, with more big jobs coming its way.

    The completion of work on the extension of its bulkhead (platform in which the topside and jacket is built) and seawall this month will enable it to construct structures of more than 10,000 tonnes, from 2,000 tonnes now.

    A seawall is a structure that protects the shoreline against erosion...

4th December 2008. Oilcorp submits new accounts

  • ... The value of the project was disputed earlier this year, leading Bursa to order a re-audit of its accounts.

    Meanwhile, in its filing with Bursa Malaysia yesterday, Oilcorp said the group’s audited net profit for FY07 was RM4mil compared with its unaudited result of RM15.4mil reported on Feb 29, due to adjustments such as allowance for doubtful debts, deferred tax expenses and professional fees.

Its fy 2007 earnings is now only 4 million?? From reporting an earnings of 15.4 million. it's now restated to just 4 million???? How big of a deviation is this?

December 2008. Converting debts into shares!

  • 04-12-2008: Oilcorp exchanges debt for equity, accounts cleared
    by Joyce Goh

    KUALA LUMPUR: Oil and gas fabricator Oilcorp Bhd has proposed to covert RM80 million in debts owing by its clients into a 10% equity stake in loss-making Renewable Fuel Corp Inc (RFC). The company’s long-overdue accounts for the financial year ended December 2007 also passed the scrutiny of its auditors and were finally submitted to Bursa Malaysia.

    In a statement to Bursa yesterday, Oilcorp said its indirect wholly owned subsidiary, Oilcorp International Limited, had entered into a conditional agreement for the proposed subscription of 2.2 million preferred stocks in RFC to be
    satisfied by the conversion of debts owed by Plant Biofuels Corporation Sdn Bhd (PBC) and Optimis Tegus Sdn Bhd of RM40 million each.

    These debts are due to Oil-Line Engineering & Associates Sdn Bhd (OLEA), a wholly owned subsidiary of Oilcorp.

    RFC is involved in the manufacturing and distribution of bio-diesel and blended diesel fuels in the US. It posted a net loss of US$1.7 million for the financial year ended Sept 30, 2008, mainly due to administrative expenses. The company was incorporated in September 2007...

And RFC which was the root of all accounting issues posted a net loss of US$1.7 million.

And Oilcorp does a debt into equity deal with RFC?????

11th December 2008.

  • 11-12-2008: Oilcorp shares plunge on resumption of trading

    KUALA LUMPUR: Oil and gas fabricator Oilcorp Bhd saw its share price tumble by almost 50% after it resumed trading following its suspension in May this year for failing to submit its audited accounts for the financial year Dec 31, 2007.

    The accounts could not be submitted as the management of Oilcorp and its auditors were in disagreement over the contract value of a job secured by the company to build a biofuel plant...

Made two blog postings on that day. Regarding The Plunge Of OilCorp Shares Today! and OilCorp and Its Trade Receivables

Oilcorp share price down 15%

  • .... Under the PN17 rules, the company is obliged to regularise its financial conditions within a certain timeframe or face delisting.

    Oilcorp also said it did not have a formal regularisation plan at present, but it would shortly appoint a principal adviser to formulate such a plan. It added that it would continue to negotiate with its lenders.

    On Friday, it said the interest payment was part of the facility agreement between EON Bank Bhd, Capone Bhd and Oilcorp under a primary collateralised loan obligation (CLO).

    “The company had on Sept 15 written to Malaysian Trustees Bhd to seek indulgence of time of up to one month from the due date to remedy the matter,” Oilcorp said, adding that the lender and trustee had yet to declare Oilcorp in default under the facility agreement.

    If such declaration of default were made, the CLO would be immediately payable together with the accrued interest, it said, adding that such default would impact business, financial and operations.

    Oilcorp expects to resolve the issue if given the indulgence period, as it is pursuing the payment of receivables. The options available to lenders would be to issue legal proceedings against the company.

    The company is seeking legal advice as to whether such a default constitutes an event of default under any other loan agreements.

    “The directors are unable to form an opinion that the company will be able to meet its debts as they fall due and accordingly the company is not solvent,” Oilcorp said.

    Last Friday also saw the resignation of two of the company’s non-executive and independent directors Tuan Raime Unggi and Sim Ti. They are also members of the audit committee. Oilcorp now has only one independent director.

    The company, which is involved in oil and gas, special projects, hotel, resort operation and property investment, and deep-sea fishing,
    is heavily geared with net debt of RM421.8mil as at end-June.

    Malaysian Rating Corp Bhd (MARC), in an email reply to StarBiz, said Oilcorp’s liquidity position was very weak and it had limited options to stabilise its credit profile.

    Oilcorp had relied on its moving receivables from oil and gas majors as a source of liquidity, it said, adding that the company was unlikely to be able meet its obligations unless it quickened its trade receivables collection, or rely on external support.

    The rating house had recently downgraded Oilcorp’s RM70mil Murabahah underwritten notes issuance facility/Islamic medium-term notes facility (Munif/IMTN) to MARC-4ID/BBID from MARC-2ID/A-ID.

    Oilcorp failed to deposit the balance of RM10mil into the designated accounts for the Munif/IMTN facility due on Sept 7, before the RM20mil redemption on Oct 7.

    “MARC has been informed that the sole bondholders of the Munif/IMTN have granted indulgence of up to three months to Jan 7, 2010 in order to meet the sinking fund due on Sept 7 and redemption due in October,” the rating house said.

    Oilcorp posted a wider net loss of RM1.5mil for the second quarter ended June 30 versus RM1.02mil in the previous corresponding period, as revenue fell 15% year-on-year to RM69.5mil.

    Earlier this month, subsidiary Oilfab Sdn Bhd secured a RM36mil job for Brownfield Retrofit Project from Carigali Hess Operating Co Sdn Bhd.

    Oilcorp had previously delayed its 2007 audited accounts due to disagreement between the management and the auditors over the value of a contract. The management, when contacted by StarBiz, declined comment.

MARC's original press statement was published on Business Times.

  • MARC downgrades Oilcorp's RM70m Islamic debt

    Published: 2009/09/12

    MALAYSIAN Rating Corp Bhd (MARC) has downgraded Oilcorp Bhd's RM70 million Islamic debt to "BB" from "A-" due to concerns that it may not be able to settle the debt.

    Oilcorp, which is involved in oil and gas engineering, property development and deep sea fishing, has failed to deposit RM10 million into an account on September 7 to repay part of the debt due on October 7.

    It needs to pay back RM20 million on that day, MARC said in a statement.

    Oilcorp had identified certain receivables, primarily arising from variation orders, to make the September payment.

    the group has failed to make any notable progress on collection of its stagnant receivables amounting to RM347.8 million in the first six months of 2009 and its receivables turnover increased to 567 days,"

    MARC said Oilcorp has no other sources of potential liquidity apart from outstanding receivables that it may rely on to meet the upcoming obligation.

    Nonetheless, Oilcorp has got a time extension to make the sinking fund payment from its sole bondholder.

    Oilcorp made an unaudited loss before tax of RM0.5 million for the first half of 2009 on the back of falling revenue.

    Net cashflow from operating activities during the period was negative RM20.7 million.

    MARC could downgrade the debt further if Oilcorp could not find other sources of repayment closer to the October redemption deadline.

How would one evaluate what Oilcorp has done lately?

Take away all the contract awards, and the accounting issues, what does one have?

Let's look at MARC assessment. Net cashflow for the period was negative rm20.7 million, company not making money, and now, as per Star Biz article, "Oilcorp failed to deposit the balance of RM10mil into the designated accounts for the Munif/IMTN facility due on Sept 7, before the RM20mil redemption on Oct 7. "

Oct 7 comes very fast!


2. What about Oilcorp the stock?

As we have seen time and time again, stocks don't usually follow its fundamentals. Stocks do fly without wings, just like Peter Pan!

So for one that is stuck in Oilcorp, perhaps with the current incredible bullish market undertone worldwide, one feels that perhaps Oilcorp could see some sort of bounce, for they argue nothing could go down forever.

Yes, there's a chance that one could see a technical rebound in the stock after falling so drastically.

But then, there's still a chance that Oilcorp could go down much, much more!

Why not?

Because since Oilcorp is now a newly designated PN17 stock, chances are more that Oilcorp could go down much more! (Well here's what one can go. One can dig up all the PN 17 stocks and check their performances during the early stages after being designated as a PN 17 stock. What do you see?)

And it's not easy for one to get out of the PN 17 status.

Companies are designated as a PN 17 stock for a reason and the reason is that the companies are rather extremely poor in its fundamentals. Remember MARC statement, company is in a negative cash flow of 20 million! Company has huge debts due and the company not making money.

Collecting of debts is always possible but let's look at MARC's statement again, "the group has failed to make any notable progress on collection of its stagnant receivables amounting to RM347.8 million in the first six months of 2009 and its receivables turnover increased to 567 days,"

Receivables turnover increased to 567 days!

What kind of receivables are those?

567 days and Oilcorp could not collect.

How do you rate Oilcorp chances of collecting these debts in the near future?

Unable to collect these debts is one thing but the longer it remains un-collected, sooner rather than later, Oilcorp needs to re-classify these debts.

And when it's reclassified, it's BAD DEBTS. And bad debts equates to accounting losses.

Consider this. Oilcorp's current market cap at 17.5 sen is some 38.420 million.

And what is the size of Oilcorp's receivables? Some 489 million!

What if just half of its debts is reclassified as bad debts and into accounting losses? Half would be some 244 million! Which is more than Oilcorp's equity!


Huge mess, yes?

If Oilcorp was not in such a deep mess, surely it would have wanted to be designated as a PN 17 stock, yes?

And remember that under the PN17 rules, the company is obliged to regularise its financial conditions within a certain timeframe or face delisting.

And what if the stock is delisted?

How then? Would you rate your chances betting on this stock?

And given the fact that there are so many other stocks, surely one have to ask, "Why bet on this stock? No other better stocks to bet on?"

3. Any sell down in shares by the major shareholders?


Notice of Person Ceasing (29C) - NG HUAT TIAN
Changes in Sub. S-hldr's Int. (29B) - PRAMADDUN HOLDINGS SDN BHD
Notice of Person Ceasing (29C) - GENESIS ACRES SDN BHD

Vote of confidence?

And if one is still a shareholder, how would one feel? The smarter insiders, had already cashed out before the 'bad' news.

4. What to do now?

Is it too late to consider the fact that this is a terrible mistake to 'invest' in Oilcorp?

Consider this statement again from Mr.Soros... "I'm only rich because I know when I'm wrong."

Is it too late to sell?

What if the stock goes below 10 sen?

Yes, one could hold. One could bet that Oilcorp could recover one day.

But when you consider all the issues mentioned so far, how do you rate your chances?

What if Oilcorp do not recover?

What if Oilcorp receivables are classified as bad debts?

What if Oilcorp is delisted?


solomon said...

Again, we are not sure where the receivables are from, I mean which sector?

Insider trading, owner cash out before the PN17 news?? There is one day apart for the CLO default before the PN17 announcements. Should the regulation be more robust in announcement/declaration?

My take is to cash out at this level, unless there is a genuine white knight. Rationale is simple as if you could not collect back the receivables for 1 1/2 years, do you think you can do it today or tomorrow?

Enter when there is continuous results turnaround and management changes.

Moola, what is your take?

Moolah said...


"Should the regulation be more robust in announcement/declaration?"

My view? I think they should!

Regarding the receivables. I have strong doubt and if I have to bet, I do think there's a strong chance that we see a portion of the debts be classified as bad debts.

Moolah said...

Tuesday September 29, 2009
Oilcorp offers valuable lessons
Comment By Errol Oh

KUALA LUMPUR: OILCORP Bhd is in trouble.

How else do you describe a PN17 company?

The principle here is that a listed company must have the financial condition and level of operations that justify the continued trading in its securities.

If it does not, it is classified as a PN17 company and faces the threat of being delisted.

Oilcorp became a PN17 company on Sept 23 because it failed to make a RM1.6mil interest payment due on Sept 17 and it could not provide the exchange with a solvency declaration.

The company said it did not have sufficient funds to settle the amount because its clients delayed the payment of “certain large receivables”.

In addition, on Sept 11, Malaysian Rating Corp Bhd downgraded its ratings on Oilcorp’s RM70mil Murabahah underwritten notes issuance facility/Islamic medium-term notes facility because of the deterioration in the company’s liquidity position.

Two weeks later, two of Oilcorp’s four independent directors stepped down.

The two, who were appointed to the board just over a year ago, were also members of the threeman audit committee.

This, too, is not a comforting development.

It is now up to the management to ensure that the company’s financial condition is regularised in time to avoid Oilcorp being booted out of the bourse.

Otherwise, many shareholders may well end up with losses because the securities are no longer traded on Bursa.

It is not rare for listed companies to sink into financial distress, but few raised red flags as glaringly as Oilcorp has done in its six years thus far as a listed entity.

It made its stock market debut in August 2003 after taking over the listed status of Abrar Corp Bhd.

In March 2005, the Securities Commission (SC) directed Oilcorp to reissue its 2003 accounts because the consolidated financial statements had not been prepared in accordance with certain approved accounting standards.

In response, the Oilcorp board said the overstatement of the company’s revenue and profits was unintentional.

“The mistakes were attributable to the company management’s misunderstanding and/or misinterpretation of the relevant approved accounting standards in respect of the above matters,” it said in an April 2005 announcement.

In June that year, Bursa publicly reprimanded Oilcorp for its failure to ensure that the original 2003 accounts were “factual, clear, unambiguous, accurate and succinct to enable investors to make informed investment decisions.”

Oilcorp was again in the eye of an accounting storm last year when the management and its then auditors, Baker Tilly Monteiro Heng (BTMH), were engaged in a public dispute over the accounting treatment of a contract to build a biofuel plant.

BTMH said it could not obtain sufficient evidence to support the contract value asserted by the management.

Thus, the auditors issued a disclaimer of opinion on the company’s 2007 accounts, which would have pushed Oilcorp into PN17 status.

The management sought to amend the accounts and replace BTMH with Horwath.

The shareholders voted for BTMH’s removal at an EGM, but Horwath did not accept the appointment, saying BTMH had not given professional clearance.

The Companies Commission of Malaysia then stepped in and appointed a third accounting firm to re-audit the 2007 accounts. Oilcorp finally submitted to Bursa its reaudited 2007 accounts in December 2008.

Bursa penalised Oilcorp twice in connection with this episode – the first for not making an immediate disclosure about BTMH’s disclaimer audit opinion, and the second for the late submission of financial statements.

Moolah said...

cont.... Bursa officials have said the exchange does not merely wait for a company to trigger a PN17 criterion.

The exchange looks out for early warning signs and takes steps to try and steer the company in the right direction. Has this been the case with Oilcorp? If so, why has the company continued to march into financial problems?

Of course, it is not the stock exchange’s job to avert a business failure, but has enough been done in the past to address any shortcomings in the company’s stewardship?

Also, one cannot help but wonder if Oilcorp’s troubles would have come to this point if regulators, such as the SC and the Malaysian Institute of Accountants, had played a more visible and decisive role in ruling on the management’s highly unusual step of pushing for a re-audit of its 2007 accounts.

The murkiness of the controversy makes it hard for investors to decide if the audited accounts are indeed a reliable aid in making informed investment decisions. Some of them may have well bet the wrong way