More Incredible News Flow From Kenmark!

In the posting: Kenmark: Sorry But I Was Sick

• 1. First bankers demanded some 72 million back from Kenmark.
  
  2. Then Kenmark said the MD resigned.
  
  3. Kenmark MD said he's sick. Was unconscious. Only woke up yesterday. (Apparently he claim he is still the MD)
  
  4. MD does NOT state what sickness that caused him to be unconscious.
  
  5. But... you cannot call him. Apparently family members barred all calls.
  
  6. Two executive directors from Taiwan has gone missing. MD did not state where they were.
  
  7. Apparently... a friendly party has bought a huge stake in the company. (hmm.. no changes of shareholders announcement made on Bursa. hmmm...... stock rallied yesterday (many did not know why))
  
  8. Company has NOT released its earnings.
  
  9. Company is now a PN17 stock and is currently suspended (yeah.. after surging like crazy yesterday!)
  
  10. Pricewaterhouse is contacted to determine the actual debts of the company.
  
  11. MD will only return back to Malaysia when he is healthy. Apparently he's too sick to travel.

Things have now gotten even 'better'.

Regarding Point 7. Apparently the deputy executive chairman is the buyer of the stake. (sorry. typo. Ishak is not the deputy chairman of Kenmark)

• Datuk Ishak Ismail, former KFC deputy executive chairman bought 32.36 per cent of Kenmark, a furniture maker, on June 1 and 2
  
  DATUK Ishak Ismail, KFC Holdings (Malaysia) Bhd's former deputy executive chairman, is now a major shareholder of financially-troubled Kenmark Industrial Co (M) Bhd (7030) as he bought while others were busy dumping the stock.
  
  He bought 32.36 per cent of Kenmark, a furniture maker, on June 1 and 2, as the stock hit record lows of between 3.5 sen and 4.5 sen. The group did not say who were the sellers.
  
  Kenmark also did not say how much he paid for the stake but based on the closing and last traded prices of the two days, Ishak could have spent about RM6 million. He may have even paid much less, or probably half of that, if he had bought the stake at the days' lows.
  
  Kenmark, a PN17 company, has yet to report its fourth quarter numbers for the period to March 31 2010 as its managing director and major shareholder James Hwang, a Taiwanese, went missing since last week.
  From then on, the group went into a tailspin as two banks said it defaulted on loans, named a receiver to a subsidiary while all operations ground to a halt and some 400 of its workers were uncertain of their future.
  
  Kenmark is now the subject of Securities Commission (SC) probe while Bursa Malaysia has ordered it to appoint a special auditor to ascertain if there are any irregularities.
  
  The group has hired Messrs UHY Diong as its special auditor.
  
  In 2001, Ishak was fined RM400,000 by the Sessions Court for giving false information to the SC.
  
  A former politician, he was once involved in a battle with the Lau brothers for control of KFC. Ishak was firmly in control of KFC until the Asian financial crisis hit Malaysia in 1997.
  Kenmark also named new directors yesterday. They are executive chairman Datuk Abd Gani Yusof, executive director Ho Soo Woon, and independent non-executive directors Ahmed Azhar Abdullah and Woon Wai En.
  
  Kenmark's independent directors Zainabon @ Zainab Abu Bakar and Yeunh Wee Tiong have tendered their resignations yesterday. (why ah?)
  
  "The new directors are currently assessing the current situation of the Kenmark Group and are in discussion with the receivers of Kenmark Paper Sdn Bhd to allow the re-activation of business operations at the business and corporate office at Port Klang soonest possible and restore market confidence," Kenmark said in a statement to Bursa Malaysia.
  
  The new directors also stressed that all employees have been paid salaries up to May 2010 and all payments to statutory bodies have also been made.
  
  On June 2, Kenmark said Hwang fell ill in China from May 24 and he could not be reached as his family barred all calls. The group's new directors hope that he could return by next month.
  
  As for the other two Taiwanese directors, Chang Chin-Chuan and Chen Wen-Ling who were also said to be missing, they have made contact with Kenmark. (so why they went missing? why ah?)
  
  Shares of Kenmark have been suspended since June 2 and its last traded price was 11.5 sen.
  
  Read more: Ishak now a major investor in Kenmark here

Many would be SIMPLY DISGUTIBATED with what they had just read!

Biggest question, is how much did Ishak bought the shares??? Who are the sellers????

Think about it.....

Here we have a share that was trading around 90 sen. Perhaps it was grossly over priced at 90 sen given the state of its business fundamentals, in which its poor balance sheet was clearly visible.

But the news that a willing buyer (friendly some more) suddenly appear just stinks the whole place up once again.

If the buyer was willing why didn't the buyer buy much earlier? Couldn't he bought on 31st May?

Why wait until the shit hit the ceiling? ( Nice to buy cheap, eh?)

Why isn't the sale and purchase of the shares more transparent?

This was all in the announcement posted on Bursa website: All it states is Ishak bought 20 million shares on 2nd June and 10 million shares on 1st June. Link here and here. And Unioncity Enterprises Ltd purchased 27.6 million shares. Why no price stated?

If it's an open market trade, surely people would accuse that the bad news ( chatter that apparently the MD had ran away due to banks demanding their money back ) drove the stock to almost worthless at 3.5 sen and now that the stock sank so low, a friendly buyer miraculously appeared to save the day.

Surely we are not talking about Robin Hoods here!

And to compound the matters worst, Kenmark shares miraculously rallied on the 2nd.

Yeah, later on that day, the market learned about the incredible Kenmark: Sorry But I Was Sick excuse!

Gee how nice people!

30 million shares purchased when the shares plunged into the abyss.

Go figure if Kenmark shares rallies higher.

What a wonderful capitalist world.

But seriously.... is this allowed?

Can SC allow all this?

And oh Bursa, what happen to all the QUALITY listing talk. Comeon... stopped thinking from a business perspective and keep on churning out stocks like this on the exchange. Quantity matters not when all the investing public get is mess like this.

On Star Business:

• Possible heavy losses for those hiving Kenmark shares
• Ishak is Kenmark’s biggest stakeholder
• Mystery of the disappearing MD

Kenmark still has not submitted its earnings. How? Any hanky panky? Why did the incredible surge in receivables happen? Receivables totals 248 million! What if these receivables cannot be collected? Provision of bad debts? ( see Kenmark: MD and Deputy GM 'resigns', Share Plummets Big Time!!! )

And mind you, this is a massive time bomb. If Kenmark does not submit soon, it would be suspended yet again.

And last but not least... in the Star article Ishak is Kenmark’s biggest stakeholder

• “James (the MD) called me on Monday night to help him out as he is sick. This is the company we both floated in 1997 when I was the bumiputra shareholder. However, I sold my shares a long time ago,’’ he told StarBiz

Monday night?

In the posting Kenmark: Sorry But I Was Sick

• "James Hwang in his letter has stated that he has been unwell and unconscious and was also uncontactable. He has now regained full consciousness but still physically weak," said the company in a statement to Bursa Malaysia on Wednesday, June 2.
• "It was only yesterday (Tuesday) I regained full consciousness but am still weak to travel," he said. He did not identify the nature of the sickness nor did he say when he expects to be well.Hwang will only return to Malaysia once he is healthy.Hwang also said he could not be reached by telephone as all calls had been barred by family members.

Sorry I am confused.

Ishak got the call on Monday night. If James Hwang was in China, say Beijing, the time zone would be the same as here, yes? So can I assume Monday night as in Monday night Malaysia time?

And James Hwang states he only regained consciousness on Tuesday.

Hmmm..... how?

And Ishak bought 20 million shares on Monday. See Link here

How now Brown Cow?