Wednesday, August 10, 2011

And Baswell Is To Be Delisted on 19 Aug

Here's a short clip on Business Times:

  • Baswell to be delisted on Aug 19
    Published: 2011/08/10

    BURSA Malaysia said trading in shares of Baswell Resources Bhd will be suspended on August 17 and its stock will be delisted on August 19.

    The company, which failed to submit its accounts on time, still has time to make an appeal on or before August 16, Bursa said.
Baswell is now trading at 2.5 sen down 3 sen!

But there's an interesting issue that needs to be highlighted once more.

Exactly a year ago, 10 Aug 2010, the following was posted: Jose Barrock And Baswell Resources

Here's the posting reposted here once more.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Blogged yesterday, Should Our FInancial Media Continue To Spin News To Drive A Stock Up? and blogged the prvious day, Should Media Continue To Spin News To Drive A Stock Up?

And I think the following comment was spot on!

  • tklaw said...
    Spinning story is an extremely profitable business. People would profit million bucks by putting out a few pages of marvellous research within few days. There is no reason not to continue such a lucrative business...
Today I want to show a consequence of such reporting.

On March 15th I wrote the following: Baswell Resources. Now I am going to paste everything from that posting here.

>>>>>>>>>>>>

Yeah, they say news and speculation could drive a stock up but sometimes it makes you wonder when a stock moves before some negative news is released.

Take this stock called Baswell Resources.

Here is the daily stock chart.




Quite hard to make any conclusion from the above chart except that there was one massive surge in January.


Which of course was driven by 'news'... can you say power to the mighty sword from our so-called financial journalist?
  • Takeover on the cards at Baswell?
    Written by Jose BarrockTuesday, 19 January 2010 12:03

    KUALA LUMPUR: Baswell Resources Bhd’s shares hit their 52-week high of 67.5 sen yesterday, before tapering off to end the day at 58 sen, which marks a 4.5 sen gain from last Friday’s close.

    The stock’s closing price is also its highest level since March 2006.

    Also, trading volume on Baswell was unusually heavy yesterday, with some 15.68 million shares changing hands, representing almost a third of Baswell’s 48 million-share base. This
    trend of heavy trading volume started last Friday, when some 4.86 million shares were transacted in the tightly held counter.
    Although not certain as yet, a takeover could be on the cards at Baswell.

    According to shareholding changes filings via Bursa Malaysia Securities, an individual Ng Min Lin emerged as a substantial shareholder in Baswell, after acquiring a direct interest of 5% or 2.4 million shares. According to filings, he had made the acquisition on Dec 24 last year.

    Ng upped his stake to 23% or 11.04 million shares after buying two tranches of 4.32 million shares each for a total of 8.64 million shares on Dec 31 last year and Jan 5 this year. Bursa announcements yesterday, however, showed that Ng had since pared down his stake to 21.9 million shares.

    Pursuant to the filings, Ng could have acquired his stake from Dr Oh Han Cheng or Dr Oh’s spouse Khoo Yew Kheng, who have been trimming their stake in the furniture company.

    Oh is the founder of Baswell, and its executive chairman, while Khoo is Baswell’s managing director. Khoo’s brother Khoo Yew Nean is an executive director of the furniture maker.

    According to Baswell’s latest annual report for FY2008, the trio collectively control some 52% of Baswell. The only other substantial shareholder in the company is Wan Ismail Wan Nik who has 10.52 million shares or 21.91% of Baswell.

    Two board appointments were also made last Friday. Tan Beng Kheng, who is the managing director of Penang-based Seng Seng Construction Sdn Bhd, and Ng’s father- in-law, Datuk Wong Kam Hoong, were appointed to the board in non-executive positions. Wong was formerly deputy minister of culture, arts and heritage.

    A check with the Companies Commission of Malaysia reveals that Seng Seng Construction is controlled by privately held Tan Kiew Seng Holdings Sdn Bhd, and Tan is a director of Seng Seng Construction.

    Seng Seng Construction suffered a net loss of RM1.9 million on RM38 million in revenue for its financial year ended June 2008.


    This article appeared in The Edge Financial Daily, January 19, 2010.

Makes you wonder... why... and how come... our journalist DARE to publish news when they dare to admit that it's not even certain! Doh!

See. The writer dared to say "Although not certain as yet, a takeover could be on the cards at Baswell." Bottom line, there's no concrete proof, yes? It's all uncertain! Why publish news that are not certain? Doesn't this makes our financial news look silly?

Which was followed by this article...
  • Baswell seals RM336m subcontract for Abu Dhabi project
    Written by Financial Daily
    Thursday, 21 January 2010 10:53

    KUALA LUMPUR: Baswell Resources Bhd, which has been the subject of intense investor attention over the past few days, has bagged a US$100 million (RM336 million) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi.

    Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development.

    The Edge Financial Daily reported yesterday that market talk over the last few days had it that a Middle Eastern job was on the cards for the local furniture maker. Investor interest in the stock had also heightened that substantial shareholding changes could prompt a takeover situation.

    In an announcement to Bursa Malaysia yesterday, Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development.

    “The MoU is consistent with Baswell’s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture manufacturing status,” said the company.

    Baswell shares were unchanged yesterday, closing at 76 sen per share with 9.92 million shares traded.

    The company’s share price had soared on heavy trading volume since last Friday. Nearly 24 million shares were traded, and the stock has seen a surge of 114% in its share price since the beginning of the year.

    Changes in substantial shareholdings fuelled speculation that a takeover was on the cards, a rumour that was promptly quashed by Baswell’s board of directors who said the announcements on substantial shareholding changes had been misconstrued.

    Baswell has seen the emergence of new substantial shareholder, Ng Min Lin, who owns 21.86% of the company. The largest shareholder in Baswell is Wan Ismail Wan Nik, who holds a 21.96% stake.


    This article appeared in The Edge Financial Daily, January 21, 2010.
LOL! The Edge Financial should had at least owned up the takeover speculation and rumour was given a massive helping hand by its own 'journalist', yes?

Anyway, this is not what the posting is all about.

This is Baswell's 5 minute charts.

Hmmm... two sudden spikes .... followed by increase in volume after the spike. Would this be the classical "pump up to dump"?

On Saturday, there was this news on Baswell.
  • Saturday March 13, 2010

    Baswell plans capital reduction

    PETALING JAYA: Furniture maker Baswell Resources Bhd has proposed a
    55% capital reduction under a plan to eliminate the group’s accumulated losses and facilitate future fund raising exercises, the company told Bursa Malaysia.
    The capital reduction means its issued and paid-up capital would be reduced from RM48mil, comprising 48 million shares of RM1 each, to RM21.6mil comprising 48 million shares of 45 sen each.
Hmmm... makes you wonder, doesn't it?

Did those 2 spikes happen because of the capital reduction issue?

And needless to say, Baswell is currently trading down on huge volume. At one moment of time, the stock was trading as low as 29 sen, down 9 sen from Friday's closing of 38 sen!

--------------------

Two comments from the posting.
  1. solomon said...
    Pump and dump?? But I think Moolah by having you at Bursa and SC will do more transparency to the market if they are serious abt CG.In Malaysia, good earning stock don't need good news. Most of the stocks in the limelight are normally Titanic to be. I maybe wrong and you are right ya.....
  2. c said...
    i like ur point , these people r 'bought ' b4 they publish the article. think , why they want u to know if something so good happen? they will buy quietly!!
Many months have passed.

Some might have made money in the stock. The unlucky ones? They probably lost a lot!

But the question, I want to raise today is... what happened to the takeover speculation?

The reporter cleverly wrote..
  • Although not certain as yet, a takeover could be on the cards at Baswell
I mean, seriously, if it's not certain, as a reporter, as a financial reporter, doesn't he have a duty to report facts and only facts?

Yeah Jose Barrock!

Here was Baswell response to that so-called 'financial reporting' (What's the purpose of a 'financial news' when the news is based on nothing but speculation? Is the purpose of the financial news to drive a stock price higher?)
  • Reference is made to the letter from Bursa Malaysia Berhad dated 19 January 2010 and the Article entitled :"Takeover on the cards at Baswell?" which appears in The Edge, Financial Daily, Cover Page and Page 4 on Tuesday, 19 January 2010 (“Article”), the Board of Directors of BASWELL wishes to inform that, after making due enquiry with all Directors and major shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect, the Board of Directors wishes to clarify that it has not, to date, received any take-over offer on the shares of the Company. However the recent announcements on the changes of substantial shareholdings in the Company may have been mis-construed as a situation involving take-over.

    At the same time, the Board of Directors of the Company wishes to advise that it was not aware of the Article prior to its publication and that the Company has neither verbally nor in writing released any information to the author of the said Article.
This is where I don't understand. Why isn't the author of the said Article being questioned?

Yeah babe, ask the bugger where he got all these sources?

Anyway... it's now August 2010. Baswell is still Baswell and Baswell made news today again but for the wrong reason.
  • Baswell ceases ops, becomes PN17 firm
    Published: 2010/08/10

    FURNITURE maker Baswell Resources Bhd (7156) yesterday said it had ceased all its furniture manufacturing operations and become a Practice Note 17 company.

    Baswell also said a memorandum of understanding signed with Hong Kong's Metroplex Resources Ltd in January had been terminated.

    The MoU was for Metroplex and Baswell to collaborate with AL-AMRY Group to design, build and instal a project for AL REEM Island mixed development.

    Under the pact, Metroplex was to sub-contract the entire manufacturing and installation of furniture and fittings worth US$100 million (RM314 million) to Baswell.
    In a filing to Bursa Malaysia, Baswell said it is trying to sell some of its properties, plants and equipment, and to formulate a comprehensive restructuring.
Ceased all furniture manufacturing operations????

huhu!

And currently Baswell is now trading at 15 sen, down some 21%!

Last but not least, here is the chart of how Baswell is trading since Jan 2010! ( Can you imagine the fortune of those speculators who believed in what was written by Jose?)




How?

Me? I pray more integrity in our financial news!

14 comments:

Mr Lonely said...

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random said...

sigh this stock got sentimental value hor?

M.A. Wind said...

Yes, that was horrible reporting, I agree. I still like them for the Corporate Governance stories though, they dare to report what others dont do, they were the only ones who dared to write my letters.

Here in Singapore The Edge never took off, CG issues are routinely dealt with in the normal papers, journalists are better, dare to write more openly, also there is even one professor Mak entirely for CG, he often comments on important issues.

Moolah said...

Like your spagetti pix on Lion Group a lot!

Hey did you read the posting on Ranhill? http://whereiszemoola.blogspot.com/2011/08/ranhills-director-buys-shares-ahead-of.html

random said...

the ranhill thingy is downright outrageous.. iinm doesnt this constitute insider trading?

Moolah said...

Finally... someone... says IT!

M.A. Wind said...

Wow, yes that looks like blatant insider trading, I think somebody has some explaining to do.

By the way, Martha did not only do insider trading, she also lied about it. I am sure she would have been convicted for the first but less than the 5 months she received now.

Still, 5 months jail, compared to Malaysia: in 20 years I only saw 2 years, 6 months and 3 months jail for 3 off the total 10,000+ directors. Malaysia must have the cleanest directors in the world, or something is wrong with the enforcement ....

M.A. Wind said...

"Like your spagetti pix on Lion Group a lot!"

Air Asia starts to look a lot the same: AA Indonesia, AA Thailand, Air Asia X, MAS ......

Moolah said...

Oh yeah... I was left speachless when I read about it.

Moolah said...

Mic, I wonder which is worse, the Ranhill one or the recent DRB meltdown case. See http://whereiszemoola.blogspot.com/2011/07/and-drb-went-into-meltdown-during.html and http://whereiszemoola.blogspot.com/2011/07/and-drb-went-into-meltdown-during.html and http://whereiszemoola.blogspot.com/2011/07/and-so-osk-explains-it-has-nothing-to.html

M.A. Wind said...

Yes, that one looked very suspicious as well, especially with the warrants expiring.

My recommendation would be to simply ban all those warrants ... :)

From a fundamental point of view, they don't add any value, only encourage short term term speculation.

Moolah said...

Fully agree on those call warrants.

They should be nuked! :)

limko said...

Call warrants and put warrants should not be banned, it just have to be properly regulated with a more equitable rules of the game that favours neither the bankers nor the punters.

We have to accept that there is an element of speculation even if you call it 'Investment' and there are people who wish, like and can afford to take the risk and speculate.

If it is not here in KLSE, they will do it elsewhere, the authorities just have to make it fairer for everyone.

Moolah said...

And so what will happen to case of DRB call warrants?

Clearly... something out of the ordinary happen.

So OSK claims... it's a trading error. FINE. No problem.

But... with the trading error... OSK comes out with a nice tidy profit.

How?

Since OSK claims trading error and if OSK has any decency then it should just void that day's closing day price, right? It's only fair, yes?