tag:blogger.com,1999:blog-17708300.post3134782407974555414..comments2023-10-25T21:25:46.183+08:00Comments on Where is Ze Moola: Why I Don't Like Private Placements At All.Unknownnoreply@blogger.comBlogger12125tag:blogger.com,1999:blog-17708300.post-54413420018285983362011-06-26T10:06:48.591+08:002011-06-26T10:06:48.591+08:00I dont like private placement too but I just want ...I dont like private placement too but I just want to bring up one point which has not been mentioned so far. <br /><br />Rights issue wont do as the private placement is to increase bumiputra holding. In a rights issue exercise, all existing shareholders can choose to subscribe and the company may end up having the same bumiputra portion.<br /><br />See link: http://announcements.bursamalaysia.com/EDMS/edmswebh.nsf/all/482576120041BDAA482578A200322B15/$File/AMEDIA-Announcement.PDF<br /><br />I didnt bother to check the bumiputra holding at IPO. I thought every IPO needs to fulfill the min 30% bumiputra equity requirement anyway. <br /><br />This means about 20% bumiputra shareholders have since sold their stakes?Ehttps://www.blogger.com/profile/15071777307988916693noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-76074004745160706372011-06-03T17:27:07.259+08:002011-06-03T17:27:07.259+08:00It's sickening to see one instance after anoth...It's sickening to see one instance after another in the local market where so much value has been destructed. And it is even more sickening to see the culprits eacape punishment, living their lavish live freely.<br /><br />Where are the so-called capital market regulatory bodies? Are they doing their job decently? Are they even awake?Mun Waihttps://www.blogger.com/profile/14878942945456628527noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-33843634086948209032011-06-03T17:09:13.966+08:002011-06-03T17:09:13.966+08:00The problem is the mindset. Many are brought with ...The problem is the mindset. Many are brought with the thinking that the public funds are nothing but OPM (other people's money) and as a listed entity, they have the right to take advantage.<br /><br />And they just don't care. As a long as they draw the big fat salary, it doesn't matter to them if the company do well or bust.<br /><br />I am sure you can name a couple of BIG name listed companies who have been losing money for the past decade.Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-22784545393636662892011-06-03T16:52:13.206+08:002011-06-03T16:52:13.206+08:00Moo,
The following came across my mind. Check the...Moo, <br />The following came across my mind. Check the logic please. Many thanks! <br /><br />Company with weak business model and unsustainable earnings should not be listed in the first place. Need funds to expand? Seek conventional means of financing via bank borrowings. In this instance, at least the Director / Management would strive to run the business well so as to generate a return in excess of the cost of funds and the ultimate redemption of loan + profit for the shareholders. Else, they have to be wound up.<br /><br />Conversely, once it become a listed entity, public funds are at risk. I wonder Is it the true intention to raise funds for expansion of business thru the capital market or to raise funds for one’s own pocket? <br /><br />Why would the Exchange allows the perceived exploitation of the listing status by promoters of some weak companies at the expense of the investing public (to contribute to the Exchange's P/L as it is not a non-profit organisation?)<br /><br />Wouldn’t this induce weak corporate governance as the worst case scenario would be for the company to be delisted. Where is the incentive to run the company well if the Directors are crooks ? It just encourage more instances of moral hazard. Yes? No?Mun Waihttps://www.blogger.com/profile/14878942945456628527noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-14915793239258454852011-06-03T11:53:06.969+08:002011-06-03T11:53:06.969+08:00K H: Thanks for pointing out the typo! :)K H: Thanks for pointing out the typo! :)Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-40234789499156278792011-06-03T11:40:48.993+08:002011-06-03T11:40:48.993+08:00"See how the value had shrunk from 43 sen to ..."See how the value had shrunk from 43 sen to 23 sen?"<br /><br />You might want to change 23 sen to 32 sen....<br /><br />I think basically in Malaysia, every entity can be bribed to look the other way including those that were supposedly there as watchdog for public interest....K Hhttps://www.blogger.com/profile/13278028686150254458noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-78479675319189659812011-06-02T21:29:10.719+08:002011-06-02T21:29:10.719+08:00Mun Wai: OMG! See http://whereiszemoola.blogspot.c...Mun Wai: OMG! See <a href="http://whereiszemoola.blogspot.com/2011/06/ta-researchs-commentary-on-amedias.html" rel="nofollow">http://whereiszemoola.blogspot.com/2011/06/ta-researchs-commentary-on-amedias.html</a>Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-33252764439431155972011-06-02T20:54:33.007+08:002011-06-02T20:54:33.007+08:00Mun Wai: For AMedia's case, yes, at this momen...Mun Wai: For AMedia's case, yes, at this moment, they have the cash and they could easily borrow money, if they wanted too.<br /><br />Why raise money thru private placement?<br /><br />And since in this example, it was to meet the min Bumi stake requirements, why didn't AMedie addressed this issue before it got listed?<br /><br />Why list and then only do this massive private placement? This is insanity!<br /><br />And why did Bursa allow the listing to go thru in the first place?Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-39464551455111398752011-06-02T20:50:48.044+08:002011-06-02T20:50:48.044+08:00Solomon: That's another solid point.
Like i s...Solomon: That's another solid point.<br /><br />Like i said 'priviliged placements'!Moolahhttps://www.blogger.com/profile/16837745401820976707noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-1236082929821527822011-06-02T20:17:56.852+08:002011-06-02T20:17:56.852+08:00This below is the call of EAH @ 0.51 made by dali-...This below is the call of EAH @ 0.51 made by dali-san last month><br /><br />http://malaysiafinance.blogspot.com/2011/04/watch-this-stock-closely.html<br /><br />May I know, should I cut loss or hold on EAH ? it is now @ 0.38cts which is > 30% down from my cost .<br /><br />can anynone answer for dali in case he refuse to give me the answer ? <br /><br />how about u moolah ? can tell or u wanna to cover yr buddy dali-san ?Verdicthttps://www.blogger.com/profile/13845454760825339051noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-9103214986408756982011-06-02T19:09:58.469+08:002011-06-02T19:09:58.469+08:00Moo,
I wonder how are they going to deploy the pr...Moo,<br /><br />I wonder how are they going to deploy the proceeds from the proposed private placement. <br /><br />As working capital? Capex? My mind starts to run wild (as usual!) :P<br /><br />I can't help but to think that they have "plans" to burn money at a greater scale. Moo,correct? wrong?<br /><br />AMEDIA had RM17.398 mil cash @ 31/3/2011. Why the need to raise funds, again? Fund raising or "fun" raising :D<br /><br />Scale of the RPTs ?Mun Waihttps://www.blogger.com/profile/14878942945456628527noreply@blogger.comtag:blogger.com,1999:blog-17708300.post-77373162962271543752011-06-02T19:00:28.176+08:002011-06-02T19:00:28.176+08:00The public did not have visibility to who take up ...The public did not have visibility to who take up the share. Only the company and the regulator know.solomonhttps://www.blogger.com/profile/15373632232861592746noreply@blogger.com