tag:blogger.com,1999:blog-177083002024-03-19T11:09:02.122+08:00Where is Ze MoolaUnknownnoreply@blogger.comBlogger3141125tag:blogger.com,1999:blog-17708300.post-74842552509880877612014-03-12T21:11:00.000+08:002014-03-12T21:24:31.132+08:00Reports by financial journalists must be fair, accurate and responsible !!!!On the EdgeMalaysia: <a href="http://www.theedgemalaysia.com/business-news/279915-reports-by-financial-journalists-must-be-fair-accurate-and-responsible-sc.html" target="_blank">http://www.theedgemalaysia.com/business-news/279915-reports-by-financial-journalists-must-be-fair-accurate-and-responsible-sc.html</a><br />
<br />
<ul><li><b>Reports by financial journalists must be fair, accurate and responsible:</b> SC<br />
Business & Markets 2014<br />
Written by Bernama <br />
Wednesday, 12 March 2014 18:46<br />
<br />
KUALA LUMPUR (March 12): Dissemination of information by financial journalists must be done in a fair, accurate and responsible manner, says the Security Commission (SC).<br />
<br />
The SC was referring to a regulatory settlement, entered into with a Malaysian media editor on October 2013, <b>in connection with news published on an online news portal, on Aug 10, 2012.</b><br />
<br />
<b>"The price sensitivity of the subject matter of the article, coupled with the recklessness with which the article was written, without any verification with the SC, had created unwarranted and steep fluctuations to the involved company," </b>it said in its 2013 annual report today.<br />
<br />
Meanwhile, on safeguarding the capital market against money laundering activities, the SC said that it is committed to ensuring that capital market intermediaries implement the highest standards of preventive measures, to counter the problem.<br />
<br />
"We continued to facilitate and reinforce a high level of compliance by licensed intermediaries, with the SC's guidelines on Prevention of Money Laundering and Terrorism Financing.<br />
<br />
"We are also observing global standards and best practices, in relation to this increasingly important scope of the SC's supervisory function," it added.</li>
</ul>Aug 10, 2012?<br />
<br />
<a href="http://whereiszemoola.blogspot.com/2012/08/and-sources-strikes-big-at-e.html">And The Sources Strikes Big At E&O</a><br />
<ul></ul><br />
---------------------<br />
<br />
Far too long I have been highlighting the <a dir="ltr" href="http://whereiszemoola.blogspot.com/search/label/According%20To%20Sources">According To Sources</a> issue on this blog. After a while this blog gets caught in a repetitious cycle of repeating and repeating and repeating itself. Is like, do you guys and gals really care? Or perhaps it only matters if it happens to us ( I do hope not). I just don't know.<br />
<br />
As mentioned before:<br />
<ul><li>Yeah, our financial news can be really incredible at times. Many a times, a story will be spun by our financial news wizard reporters. The way they write, the way they spin the story around and around, they can really make any given stock sounds soooooo sexy.</li>
</ul>And sexy stocks do sexy stuff. The stock prices soar.<br />
<br />
Think about it.<br />
<br />
I write an article, I throw in the 'according to sources' this and that and that is going to happen. It's going to make Fly Kacang Fly Bhd fly!<br />
<br />
Punters read the story, they treat those words as gold.<br />
<br />
They get on the phone, they call their remisers and orders truckloads of the Fly Kacang Fly stock. Or they just let their fingers walk the talk by keying their truckloads of the stock via on-line trading.<br />
<br />
And as long as they make their money, they don't care whether the story is really true or whether the story just cooked up to seduce them to punt the stock<br />
<br />
Take for example, the last posting made on this <a dir="ltr" href="http://whereiszemoola.blogspot.com/search/label/According%20To%20Sources">According To Sources</a> issue: <a href="http://whereiszemoola.blogspot.com/2012/03/and-according-to-sources.html">And According To Sources ....</a> . Did that sexy story came out exactly as what the so-called sources clam??<br />
<br />
And I said many times, anyone could a source of imformation. The Fly Kacang Fly's mak cik who brings the tea for the Boss could be a source of information, yes? The toilet cleaner also could be one. Anyone in Fly Kacang Fly could be a source. Whether they are reliable source is another issue.<br />
<br />
Or what if the source does not even exist? What if the 'according to source' is used just to lend some form of credibility to the said rumours?<br />
<br />
Not possible?<br />
<br />
Anyway, yesterday, the SOURCES hit big time. Really big time. Center stage. It's showtime!<br />
<br />
On MalaysiaInsider: <a href="http://www.themalaysianinsider.com/malaysia/article/sc-to-order-sime-general-offer-for-eo-say-sources/">http://www.themalaysianinsider.com/malaysia/article/sc-to-order-sime-general-offer-for-eo-say-sources/</a><br />
<br />
<ul><li><b>SC to order Sime general offer for E&O, <u>say sources</u></b> August 10, 2012<br />
<br />
KUALA LUMPUR, Aug 10 — In a volte face, <b>the Securities Commission (SC) will now order Sime Darby Bhd to make a general offer for Eastern & Oriental Bhd (E&O) shares after buying a 30-per cent stake last year, <u>say government sources</u></b>.<br />
<br />
The Malaysian Insider understands the decision was made after a review by the leadership under new SC chairman Datuk Ranjit Ajit Singh.<br />
<br />
“The SC has reviewed the matter and decided to overturn the earlier decision made when Tan Sri Zarinah Anwar was the chairman,” <b><u>a government source</u></b> told The Malaysian Insider.<br />
<br />
Ranjit, who was the SC managing director, took over as chairman after Zarinah ended her term last March 31.<br />
<br />
<u> </u><b><u>Another source</u> confirmed the review and said the decision will be made public soon</b>.<br />
<br />
Sime Darby purchased its controlling 30 per cent interest in the property developer from three major shareholders — managing director Datuk Terry Tham, Singapore’s GK Goh Holdings and a group of investors led by businessman Tan Sri Wan Azmi Wan Hamzah — at the end of August last year in a deal that valued E&O shares at RM2.30 a piece.<br />
<br />
The purchase price represented a 60 per cent premium over the value of the shares in the company on the open market when the deal was announced.<br />
<br />
<b>The RM776 million deal triggered unease over the widely-perceived coddling by the agency of large state-controlled companies at the expense of minority shareholders when exercising its authority on corporate takeovers</b>.<br />
<br />
The SC ruled six weeks after Sime Darby’s purchase of the three blocks that the plantation-based conglomerate need not make a general offer, prompting E&O minority shareholder Michael Chow to sue the SC for failing to compel Sime Darby to make a general offer for the rest of the shares.<br />
<br />
<b>The legal suit has renewed debate over the SC’s handling of alleged irregular trading activities and had put pressure on <u>Zarinah, whose husband — the E&O chairman — had raised his personal stock holdings in the company just weeks</u> before Sime Darby announced the acquisition</b>.<br />
<br />
The SC has also filed an application to recuse the judge hearing the suit as he used to be with the regulator. But the judge dismissed the application, only for the SC to file an appeal with the Court of Appeal, which heard the case yesterday.<br />
<br />
Singapore’s Straits Times reported last January that a SC task force found that Sime Darby was obliged to make a general offer for E&O shares after acquiring a 30 per but was superseded by the regulator’s top ruling authority.<br />
<br />
The daily reported that the task force was of the view that a general offer obligation had been triggered as a new “concert party” was created between Sime Darby and Tham, who jointly controlled more than 33 per cent in the property concern after the deal.<br />
<br />
<b>Malaysia’s takeover rules stipulate that any party that acquires more than a 33 per cent interest in a publicly-listed entity must carry out a general offer for the remaining shares</b>.<br />
<br />
A general offer can also be triggered if a new party buys less than 33 per cent but secures management control of the target company.<br />
<br />
But the SC’s final ruling three-member committee adjudged “in a majority decision” that there was no general offer obligation as Sime Darby and Tham were not acting in concert, according to an affidavit by the agency’s second-most senior commissioner Datuk Francis Tan, which was sighted by the Singapore daily.<br />
<br />
The committee also accepted the task force’s recommendation that the three groups that sold the blocks of E&O shares to Sime Darby did not collectively control the company and that the disposal did not trigger a general offer.</li>
</ul>That news came late in the afternoon.<br />
<br />
This sexy piece of stock started a buying frenzy. It was incredible. Some were screaming for the stock to go limit up. This piece of news whose sole credibility was based on sources, un-named sources. ( Ever wonder who these sources are?)<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrYZQCjr05NGx0nRlFz-_USuFZqQ46XtnFohsdUXouN_LIr_k24M1wpBovss5ZZA5rY4V1jqXwZ6c9E0QTGnz-iJpogzXi0bY43J9QuVsXzemwzeubn66o8b4qydnhX_UINj99/s1600/e&o.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrYZQCjr05NGx0nRlFz-_USuFZqQ46XtnFohsdUXouN_LIr_k24M1wpBovss5ZZA5rY4V1jqXwZ6c9E0QTGnz-iJpogzXi0bY43J9QuVsXzemwzeubn66o8b4qydnhX_UINj99/s640/e&o.JPG" height="382" width="640" /></a></div><br />
Notice how E&O took off for the moon at around 4 pm.<br />
<br />
And then came the news at 5.50pm.<br />
<br />
<a href="http://biz.thestar.com.my/news/story.asp?file=/2012/8/10/business/20120810174923&sec=business">http://biz.thestar.com.my/news/story.asp?file=/2012/8/10/business/20120810174923&sec=business</a><br />
<br />
<ul><li>Published: Friday August 10, 2012 MYT 5:50:00 PM<br />
<b>SC's position on GO in Sime-E&O remains unchanged</b> By Joseph Chin<br />
<br />
KUALA LUMPUR: <b><u>Sime Darby Bhd does not have to make a general offer for the remaining shares in Eastern and Oriental Holdings (E&O) after it acquired a 30% stake, according to the Securities Commission</u></b>.<br />
<br />
The SC said in a statement on Friday that its position on the GO requirement in the Sime Darby-E&O acquisition remained unchanged as per the statement issued on Oct 11, last year.<br />
<br />
"The decision is now subject to judicial review which is pending in court," the SC said.<br />
<br />
Securities of E&O surged in active trade late Friday on a news portal report that the SC would now order Sime Darby to make a GO for the remaining E&O shares.<br />
<br />
E&O surged 42 sen to close at RM1.90 with 44.74 million shares done while its call warrants E&O-CA jumped 16c to 16.5 sen.<br />
<br />
In the Oct 11 statement, the SC had stated it concluded the review of the circumstances surrounding the acquisition of 30% equity interest in E&O by Sime Darby for any Take-Over Code implication.<br />
<br />
The SC had then stated in the course of the review, parties involved in the transaction were interviewed and relevant documents procured.<br />
<br />
It said the review included an assessment of possible concert party relationships between and amongst the parties involved. Precedents in Malaysia and practices and rulings in other jurisdictions on similar issues were also examined.<br />
<br />
"Having analysed all the evidence gathered, it is the SC's finding that the acquisition of the 30% equity interest in E&O by SDB had not given rise to a mandatory offer obligation under the Malaysian Code on Take-Overs and Mergers 2010," according to the statement.</li>
</ul>Oh oh!<br />
<br />
How now brown cow?<br />
<br />
SC is now denying the news published on Malaysia Insider.<br />
<br />
And this is a delima. A massive delima for punters who punted based on the news released by Malaysia Insider. <br />
<br />
All thanks to Malaysia Insider's un-named government sources, these punters will be worried about the fate of their punt made yesterday afternoon. <br />
<br />
Will the denial send the stock plunging?<br />
<br />
How now brown cow?<br />
<br />
Would you continue to punt on stocks based on news sources who quotes un-named sources?<br />
<br />
<br />
( see also: <a href="http://cgmalaysia.blogspot.com/2012/08/sc-to-order-sime-general-offer-for-e.html">http://cgmalaysia.blogspot.com/2012/08/sc-to-order-sime-general-offer-for-e.html</a> )<br />
<br />
( ps: if this blog posting was published at 4:30 pm, I wonder what would be the reaction? Would I get 'Here we go again... pouring cold water again... Ah Chi Ah CHor so much ..... )<br />
<br />
<ul></ul>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-6948627157475562782013-06-22T07:13:00.001+08:002013-06-22T09:58:34.960+08:00Flash Crash Slams Several StocksGot this in my comments:<br />
<ul>
<li><a href="http://www.blogger.com/profile/11662943720662588117" id="yui_3_7_2_1_1371855639790_1860" rel="nofollow" target="_blank"><span class="yshortcuts" id="lw_1371855688_0">newbie</span></a> has left a new comment on your post "<a href="http://whereiszemoola.blogspot.com/2013/06/maemode-defaults-its-loan-payments-and.html" rel="nofollow" target="_blank"><span class="yshortcuts" id="lw_1371855688_1">MaeMode Defaults Its Loan Payments And Enters PN17...</span></a>": <br />
<br />
Dear Moolah, Did you notice the sharp fall in a number of stocks today?Stocks like BJTOTO,BKAWAN,TDM,CBIP and COASTAL plunged near the end of the session .Remembered you wrote about a similar subject some time ago.Any <span class="yshortcuts" id="lw_1371855688_2">conspiracy theories</span> behind such fall? Spooked quite a number of people.Thanks for your time reading this. </li>
</ul>
Yes, I did write about this before and it's rather spooky again.<br />
<br />
This is the 3rd time something like this happen and yet here we are again.<br />
<br />
Has something been done?<br />
<span style="font-size: large;"><b><br />
</b></span> <span style="font-size: large;"><b>Are they gonna say it's an error trade again?</b></span><br />
<br />
21 Oct 2011: <b><span class="post-labels"><a href="http://whereiszemoola.blogspot.com/2011/10/and-fbm-klci-decided-to-have-its-fun.html">And FBM KLCI Decided To Have Its Own FLASH CRASH!</a> </span></b><br />
<b><span class="post-labels"><br />
</span></b> And almost one year ago,<a href="http://whereiszemoola.blogspot.com/2012/06/about-stock-market-yesterday-day-klse.html">About Stock Market Yesterday: The Day KLSE Decided to Have Gap Up And Gap Down All Over</a><br />
<br />
Same thing all over again.....!!!!!<br />
<br />
Several stocks went limit down at the very last minute of trade.<br />
<br />
Several stocks shot up too!!! <br />
<br />
Come on SC.<br />
<br />
Come on Bursa.<br />
<br />
Don't tell me you guys saw nothing.............<br />
<br />
Apparently they did and they just said "<a href="http://biz.thestar.com.my/news/story.asp?file=/2013/6/22/business/13274351&sec=business"> Trades ‘valid and genuine’</a><br />
<br />
!!!!!!<br />
<br />
<ul>
<li>Six counters from mid-caps to big ones, namely, Hap Seng Plantations Holdings Bhd, Batu Kawan Bhd, TDM Bhd, CB Industrial Product Holding Bhd (CBIP), Coastal Contracts Bhd and Berjaya Sports Toto Bhd, hit limit-down, or a 30% plunge, with a combined trade of RM43.1mil in <u><b>that short time window during pre-close.</b></u><br />
<br />
While the trading pattern may seem like an “error in trading” could have taken place, a Bursa Malaysia representative when contacted by StarBizWeek clarified: <u><b>“With regards to the eight stocks which hit their limits-up (two) and down (six), Bursa Malaysia has investigated the matter and has confirmed with the broker that the basket order, which was from their institutional client, was valid and genuine.</b></u>”</li>
</ul>
Valid and genuine????<br />
<br />
<br />
Has the institutional client lost their marbles???<br />
<br />
<br />
Why DUMP all those shares and sell with limit down orders????<br />
<br />
<br />
You believe???<br />
<br />
<br />
Yeah, I think extremely likely of the pre-close trading. It's nonsense and we get to see nonsensical trades like this!!!<br />
<br />
--------------------------<br />
<br />
Here is how the flash crash looked like....<br />
<u><span style="font-size: large;"><b><br /></b></span></u>
<u><span style="font-size: large;"><b>HSPLANT</b></span></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYv5Odkyy4v6OI7NmsPsCXpThWJuH7Xc8mM1hjbOBWYkDaSZSUJzIKm8OBF26uQrsOrSPnJ7gMT5HRxfOiXjjoQhshi4II93k0xQ32ihhVba5JRIRZEbERuIRRpggZJtvvXBaP/s1600/hsplant.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="326" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYv5Odkyy4v6OI7NmsPsCXpThWJuH7Xc8mM1hjbOBWYkDaSZSUJzIKm8OBF26uQrsOrSPnJ7gMT5HRxfOiXjjoQhshi4II93k0xQ32ihhVba5JRIRZEbERuIRRpggZJtvvXBaP/s640/hsplant.JPG" width="640" /></a></div>
<span style="font-size: large;"><u><b><br /></b></u></span>
<span style="font-size: large;"><u><b>BATU KAWAN</b></u></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBomoUJu9Uwlo6KpDfNL_NiQIgg5Jk0wc1-pgPWelMdvrj0clV3jzXw_EG52efmI69NHd7E4h9860ChyeC5-QDk2Xn46j21V4JCs68LEWu2y2AR8jJnhhqSOXgw_YRF6XdOz9A/s1600/bkawan.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="330" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBomoUJu9Uwlo6KpDfNL_NiQIgg5Jk0wc1-pgPWelMdvrj0clV3jzXw_EG52efmI69NHd7E4h9860ChyeC5-QDk2Xn46j21V4JCs68LEWu2y2AR8jJnhhqSOXgw_YRF6XdOz9A/s640/bkawan.JPG" width="640" /></a></div>
<span style="font-size: large;"><u><b><br /></b></u></span>
<span style="font-size: large;"><u><b>TDM</b></u></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTzoACbj_9ruWmmWUF3ILQrWEV8PFDLxfaE6PS0Obx1x25WPuKyXvfb-qWo734GvaLMbAKqEGjjITFHa_dbgHTWyE1mjCJN5r3gF4NJCoId7lfM-x1oK2JAn49oZQwRoQ-sM8H/s1600/tdm.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="332" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTzoACbj_9ruWmmWUF3ILQrWEV8PFDLxfaE6PS0Obx1x25WPuKyXvfb-qWo734GvaLMbAKqEGjjITFHa_dbgHTWyE1mjCJN5r3gF4NJCoId7lfM-x1oK2JAn49oZQwRoQ-sM8H/s640/tdm.JPG" width="640" /></a></div>
<br />
See how these stocks literally fell off the cliff near the end of closing trade???<br />
<br />
<span style="color: red;"><b>Which institutional client would give a mindless trade order like this??????</b></span><br />
<br />
I just highlighted 3. There are more.<br />
<br />
And here is the opposite.<br />
<br />
Some stocks went straight up!!!!!!!!!!!!!<br />
<span style="font-size: large;"><u><b><br /></b></u></span>
<span style="font-size: large;"><u><b>JCY</b></u></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhycpGLc79hoNJ9nrM_fIgMyW7OO1ilSUdoUB0tqvfXClecym3iohzHChtRG4yM7ROLwTJSBTj15B5c23cokAvqW919beCgxL6HNhJNmO6vd2QOFdq5A6cz9j66sw6QhUMo-TOt/s1600/jcy.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="326" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhycpGLc79hoNJ9nrM_fIgMyW7OO1ilSUdoUB0tqvfXClecym3iohzHChtRG4yM7ROLwTJSBTj15B5c23cokAvqW919beCgxL6HNhJNmO6vd2QOFdq5A6cz9j66sw6QhUMo-TOt/s640/jcy.JPG" width="640" /></a></div>
<span style="font-size: large;"><u><b><br /></b></u></span>
<span style="font-size: large;"><u><b>STAR</b></u></span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2OvcyJywmHdYgn6hmwOhyOQdTu1riviHP2vO32xmhMUuJrm8o04N2u0wkvZliExA7c4DsLH3eRnp2oOhafNejXuUKXl8WaXSlPIdAgEKS2bcgOMVDFLplQXI355vvHU-jW7eg/s1600/star.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="330" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2OvcyJywmHdYgn6hmwOhyOQdTu1riviHP2vO32xmhMUuJrm8o04N2u0wkvZliExA7c4DsLH3eRnp2oOhafNejXuUKXl8WaXSlPIdAgEKS2bcgOMVDFLplQXI355vvHU-jW7eg/s640/star.JPG" width="640" /></a></div>
<br />
Oh yes, there are several more stocks trading in such an outrageous manner at end of trade. Some plunging while others surge limit up.<br />
<br />
What gives?<br />
<br />
Come on Bursa, you cannot just say that these trades are from an institutional client and that the trades were valid and genuine.<br />
<br />
Of course they are valid.<br />
<br />
But.... think lah.<br />
<br />
<span style="font-size: large;"><b>Do you call this a fair and orderly stock market???</b></span><br />
<br />
Well again... if these institutional clients are so important then what about the retail investors???<br />
<br />
Which retail investors wants to be a long term shareholder when market shenanigans like this happen and the culprits get away freely????<br />
<br />
Sigh.<br />
<br />
<br />
<ul>
</ul>
Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-17708300.post-49061894018422911982013-06-20T21:43:00.000+08:002013-06-20T21:43:11.075+08:00MaeMode Defaults Its Loan Payments And Enters PN17Just got this:<br />
<ul>
<li><a href="http://www.blogger.com/profile/15373632232861592746" id="yui_3_7_2_1_1371735023879_1920" rel="nofollow" target="_blank"><span class="yshortcuts" id="lw_1371735072_0">solomon</span></a> has left a new comment on your post "<a href="http://whereiszemoola.blogspot.com/2013/05/unhappy-goldis-minority-shareholder.html" id="yui_3_7_2_1_1371735023879_1710" rel="nofollow" target="_blank"><span class="yshortcuts" id="lw_1371735072_1">Unhappy Goldis Minority Shareholder</span></a>":
<br /><br />
Finally, another ship Maemode failed to service it's debt.....this is in your radar if I am not too old to forget.... </li>
</ul>
Yeah, I saw that and I see it's highlighted on the Edge also. <a href="http://www.theedgemalaysia.com/business-news/242712-malaysian-ae-models-defaults-on-loan-payment-.html" target="_blank">http://www.theedgemalaysia.com/business-news/242712-malaysian-ae-models-defaults-on-loan-payment-.html</a><br />
<br />
With that default, MaeMode is now a PN17 stock. <a href="http://www.bursamalaysia.com/market/listed-companies/company-announcements/1327333">PRACTICE NOTE 17 / GUIDANCE NOTE 3:FIRST ANNOUNCEMENT </a><br />
<br />
Anyway, I am not a bit surprised at all.<br />
<br />
My last posting on MaeMode was on 2nd May. <a href="http://whereiszemoola.blogspot.com/2013/05/times-almost-up-for-maemode.html">Time's Almost Up For MaeMode</a><br />
<br />
<br />
Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-17708300.post-4685915324305600902013-05-23T08:07:00.001+08:002013-05-23T08:08:36.461+08:00Unhappy Goldis Minority Shareholder<a href="http://www.blogger.com/profile/06775824764562010114" rel="nofollow" target="_blank">lim hwa</a> has left a new comment on your post "<a href="http://whereiszemoola.blogspot.com/2013/04/investment-adviser-just-who-are-you.html" rel="nofollow" target="_blank">Investment Adviser: Just Who Are You Advising For?...</a>":
<br />
<br />
I refer to the recent announcement by Goldis Berhad on 8 May 2013 for
the capital distribution of IGB shares. From the first reading of the
announcement, it seems the proposal is really to reward the shareholders
of Goldis. However, with further understanding of the proposal, the
proposal seems to me just another way of taking the value from the
minority shareholders. <br />
<br />
In my humble opinion, to put the unlisted
share as an alternate option to cash to MI is as good as forcing the MI
to have no option but just have to take up the cash option. My
rationale is that one of the key objectives of us investing in stock
markets / listed shares as compared other investments is due to
liquidity. As the proposal is to distribute the unlisted shares, then
such proposal is defeating the our objective. <br />
<br />
To simplify it,
assuming a listed co only owns a very profitable subsidiary (say with
NTA of RM100 mil). The major shareholders then propose the similar
structure to all the shareholders whereby the profitable subsidiary to
be transferred to a non-listed company at say RM50 mil. Thereafter, all
the shareholders will be given the options to choose (i) the unlisted
shares or (ii) cash value per listed share which will be substantially
undervalue as the valuation for the transfer is only half of the NTA.<br />
<br />
Eventually,
the major shareholders will own 100%/ majority of the unlisted company
cuz i presume majority of the MI will not opt for unlisted shares due to
liquidity. <br />
<br />
With this, the major shareholders are essentially
privatise the jewel of the listed company at a cheap valuation in the
expense of the MIs' value.<br />
<br />
I see the above illustration happens to GOLDIS now. <br />
<br />
May
I have your view on this case i.e. GOLDIS just to make sure MIs' are
well protected before the same structure to be replicated for the next
many more coming proposals if this first kind of proposal is
successfully completed.
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-17708300.post-74366171872192359722013-05-08T09:02:00.000+08:002013-05-08T09:02:30.366+08:00Red Flag Raised At HB Global Cash Balances!Since I had been posting a lot about China based companies listed in our stock exchange, I was watching HB Global.<br />
<br />
HB Global's stock was plunging when it said publicly it was delaying its audited accounts ( <a href="http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=237501&Itemid=79" target="_blank">http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=237501&Itemid=79</a> )!!!!<br />
<br />
Last night HB Global made the following announcement: <a href="http://www.bursamalaysia.com/market/listed-companies/company-announcements/1280081" target="_blank">http://www.bursamalaysia.com/market/listed-companies/company-announcements/1280081</a> <br />
<br />
<ul>
<li>The Board of Directors of HB Global Limited (formerly known as Sozo Global Limited) (“<b>HB</b>” or “<b>the Company</b>”) wishes to announce that the Company’s External Auditors, Messrs. Paul Wan & Co had expressed an audit disclaimer opinion in the Company's latest audited financial statements for the financial year ended 31 December 2012, as follows:-<br />
<i>“Basis for Disclaimer of Opinion</i><br />
Included in the Group’s balance sheet as at 31 December 2012 is <span style="color: red;"><b>bank balance amounting to RMB 249,633,611. In the course of our audit, we were not able to satisfactorily and independently substantiate the bank balance of the subsidiary company. </b></span> In addition we were not able to r<b>eceive reliable independent confirmations on majority of the <a href="http://www.blogger.com/null" name="_GoBack"></a>trade receivables and trade payables that were circularised; these balances represented 56% of trade receivables and 48% of trade payables as at 31st December 2012. </b> These brought into question the proper accounting for bank balances, trade receivables and trade payables and the corresponding transactions in the Group for the year ended 31 December 2012 and the completeness of transactions recorded in the Group’s accounting records. <br />
<i>Disclaimer of Opinion</i><br />
Because of the significance of the matters described in the Basis for Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for our audit opinion. Accordingly, we do not express an opinion on the financial statements.”<br />
This announcement is dated 7 May 2013. </li>
</ul>
WOW!<br />
<br />
NOT able to satisfactorily and<b> independently substantiate</b> the BANK BALANCE of the subsidiary company?<br />
<br />
Aha!<br />
<br />
Red flag raised!<br />
<br />
Remember the past postings on the China based stocks? <a href="http://whereiszemoola.blogspot.com/2013/05/so-whats-probelm-with-china-based.html">So What's The Problem With China Based Companies?</a><br />
<br />
The media kept on highlighting that these China based stocks were so cash rich.<br />
<br />
I challenged that statement and I showed with a real example on how a director of a China based stock sold shares BELOW the cash per share value and for that stock, we saw the company's cash balances was said to be at 894.674 million. So much cash but the company earns only 3.416 million in interests. Does it make sense?<br />
<br />
Let's look at the last reported quarterly earnings from HB Global. <a href="http://www.bursamalaysia.com/market/listed-companies/company-announcements/1214805" target="_blank">http://www.bursamalaysia.com/market/listed-companies/company-announcements/1214805</a><br />
<br />
The balance sheet shows the following...<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKJuVlEPoe-654edZyoKxuzOvlPf10utrkdjQKCYW383IfwoE_vBin8QQ6WueO95jSIO2rIW0zwF0kn398oHjRD5kc0-aOp1eoAeVcxXQdI_ha_GYb5Ye2KMlxsO0R2uWW9Taf/s1600/hbglobal.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="602" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjKJuVlEPoe-654edZyoKxuzOvlPf10utrkdjQKCYW383IfwoE_vBin8QQ6WueO95jSIO2rIW0zwF0kn398oHjRD5kc0-aOp1eoAeVcxXQdI_ha_GYb5Ye2KMlxsO0R2uWW9Taf/s640/hbglobal.JPG" width="640" /></a></div>
<br />
Oh yeah... cash balances were said to be at 124.725 million. HB Global 'as per' its balance sheet is cash rich!<br />
<br />
Now if you look at the cash flow statement below, the interest received is only 1.018 million!!!!!<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgvAv0QPLJs6XjmcON7AlKVIPvKpRRQS2zvtmom0cqiHrkUVg8BJbyMKXNrV8kcNxAUCrWQ62wL-SFkXTBUGTjM0koLUdVVyw15cyKl4bF2id7KaE28Zgf29ZPdIzIk6h1f1zU/s1600/hbglobal.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="576" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgvAv0QPLJs6XjmcON7AlKVIPvKpRRQS2zvtmom0cqiHrkUVg8BJbyMKXNrV8kcNxAUCrWQ62wL-SFkXTBUGTjM0koLUdVVyw15cyKl4bF2id7KaE28Zgf29ZPdIzIk6h1f1zU/s640/hbglobal.JPG" width="640" /></a></div>
<br />
Huh?<br />
<br />
Exactly!!! <br />
<br />
HB Global said it holds cash balances of over 124 million but it only receives 1 million in interests!!!!<br />
<br />
Does it make sense to have so much money and not generate any bank interest for all these cash?<br />
<br />
Now HB Global auditors is questioning the cash balances!!!!<br />
<br />
How?<br />
<br />
Next time you hear someone talks about cash rich China based stocks, tell them to have a look at HB Global!!!!!<br />
<br />
And yeah... currently there are 9 China based stocks listed here and our dear old Bursa Malaysia wants to have more such listings!!!!!<br />
<br />
Sigh!<br />
<br />
<br />
<br />
<br />
<br />Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-17708300.post-56760387486550293452013-05-04T10:10:00.004+08:002013-05-06T12:45:06.957+08:00So What's The Probelm With China Based Companies?I was reading the following article: <a href="http://biz.thestar.com.my/news/story.asp?file=/2013/5/4/business/13030734&sec=business" target="_blank">http://biz.thestar.com.my/news/story.asp?file=/2013/5/4/business/13030734&sec=business</a><br />
<br />
In light of the recent posting, <a href="http://whereiszemoola.blogspot.com/2013/04/do-you-want-more-china-based-companies.html">Do You Want More China Based Companies To Be Listed Here?,</a> the first few passages caught my attention...<br />
<ul>
<li>THERE are currently nine China-based companies listed in Malaysia and <b>you'll be hard pressed to find one that is trading above their initial public offering (IPO) price.</b><br />
<br />
Of course, some did trade above their IPO price soon after they were listed but none proved sustainable.<br />
<br />
It's somewhat perplexing that they are not. <b>These companies are cash-rich, have profits that grow year-on-year and almost, if not, all are trading at huge discounts to their net cash per share</b>.<br />
<br />
Sure, not all of their businesses are terribly sexy. Most are shoe manufacturers but given the growing population and income levels the world over, there remains growth potential.<br />
<b><br />
So, what is the problem?</b></li>
</ul>
Yeah what's their problem?<br />
<br />
First thing first.<br />
<br />
"<b>you'll be hard pressed to find one that is trading above their initial public offering (IPO) price."</b>.. When I posted <a href="http://whereiszemoola.blogspot.com/2013/04/do-you-want-more-china-based-companies.html">Do You Want More China Based Companies To Be Listed Here?</a>, on the average, these China based companies were starring at 63% losses since their IPO listing. And the losses increased since ALL of these China based stocks declined further since then.<br />
<br />
Two of the big losers were HB Global and CSL, with HB Global plummeting some 24% yesterday when it announced it's delaying its audited accounts! ( <a href="http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=237501&Itemid=79" target="_blank">http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=237501&Itemid=79</a> )!!!!<br />
<br />
CSL closed at 26 sen yesterday. (IPO Price 95 sen!!!!! )<br />
<br />
The Star Business article talked about these stocks trading at huge discounts to their net cash per share.<br />
<br />
Let's look at CSL quarterly earnings report: <a href="http://www.bursamalaysia.com/market/listed-companies/company-announcements/1211577" target="_blank">Quarterly rpt on consolidated results for the financial period ended 31/12/2012 </a><br />
<br />
Have a look at the pdf file attached to that Bursa webpage.<br />
<br />
From the balance sheet, we can see that CSL is cash rich!<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDxN3hZ2iEc4XBIfogK5I7RPipTNgTVcugUHfCpNm6wySv_H9no77DgKxPF2pcKxlImBRgTJHSTWAKIMrbd1nAhyumQU9EA-QpjUjjTQrXQ1bqfE9AKOW55LZAz8qodhvKnOKb/s1600/csl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="482" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDxN3hZ2iEc4XBIfogK5I7RPipTNgTVcugUHfCpNm6wySv_H9no77DgKxPF2pcKxlImBRgTJHSTWAKIMrbd1nAhyumQU9EA-QpjUjjTQrXQ1bqfE9AKOW55LZAz8qodhvKnOKb/s640/csl.JPG" width="640" /></a></div>
CSL says it has some 894.674 million in its piggy bank!<br />
<br />
That's a lot of cash!<br />
<br />
Super cash rich since CSL does not have any borrowings.<br />
<br />
But the market is selling CSL at 26 sen only!!!!<br />
<br />
26 sen... which means CSL market capital is worth 323.117 million!<br />
<br />
Holy cow!<br />
<br />
I'm sure you will ask is the market out of whack selling CSL at 26 sen!!!!!<br />
<br />
With a market capital of 323.117 million, it means the market is valuing CSL way below its 894.674 million.<br />
<br />
With 1,242.760 million shares, CSL's cash per stated in its Feb quarterly earnings is 72 sen!<br />
<br />
Yes, you heard me, cash per share is worth some 72 sen.<br />
Market valuing the shares at only 26 sen.<br />
<br />
How can the share be worth so little compared to the company's cash????<br />
<br />
Won't the owners be better off taking the company private?<br />
<br />
Correct?<br />
<br />
If the cash per share is REALLY worth 72 sen and the share is trading at 26 sen, surely the owners would buy these shares like crazy, yes?<br />
<br />
But this did not happen!!!<br />
<br />
Instead on 23 March, less than one month after this earnings report was released, one of the directors, <b style="mso-bidi-font-weight: normal;">Chan Fung @ Kwan Wing Yin, </b><span style="mso-bidi-font-weight: normal;">decided to dispose shares at 60 sen!!!!!</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Huh!!!!</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Yes sir!</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Company's cash per share were worth 72 sen.</span><br />
<span style="mso-bidi-font-weight: normal;">Company's director disposes shares at 60 sen!!!</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">How????</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Makes sense?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Time to look at the cash flow.</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Looking at the cash flow statement is useful because the <b>interest income</b> is stated there.</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Think about it. For a company like CSL, it says it has 894 million in its piggy bank. A lot of money, yes? Surely the company would deposit a bulk of the money to earn some interest right?</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgALTn6y5abAj4PXiP7xpbxZ5igk7Ek9RPn5wpbG6R6vuVpNicjb9aLPVJ3mnJpJrTwVEr9t-rumnVuUoUHDK7RHt0Nzs6mzhUzVMfIQxdY-q9krimXK667-isJhCqTK0GW77ZE/s1600/csl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="484" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgALTn6y5abAj4PXiP7xpbxZ5igk7Ek9RPn5wpbG6R6vuVpNicjb9aLPVJ3mnJpJrTwVEr9t-rumnVuUoUHDK7RHt0Nzs6mzhUzVMfIQxdY-q9krimXK667-isJhCqTK0GW77ZE/s640/csl.JPG" width="640" /></a></div>
<br />
<span style="mso-bidi-font-weight: normal;">CSL's interest received showed only 3.416 million.</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Huh?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">So low?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">CSL has 894.674 million cash and CSL only receives 3.416 million in interests!!!!</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">WHAT'S HAPPENING?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">What is CSL doing with its 894.674 million????</span><br />
<br />
<span style="mso-bidi-font-weight: normal;"><b>(ps: How about CSL allow me to manage their 894.674 million cash and I pay them 6 million in interest!! ) </b></span><br />
<br />
<b><span style="mso-bidi-font-weight: normal;">Why is CSL getting so little in interest???</span></b><br />
<br />
<span style="mso-bidi-font-weight: normal;"> Well, what's the possible answers?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">Is CSL putting any of the money into fixed deposits account?</span><br />
<span style="mso-bidi-font-weight: normal;">If no, why?</span><br />
<span style="mso-bidi-font-weight: normal;">If no, what is CSL doing with all these money? </span><br />
<span style="mso-bidi-font-weight: normal;">If yes, why so little in interest?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;">How? What's the problem with these China based companies?</span><br />
<br />
<span style="mso-bidi-font-weight: normal;"><span style="color: red;"><b>Would you trust the NET CASH PER SHARE of this China based company?</b></span> ( Feel free to do a similar research on other China based companies.) </span><br />
<span style="mso-bidi-font-weight: normal;"> </span><br />
<span style="mso-bidi-font-weight: normal;"></span><br />
<span style="mso-bidi-font-weight: normal;"></span><span style="mso-bidi-font-weight: normal;">How now?</span><br />
<br />
<span style="color: red;"><b><span style="mso-bidi-font-weight: normal;">They say share cheap because share is trading below net cash per share. But company director is selling their share below the net cash per share. Company earns extremely low interest.</span></b></span><br />
<br />
<span style="color: red;"><b><span style="mso-bidi-font-weight: normal;">DARE you invest in such company???</span></b></span><br />
<br />
<span style="mso-bidi-font-weight: normal;"> ps: When CSL was newly listed it was a darling stock. With an IPO of 95 sen, CSL managed to fly to a high of 1.93 sen within one month from its listing! See chart below.</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6l0Gol7s4KfLiZwDQbWtf85_ocmTvbKkVL2vJG1lWUmpw3Qe8JT_SORHJBS0_5o02PVNvOMHsBhIQYBgej2ZFpJPsnpAxcbKT6C4o768WxStv4Ur1h_qi6kMzkeb27B79NptS/s1600/csl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="614" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6l0Gol7s4KfLiZwDQbWtf85_ocmTvbKkVL2vJG1lWUmpw3Qe8JT_SORHJBS0_5o02PVNvOMHsBhIQYBgej2ZFpJPsnpAxcbKT6C4o768WxStv4Ur1h_qi6kMzkeb27B79NptS/s640/csl.JPG" width="640" /></a></div>
<span style="mso-bidi-font-weight: normal;"> Here's the chart almost a year later.</span><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiObEFr0-ZWhXIPsU5TaLiY_0vPoMgdt4wDEtUnYcMMqsAc0q6rH6ZBt-DyZHsqtI9kW7M66Z6BBjnMyp1rJZZByNl9aTC63hzw4iRNy4up6tNvW6s4s7BaIbi6QLYz9lj4DohG/s1600/csl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="604" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiObEFr0-ZWhXIPsU5TaLiY_0vPoMgdt4wDEtUnYcMMqsAc0q6rH6ZBt-DyZHsqtI9kW7M66Z6BBjnMyp1rJZZByNl9aTC63hzw4iRNy4up6tNvW6s4s7BaIbi6QLYz9lj4DohG/s640/csl.JPG" width="640" /></a></div>
<span style="mso-bidi-font-weight: normal;"> </span><b style="mso-bidi-font-weight: normal;"><br /></b>Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-17708300.post-2743290114079278262013-05-02T09:54:00.001+08:002013-05-02T09:54:30.286+08:00Time's Almost Up For MaeModeOne of the stocks I blogged many times before is <span class="post-labels"><a href="http://whereiszemoola.blogspot.com/search/label/MaeMode" rel="tag">MaeMode</a>,</span><br />
<br />
<span class="post-labels"> Maemode just announced its 2nd consecutive quarter of losses.</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">Company said the following in its notes.</span><br />
<ul>
<li><span class="post-labels">For the nine months period ended 28 February 2013, the Group recorded a turnover of RM 388.96 million compared to RM429.97 million registered in the previous year's corresponding period. The Group recorded a loss before taxation of RM 3.74 millionfor the current period as compared to profit before taxation of RM 16.24 million in previous year's corresponding period. This was caused<br />by the substantial increased in holding costs of approximately 6.8 Million due to the delay in the installation works on certain major projects such as KLIA 2, which also caused the billings to be delayed.</span></li>
</ul>
<span class="post-labels">I feel those comments are not doing any justice to its minority shareholders.</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">Have a look at the following table.</span><br />
<span class="post-labels"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPYHn_9Jn-KYTSAFpRtSljV5CyFL2eA431lt-gNQpercTyDygUvSt8yR7t0tVRG_yxzKwp-vNgIvCM2IC1aGG3p4sUDszswkOMhQgWOoFyLIzp_SWBAjrbXExOYZiKRAsVmr3J/s1600/maemode.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPYHn_9Jn-KYTSAFpRtSljV5CyFL2eA431lt-gNQpercTyDygUvSt8yR7t0tVRG_yxzKwp-vNgIvCM2IC1aGG3p4sUDszswkOMhQgWOoFyLIzp_SWBAjrbXExOYZiKRAsVmr3J/s640/maemode.JPG" width="640" /></a></div>
<span class="post-labels"><br /></span>
<span class="post-labels">How now?</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">Look at how the LOANS are increasing all the time!</span><br />
<span class="post-labels">Look at the increasing receivables too!</span><br />
<span class="post-labels"></span><br />
<span class="post-labels">And look at the depleting cash!</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">Extremely scary stuff!</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">How could a company be run in such a manner?</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">Why is the receivables increasing all the time?</span><br />
<span class="post-labels">Why is the company not collecting these receivables?</span><br />
<span class="post-labels">Have the auditors gave a thorough check on the sum of these receivables?</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">And why is the company continuing to borrow money all the time when there is so much receivables to collect?</span><br />
<span class="post-labels">What is the company doing with all the borrowed money?</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">So many questions........</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">And the scariest picture now has got to be the following....</span><br />
<span class="post-labels"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk9zWdm_oRZnPR3NqLGFledYDMJ2RguBrxrJh1s_Jq6a-jFm3dvoY3lExb-OrQiqpbiX2bvXCv-6McM2mVF3kXiW0OCK1rPAu5q_8l9K4TFaX11GigvnholMliBXbkAas5LxQ9/s1600/maemode.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk9zWdm_oRZnPR3NqLGFledYDMJ2RguBrxrJh1s_Jq6a-jFm3dvoY3lExb-OrQiqpbiX2bvXCv-6McM2mVF3kXiW0OCK1rPAu5q_8l9K4TFaX11GigvnholMliBXbkAas5LxQ9/s640/maemode.JPG" width="640" /></a></div>
<span class="post-labels"><br /></span>
<span class="post-labels">Amount (borrowings) payable within the next 12 months is 449.559 million!!!!!</span><br />
<span class="post-labels"><br /></span>
<span class="post-labels">How much money does the company have??</span>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-17708300.post-43198113801263781602013-04-26T13:03:00.000+08:002013-04-26T13:14:39.507+08:00Do You Want More China Based Companies To Be Listed Here?Saw the link to the article on Star Business: <a href="http://biz.thestar.com.my/news/story.asp?file=/2013/4/26/business/13027722&sec=business">Kanger set to be 10th China-based company to list on the local bourse</a><br />
<br />
I did not even want to read about it.<br />
<br />
First thing on my mind was 10th!<br />
<br />
Do we really need all these Chinese companies to be listed in our stock exchange?<br />
<br />
Come on Bursa!<br />
<br />
Stop thinking like a commission based salesman! These companies are stinking our stock exchange! Come on. You can't smell it? You guys complain about the lack of retail investors all the time and here you are, inviting all these China based companies to be listed here.<br />
<br />
You just don't get it, yes?<br />
<br />
More quantity is not going to increase retail investing participation.<br />
<br />
QUALITY is the only word that is important.<br />
<br />
<b>What is stock investing?</b><br />
<b><br /></b>
<b>Stock investing is investing in good quality businesses at a good price.</b><br />
<b><br /></b>
<b>Investors don't want to invest in all these poor quality companies only to find the value of their investment shrink like hell after a few months!</b><br />
<br />
Here's proof.<br />
<br />
<a href="http://www.bursamalaysia.com/market/listed-companies/initial-public-offerings/ipo-summary/" target="_blank">http://www.bursamalaysia.com/market/listed-companies/initial-public-offerings/ipo-summary/</a><br />
<br />
The three most recent listed Chinese stocks.<br />
<br />
<b>China Automobile Parts Holdings Limited </b><br />
IPO Price: 68 sen<br />
Listed 30/1/2013<br />
Current Price: 36 sen<br />
<br />
<b>China Stationery Limited</b><br />
IPO Price: 95 sen<br />
Listed: 24/2/2012<br />
Current Price: 34 sen<br />
<br />
<b>Maxwell International Holdings Bhd</b><br />
IPO Price: 54 sen<br />
Listed: 6/1/2011<br />
Current Price: 31 sen<br />
<br />
Compare the current share price as of this morning versus the IPO price of these 3 China based stocks. All IPO investors of these Chinese stocks would be cursing at the stock performance as of today.<br />
<br />
The following table shows the current price versus the IPO price and the % change of all Chinese listed companies.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfHH2WpViwSkV8E1o5tEln_idxaz0lpa44MOQDrDiXYNqA4LZBVkflw9KdU1O1EZiooQG5F99YH_AYgnzvqt2JM2px37HvMR2-f4Qzv3b8sQhInoiO2IH6DQgNZ_EkF5lWKWUL/s1600/chinese.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="442" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfHH2WpViwSkV8E1o5tEln_idxaz0lpa44MOQDrDiXYNqA4LZBVkflw9KdU1O1EZiooQG5F99YH_AYgnzvqt2JM2px37HvMR2-f4Qzv3b8sQhInoiO2IH6DQgNZ_EkF5lWKWUL/s640/chinese.JPG" width="640" /></a></div>
<br />
<span style="font-size: large;"><u><b>On average, investors of these Chinese stocks are starring at an average loss of 63% since listing!!!!</b></u></span><br />
<br />
How?<br />
<br />
Bursa Malaysia, are you aware of this stat?<br />
<br />
If so, why?<br />
<br />
<b>Why are you pushing for another Chinese stock to be listed on our stock exchange?</b><br />
<b><br /></b>
<b>Do you care for the quality of the stock exchange?</b><br />
<b><br /></b>
<b>Or do you just list such companies hoping just for more revenue for the exchange????</b><br />
<br />
Here are the charts showing the performance of all these Chinese stocks since listing.<br />
<br />
<u><b>Chinese Automobile Parts (CAP) </b></u><br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNX4zpe4IDTi54yPbS3hPHXzKafgKW4weHaQgIS3IHzifNl_Ti1Nu8JSzfbFggARLDebtaCVxlZmyO7znXP0oVf7Om52egiX3c1BJua_FuaAcXBF61PIORGlZ5okUz5Mjzm-FC/s1600/cap.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNX4zpe4IDTi54yPbS3hPHXzKafgKW4weHaQgIS3IHzifNl_Ti1Nu8JSzfbFggARLDebtaCVxlZmyO7znXP0oVf7Om52egiX3c1BJua_FuaAcXBF61PIORGlZ5okUz5Mjzm-FC/s640/cap.JPG" width="640" /></a></div>
<br />
<u><b>China Ouhua Winery Holdings Ltd (CNOUHUA)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheX8Lk_hnjRBfpw05nPMdj4LJ-bB-5a6GahIhobaYcKnr2SJ1u4s2avi4JpNSOXnnF3RGF3okKoRkwMfcX_CFGzk_hh0BFaRyyQ7Gb0xaN8_u5p9iJkWnFRYNu24GzVTJIE7he/s1600/cnouhua.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="412" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheX8Lk_hnjRBfpw05nPMdj4LJ-bB-5a6GahIhobaYcKnr2SJ1u4s2avi4JpNSOXnnF3RGF3okKoRkwMfcX_CFGzk_hh0BFaRyyQ7Gb0xaN8_u5p9iJkWnFRYNu24GzVTJIE7he/s640/cnouhua.JPG" width="640" /></a></div>
<br />
<u> </u><b><u>China Stationery Limited (CSL)</u></b><br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhj9ZbEvI22nxAk9XH-Hvdz4cKBGqmXv9Px1NVg_lGGEn8fpQIjj5w4FyA2FlCJ0ejS5SVzJ4TQHB_dh4VzbGePXK4mY3J9Sa7MK1xIuPO2kIY1DlahHzSGzM-CgUL7iEY1lUVf/s1600/csl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhj9ZbEvI22nxAk9XH-Hvdz4cKBGqmXv9Px1NVg_lGGEn8fpQIjj5w4FyA2FlCJ0ejS5SVzJ4TQHB_dh4VzbGePXK4mY3J9Sa7MK1xIuPO2kIY1DlahHzSGzM-CgUL7iEY1lUVf/s640/csl.JPG" width="640" /></a></div>
<br />
<u><b>HB Global Limited (HBGLOB) (Old name: Sozo Global)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUkndH5Y3JurjwVs_2Mr_j1jgYeV5T3rxAAt8V4QSn6Z1qWQ3TStOt78RLaxOp4EmicovsNOrHpNoVWqXao-25TS2eN5po07_el2tY1K29aS-7e_QMB2Rb6ga4vBSV7ASc-j2D/s1600/hbglob.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="416" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUkndH5Y3JurjwVs_2Mr_j1jgYeV5T3rxAAt8V4QSn6Z1qWQ3TStOt78RLaxOp4EmicovsNOrHpNoVWqXao-25TS2eN5po07_el2tY1K29aS-7e_QMB2Rb6ga4vBSV7ASc-j2D/s640/hbglob.JPG" width="640" /></a></div>
<br />
<u><b>K-Star Sports Limited (KSTAR)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_HjraAUG75B5CYqnkuOCo_-6AWf3Jr20r_nTUxc2NexprrQXoumFN0IgxqSeJf0PxgJQ3DFyQW2_4JnJ5n24nMLG5xqWl1dBsfQzhOOe-ZoVedAwtqCxorH0BcchdYi_ip3el/s1600/kstar.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="412" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_HjraAUG75B5CYqnkuOCo_-6AWf3Jr20r_nTUxc2NexprrQXoumFN0IgxqSeJf0PxgJQ3DFyQW2_4JnJ5n24nMLG5xqWl1dBsfQzhOOe-ZoVedAwtqCxorH0BcchdYi_ip3el/s640/kstar.JPG" width="640" /></a></div>
<u><br /></u>
<u><b>Maxwell International Holdings Bhd (Maxwell)</b></u><br />
<b><br /></b>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhf9OMJKJdXx9RwUykc0KW-bp_-0RMIwLUL_AEJ0tV1HEYJ0Rc1r2cyhHoZqA0BGuyDnZCz7gLta5kHUg-uX42tIb9rQb046cYFwc8zN4G9Lr1XQrSt1Uhg679hFNAHTg0h6lYy/s1600/maxwell.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhf9OMJKJdXx9RwUykc0KW-bp_-0RMIwLUL_AEJ0tV1HEYJ0Rc1r2cyhHoZqA0BGuyDnZCz7gLta5kHUg-uX42tIb9rQb046cYFwc8zN4G9Lr1XQrSt1Uhg679hFNAHTg0h6lYy/s640/maxwell.JPG" width="640" /></a></div>
<br />
<u><b>Multi Sports Holdings Limited (MSPORTS)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLWunYfPYexvzRP0YdLfNEhydJwFB1OJz352wTAGYqO5q2VqnJwbKs_eNR9fciLPogD1dWlQvTISrxi9FuYyxem9jiSOmYl1gKiGZOJnW1H2qzgKmzVct1V2oJgoEHetDuWW0y/s1600/msports.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLWunYfPYexvzRP0YdLfNEhydJwFB1OJz352wTAGYqO5q2VqnJwbKs_eNR9fciLPogD1dWlQvTISrxi9FuYyxem9jiSOmYl1gKiGZOJnW1H2qzgKmzVct1V2oJgoEHetDuWW0y/s640/msports.JPG" width="640" /></a></div>
<u><b><br /></b></u>
<u><b>XiDeLang Holdings Limited (XDL)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFMfNwN5dfmymA3oEyFLVw1FZCD30jSM0R2YU6I5-Y3IGFuK5wxnAsiDuBqBFUjJ4locTF0jQIVFpUGqcYVH518C2RZUaq9orPcUwJOYFQYxVt4saEDpzlkLpnFY9poekWAHVx/s1600/xdl.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFMfNwN5dfmymA3oEyFLVw1FZCD30jSM0R2YU6I5-Y3IGFuK5wxnAsiDuBqBFUjJ4locTF0jQIVFpUGqcYVH518C2RZUaq9orPcUwJOYFQYxVt4saEDpzlkLpnFY9poekWAHVx/s640/xdl.JPG" width="640" /></a></div>
<br />
<u><b>Xinquan International Sports Holdings Limited (XINQUAN)</b></u><br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLuwsiObZtqOY0ZeBjTI_agjtH6__0ai5scDATaBD64-0MRF958CznT_-c7jaw-E4Y7MmMkARMx8ZeU19p9vUyA07rRDDv3s3o3Y8A9K9NxandYZpdxRGGWifsLspHlxJ9VrH6/s1600/xingquan.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="414" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiLuwsiObZtqOY0ZeBjTI_agjtH6__0ai5scDATaBD64-0MRF958CznT_-c7jaw-E4Y7MmMkARMx8ZeU19p9vUyA07rRDDv3s3o3Y8A9K9NxandYZpdxRGGWifsLspHlxJ9VrH6/s640/xingquan.JPG" width="640" /></a></div>
<br />
<br />Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-17708300.post-81354163751878799652013-04-23T09:59:00.001+08:002013-04-23T09:59:40.827+08:00One Of The Best Manchester United Goal!Kagawa squares the ball to Rooney.<br />
<br />
Rooney in his own half sees Van Persie making the run.<br />
<br />
A Hail Mary pass was lobbed towards the path of Van Persie's run.<br />
<br />
The pass was right on the money. Van Persie didn't even need to break his run. All was needed was concentration. Eyes on the ball, mate.<br />
<br />
Bang!<br />
<br />
Bang Bang Van Persie lets fly.<br />
<br />
Van Persie didn't even need the ball to bounce. He lashes the ball and kaboom!<br />
<br />
Ball was in the net!<br />
<br />
What a volley! What a goal!<br />
<br />
<br />
One of the best Manchester United ever!<br />
<br />
Absolutely brilliant!<br />
<br />
This is the goal of the season for me! <br />
<br />
Well done United!<br />
<br />
Champions again!Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-81154115903850065602013-04-22T12:04:00.001+08:002013-04-22T12:04:17.452+08:00Maintain Neutral But Stock Is Trading Higher Than Target PriceSince I have commented on the UNFAIR but REASONABLE advise dished out by Independent Advisors, I feel I should also point out another type of wonderful advice from our stock market research houses.<br />
<br />
This was published on theEdgeMalaysia.com: <a href="http://www.theedgemalaysia.com/business-news/236588-venturing-into-biodiesel.html" target="_blank">http://www.theedgemalaysia.com/business-news/236588-venturing-into-biodiesel.html</a><br />
<br />
<ul>
<li><b>Venturing into biodiesel </b><br />
Business & Markets 2013 <br />
Written by theedgemalaysia.com <br />
Monday, 22 April 2013 10:49 <br />
<br />
Felda Global Ventures <br />
Holdings Bhd <br />
(April 19, RM4.60) <u><b><br />
Maintain neutral at RM4.60 with a target price of RM4.32:</b></u> We are
overall “neutral” on FGV’s acquisition of a 100,000-tonne biodiesel
plant in Malaysia. This will allow the group to expand its product
offerings to include biodiesel. However, this is offset by our concern
over the historical losses reported by the business.<br />
<br />
We expect FGV to turn around this business given the potential synergy
to be derived from this asset with its existing businesses. In view of
this, we expect this acquisition to have a minimal impact on the group’s
future earnings. We maintain our “neutral” call with an unchanged sum
of parts-based target price of RM4.32.<br />
<br />
FGV has signed an agreement with Mission Biotechnologies Sdn Bhd to
acquire a 100,000-tonne per annum biodiesel refinery at Kuantan Port,
Pahang for US$11.5 million (RM34.9 million). <br />
<br />
The biodiesel plant is located on six acres (2.4ha) of prime land and
has a 16,000-tonne storage tank connected to a deep water jetty via
import and export pipelines. The plant is expected to be fully
operational by July 1.<br />
<br />
This new development is in line with the group’s strategy to venture
further into downstream operations. The plant is located close to FGV’s
estates in Pahang as well as the group’s refinery and oleochemical
plant. This will allow the group to integrate this plant into its
existing operations more efficiently and save on transport costs. <br />
<br />
The acquisition will also allow FGV to channel its high free fatty acids
(or lower quality) CPO for biodiesel production and achieve better
pricing for its palm products. The acquisition price for the asset looks
fair to us as it is below RM100 million, which was the price quoted for
building a biodiesel plant in 2006. <br />
<br />
However, FGV’s acquisition is most costly compared with Genting
PLANTATION []s Bhd’s acquisition of a 200,000-tonne biodiesel plant in
Lahad Datu for US$13.3 million in 2011. <br />
<br />
The potential synergy to be derived is offset by the historical pre-tax
losses chalked up by the biodiesel business of A$4.5 million (RM14.04
million) to A$5 million in 2011 financial year (FY11) and FY12. <br />
<br />
We expect FGV to turn around the business through improved utilisation
rates and better procurement of raw materials. Overall, the earnings
impact from this is projected to be minimal. Maintain “neutral”. <b>— CIMB Research, April 19</b><br />
<br />
<br />
<br />
This article first appeared in The Edge Financial Daily, on April 22, 2013.</li>
</ul>
Well what's wrong with this 'neutral' recommendation?<br />
<br />
The stock is trading at 4.60 but the research house's target price is 4.32.Which means the stock is worth more than the target price set!<br />
<br />
Yet the research house recommendation is a NEUTRAL.<br />
<br />
Duh!<br />
<br />
If the stock is trading more than the target price, shouldn't the recommendation be a simple SELL?<br />
<br />
<br />
<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-37970145655880328362013-04-17T09:35:00.000+08:002013-04-17T09:35:11.637+08:00The Independent Advisor For MBF Speaks Again....Posted recently: <a href="http://whereiszemoola.blogspot.com/2013/03/if-offer-is-not-fair-how-can-it-be.html">If The OFFER is NOT FAIR, how can it be REASONABLE...</a><br />
<br />
On theSunDaily Business: <a href="http://www.thesundaily.my/news/645150" target="_blank">http://www.thesundaily.my/news/645150</a><br />
<ul>
<li><b>MBf take-over offer not fair but reasonable</b><br />Posted on 25 March 2013 - 10:12pm<br />Last updated on 25 March 2013 - 10:51pm<br /><br />PETALING
JAYA (March 25 ,2013): The offer for the shares and warrants of MBf
Holdings Bhd by a consortium of three companies led by major shareholder
Tan Sri Ninian Mogan Lourdenadin, are deemed not fair but reasonable,
according to independent adviser Affin Investment Bank Bhd.<br /><br />"However,
we are of the view that the offer for the shares and the warrants are
reasonable based on our evaluation and also taking into consideration
that there have been no alternative offers received to date," it said,
advising that shareholders and warrant holders accept the offer.<br /><br />In
an independent advice circular yesterday, Affin Investment said the
offer for the shares is not fair, given that the share offer price is
below the derived valuation range of MBFH shares of between RM2.45 and
RM3.20.<br /><br />The offer represents a 30.6% and 46.8% discount to the
adjusted net asset range of the group. The offer for the warrant is also
not fair, given that the warrant offer price is derived by reference to
the share offer price.<br /><br />Tor Pte Ltd, Nadin Holdings Sdn Bhd,
Impact Action Sdn Bhd and Market Share Investment Ltd through Hong Leong
Investment Bank Bhd has proposed to acquire all the remaining shares in
MBf Holdings and all the remaining warrants which are not already held
by the joint offerors for RM1.70 per share and RM0.70 per warrant<br /><br />Affin Investment Bank said the sale of MBF Cards was a loss of significant contribution to the group's profitability.<br /><br />The
fact that the group's business is largely concentrated in the South
Pacific Island, which are perceived as remote markets, following the
disposal of the MBF Cards, was also seen as a negative point.<br /><br />The
heavy losses incurred by the group's shipping segment since FY ended
Dec 31, 2010 which had drained the group's cash reserves, was another.<br /><br />MBf's revised offer will be open for acceptance until 5pm on April 3.</li>
</ul>
They told the minority shareholders to ACCEPT the deal which is unfair.....<br />
<br />
MBF revised the offer UPWARDS to RM1.775 per MBfH share and 77.5 sen per warrant.<br />
<br />
Guess what the INDEPENDENT ADVISOR has to say this morning...<br />
<br />
Also from theSunDaily: <a href="http://www.thesundaily.my/news/663921" target="_blank">http://www.thesundaily.my/news/663921</a><br />
<ul>
<li><b>MBfH advisor recommends acceptance of 2nd revised offer</b><br />
Posted on 17 April 2013 - 05:40am<br />
<br />
PETALING JAYA (April 17, 2013): Affin Investment Bank Bhd, which is the
independent advisor to the minority shareholders of MBf Holdings Bhd
(MBfH), has given the thumbs-up to MBfH's controlling shareholder and
group CEO Tan Sri Dr Ninian Mogan Lourdenadin's latest attempt to take
the group private.<br />
<br />
In a filing with Bursa Malaysia yesterday, MBfH said while <u><b>Affin
Investment had deemed the second revised offer of RM1.775 per MBfH share
and 77.5 sen per warrant "not fair but reasonable", it is advising its
shareholders to accept it</b></u>.<br />
<br />
"The board (save for the interested directors) concurs with the
recommendation of Affin Investment. Accordingly, the board's comments,
opinions and recommendation as contained in the Independent Advice
Circular remain unchanged," said MBfH.<br />
<br />
The joint offerors for the rest of the MBfH shares are Tor Pte Ltd,
Nadin Holdings Sdn Bhd, Impact Action Sdn Bhd and Market Share
Investments Ltd. Ninian has accumulated 98.51% or 568.8 million shares
in MBfH.<br />
<br />
In a separate filing, MBfH said the joint offerors will still require
further acceptances of 2.4 million shares or 0.42% to invoke the
compulsory acquisition of the remaining MBfH shares.<br />
<br />
"If it fails, shares not held by the joint offerors as at the close of
the offer on April 26, 2013 may not be compulsorily acquired."</li>
</ul>
!!!!!<br />
<br />
<br />
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-17708300.post-462099974963027602013-04-13T11:53:00.000+08:002013-04-16T12:56:32.427+08:00SAY NO to The Relisting Of IOI Properties!On Star Business, a ghastly news was announced!<br />
<br />
<ul>
<li>Saturday April 13, 2013<b><br />
Mixed views on IOI’s plan to re-list property division</b><br />
<br />
PETALING JAYA: Analysts have mixed views on whether the possible re-listing of IOI Corp Bhd's property division would create value for it.<br />
<br />
Early this week, a wire report had stated that IOI Corp was planning an initial public offering (IPO) of its property arm in the fourth quarter of 2013, speculating the total value of the listing to be in the region of RM10bil.<br />
<br />
This would be a huge improvement in size, considering that it was only in 2009 that IOI Corp had bought back its then-listed property arm<b> IOI Properties Bhd for a mere RM310mil in cash and shares, <span style="font-size: large;">valuing the unit at about <span style="color: red;">RM1.3bil</span></span>.</b><br />
<br />
<span style="font-size: large;"><b>“The plan to re-list its property arm is not new. In our sum-of-parts, we value the property business at close to <span style="font-size: x-large;"><span style="color: red;">RM9bil</span></span></b></span><span style="font-size: x-large;"><span style="color: red;">.</span></span><br />
<br />
“We would be positive if the group <span style="font-size: large;"><b>lists its property arm, as it would allow it to unlock valu</b><b>e</b></span> and for investors to better appreciate its property division,” said a CIMB Research analyst.<br />
<br />
She explained that at the moment, the property division was “hidden” and that there wasn't much visibility in terms of its value, future plans and launches in the pipeline.<br />
<br />
“For now, no one knows what IOI Property is worth because it is hidden inside IOI Corp. With the listing, we would obtain more information. We would know a lot more about its launches and future developments.<br />
<br />
“If it were to be listed on its own, then IOI Property would eventually be able to find its own value,” said the CIMB analyst.<br />
<br />
An Alliance Research analyst pointed out that back in 2009,<span style="font-size: large;"><b> IOI Corp had taken IOI Properties private as the company was undervalued, trading at 8.4 times </b><span style="font-size: small;">versus IOI Corp</span></span><b><span style="font-size: small;">, </span></b>which was trading at 15 times back then.<br />
<br />
She said that as at IOI Corp's financial year ended June 30, 2012, the total asset value of the property development and investment segments stood at RM7.7bil, contributing a pre-tax profit of RM538mil or 20% of IOI Corp's total pre-tax profit.<br />
<br />
“While details on the listing are not known, we have doubts whether the move would add value to IOI Corp, given the latter's rich valuations as compared to most property companies.<br />
<br />
“This raises the issue of whether IOI Corp's property division's IPO could be priced at more attractive valuations than IOI Corp,” said the analyst.<br />
<br />
She said that IOI Corp was currently trading at a forward price earnings of 20.7 times on 2013 earnings.<br />
<br />
Another property analyst added that as IOI Property was currently 100% owned by IOI Corp, there was room for value creation.<br />
<br />
“If it were to go for a separate listing, this would mean that the parent company sells down its stake and gets back some value from its assets.<br />
<br />
“Perhaps, it could use that money to expand its business or give it back to shareholders,” said the analyst.<br />
<br />
The analyst pointed out that a separate property listing would also reduce the risk for the plantations side.<br />
<br />
This was because at present, funds from IOI Corp were being used to buy and develop land for its property segment. </li>
</ul>
<br />
Like I had said before, due to the fact that Bursa Malaysia is a listed BUSINESS entity, a relisting simply means a new IPO and new IPO means more business and I have no doubt that Bursa Malaysia would welcome this relisting with open arms.<br />
<br />
I doubt that Bursa Malaysia would care about the minority shareholders who were mightly screwed when IOI Properties were delised back in 2009.<br />
<br />
That ghastly and unreasonable privatisation is explained in detail in the posting:<a href="http://whereiszemoola.blogspot.com/2013/04/why-is-retail-investing-lacking-part-ii.html">Why Is Retail Investing Lacking? (Part II)</a><br />
<br />
In 'short'...<br />
<ul>
<li>Now consider this story (the story of IOI Privatisation) <br />
<br />
You read about the company venturing into another country, just when that country is announcing some interesting projects. You get optimistic about the company, right? Analysts are optimistic too. <br />
<br />
So you invest in it.<br />
<br />
Then came another opportunity.<br />
<br />
Company announce a share split plus rights issue.<br />
<br />
Rights issue can't be that bad, right? Especially when the company is now having hot new project in another country. Times are exciting and the company 'invites' you to invest more money into the company by subscribing to the rights issue.<br />
<br />
So you decided to invest more, more so since you noted that the company was also buying back their own shares.<br />
<br />
The company shares meanwhile started to announce weak set of earnings. Stocks started to decline. <br />
<br />
7 months after you had subscribed to the rights issue, the stock, due to continued weak earnings, fell to its historical lows. The owners of the company too agree that the stock was cheap. So cheap that they decided to privatise it!<br />
<br />
Now get this.<br />
<b><br />
</b> <b>Your cost of shares after the rights issues was 6.25.</b><br />
<b><br />
</b> <b>The company privatisation offer was a very generous 2.60!!!!!!!</b><br />
<br />
OUCH!!!! </li>
</ul>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_z-cCTI9OI_7rHtMjTf0BHN_RkUutcpD96h7WabkU6g53PwfmzbthnQaMdTlW8uQQ8NSUyLVNcgCamWtZnXW5diiFEgOg3UtKjtj_5qHbj1iZmodO7Ek_WnXkLt0030Mu1ZS/s1600/ioip.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="382" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_z-cCTI9OI_7rHtMjTf0BHN_RkUutcpD96h7WabkU6g53PwfmzbthnQaMdTlW8uQQ8NSUyLVNcgCamWtZnXW5diiFEgOg3UtKjtj_5qHbj1iZmodO7Ek_WnXkLt0030Mu1ZS/s640/ioip.JPG" width="640" /></a></div>
<br />
<br />
<br />
<b>Now do consider what was written on the Star Business today.</b><br />
<br />
<b>So previously, IOI saw IOI Properties was undervalued. Like a vulture, IOI capitalised on the cheap valuations by taking it private</b>. <br />
<br />
Did IOI care about its minority shareholders who had subsribed to the rights issue at 6.25 7 months earlier? My opinion is a simple NO since IOI privatisation offer was a generously ridiculous offer of 2.60!<br />
<br />
And IOI even denied publicly the early privatisation rumours!!!!<br />
<br />
Yeah, denied publicly but yet the company did the privatisation!!! <br />
<br />
So when the subsidiary was considered cheap, it took it private.<br />
<br />
Now to UNLOCK value, IOI Corp wants to relist it again!<br />
<br />
Fair game for the minority investors???<br />
<br />
You tell me!<br />
<br />
!!!!!!<br />
<br />
Think about it.<br />
<br />
Given such rampant delisting and relisting of companies, how is the stock exchange going to attract retail investors????<br />
<br />
Yeah, don't cry if the market lacks retail investors!!!<br />
<br />
Remember think about the GAME that it is being played.<br />
<br />
<span style="color: red;"><b>When a stock is undervalued, careful... the stock could be delisted via a cheap privaisation offer.</b></span><br />
<br />
And yeah, they will even dare to tell you it is unfair but hey, the offer is reasonable!!! (Duh!!!)<br />
<br />
<span style="color: red;"><b>And now when they want to seak (unlock) value, they want to sell you the shares by relisting it once more!</b></span><br />
<br />
You like such games?<br />
<br />
<br />
<br />
<br />
<ul></ul>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-47322276733631987192013-04-08T06:25:00.003+08:002013-04-08T09:02:27.162+08:00MSWG Turn To Raise Issue Against NOT FAIR BUT REASONABLEYay!<br />
<br />
On SunDaily: <a href="http://www.thesundaily.my/news/655667" target="_blank">http://www.thesundaily.my/news/655667</a><br />
<br />
<ul>
<li><b>Investors cry foul over "not fair but reasonable" advice</b><br />Posted on 8 April 2013 - 05:37am<br /><br />Presenna Nambiar<br /><br />PETALING
JAYA (April 8, 2013): The Minority Shareholders Watchdog Group (MSWG)
has come out to say that there may be a need to re-look the methodology
in which independent advisers base their advice to minority
shareholders, as more and more investors cry foul over the increasing
number of "not fair but reasonable" recommendations.<br /><br />CEO Rita
Benoy Bushon (pix) told SunBiz in an interview that the watchdog has
been receiving an increasing number of complaints on independent
advisers' call to accept takeover offers that are "not fair but
reasonable".<br /><br />Listing requirements stipulate that listed companies
that are targets of a disposal of all or substantially all of its
assets that may affect its listing status, appoint an independent
adviser to objectively assess the merits of the deal for the benefit of
minority shareholders.<br /><br />The "not fair" statement is normally
attached to the pricing of the offer when compared to quantitative
considerations such as the company's net asset value, whereas the
reasonableness of it is based on non-quantitative considerations such as
market conditions and liquidity of the market.<br /><br />Bushon sees merit
in investors' frustrations, saying that as an investor who is
ultimately faced with the compulsion to exit a listed entity, a major
consideration would be getting a fair exit value of their investment.<br /><br />"The
fair pricing is very important and it depends on various factors
including the sector the company is in and potential of the business in
terms of numbers," Bushon said.<br /><br />"From MSWG's observation, on the
aspect of reasonableness... t<u><span style="font-size: large;"><b>oo much of emphasis is placed on this
subjective element with final recommendations to accept the offer in all
cases where there is a clear intention to delist the company even
though the offer price is grossly unfair with a huge discount to the
intrinsic value. This is what the minority shareholders are complaining
about,"</b></span></u> she added.<br /><br />Bushon also noted that past experiences have seen <span style="font-size: large;"><b>examples of companies that have not revalued their land for 14 years</b></span>.<br /><span style="font-size: large;"><u><b><br />"So
(in instances like this) how can you (an independent adviser) ever come
up with an advice based on a valuation done 14 years ago. That is
difficult to comprehend,</b></u></span>" she added.<br /><br />Bushon suggested that
perhaps there is a need to re-look the yardsticks and criteria that
independent advice letters (IAL) work on, considering investors are
reluctant to heed the advice given, as observed by MSWG.<br /><br />The
recent failed attempt by Hong Leong Financial Group Bhd (HLFG) to take
Hong Leong Capital Bhd private is an example of one advice which did not
convince minority investors, even as independent adviser Affin
Investment Bank Bhd had opined that the offer was "fair and reasonable".<br /><br />HLFG only managed to acquire a 2.24% stake during its offer period.<br /><br />Petroliam
Nasional Bhd's (Petronas) offer for MISC Bhd also saw resistance from
minority shareholders despite the independent adviser on the deal,
AmInvestment Bank, asking minority shareholders to accept it, after
calling it "unfair but reasonable".<br /><br />This resistance eventually
made Petronas, which had been adamant that RM5.30 a share was the "right
price", to revise its offer to RM5.50 per share at the eleventh hour on
Friday.<br /><br />The rules governing IALs have undergone a few changes
over the years, kicked off by a consultation paper published in March
2010, seeking feedback on proposed updates to guidelines on offer
documentation of the Malaysian Code on Take-overs and Mergers.<br /><br />What
started out as a call for comment and advice by independent advisers on
the reasonableness of an offer, evolved to one which set standards that
needed to be adhered to when analysing the fairness and reasonableness
of a takeover offer.<br /><br />Then in September last year, it was decided
that the two considerations: fairness and reasonableness, be independent
of each other. This allowed for independent advisers to recommend that
investors accept an offer even if one of the considerations was not up
to mark.<br /><br />Three months later in December last year, the Securities
Commission (SC) released another document called the "Best Practice
Guide on Independent Advice Letters" for another round of public
comment.<br /><br />The SC said the guide is to clarify the SC's and Bursa
Malaysia's views on the role of an independent adviser, and to provide
guidance on the standards of disclosures in IALs; and augment both
regulators' continuous efforts in raising standards of corporate
governance through the promotion of high quality disclosures.<br /><br /><span style="font-size: large;"><u><b>"Perhaps
another suggestion is to have an over-the-counter platform for those
minorities who wish to still remain in the delisted entity until and
unless a compulsory acquisition is triggered,"</b></u></span> said Bushon.<br /><b><br />"This
would motivate majority shareholders to offer a better price at the
outset and the minority would be more fairly </b>dealt with. (But) this
suggestion needs to be studied more in detail with the implications." </li>
</ul>
Remember this....<br />
<br />
If we continue to allow NOT FAIR BUT REASONABLE advise to continue to be dished out to the minority shareholders, <span style="color: red;"><span style="font-size: large;"><b>we are sending one clear message, which is, you minority shareholders, it is reasonable to accept offers that are not fair!!</b></span></span>.<br />
<br />
Is that acceptable??????<br />
<br />
<br />
<br />
<br />
<ul>
</ul>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-53440389103055202152013-04-07T15:53:00.002+08:002013-04-08T08:17:09.505+08:00Investment Adviser: Just Who Are You Advising For?From the posting: <a href="http://whereiszemoola.blogspot.com/2013/04/business-times-writes-about-unfair-and.html">Business Times Writes About Unfair And Reasonable!</a><br />
<br />
<a href="http://www.blogger.com/profile/06437721219003784491" rel="nofollow">limko</a> said...<br />
<ul><li>What comes to mind is the two occasions when Pharmaniaga planned for privatisation.<br />
On the first privatisation, "independant adviser" advised not to accept the offer, and the exercise did not go through. Subsequently, the price of Pharmaniaga slummed.<br />
On the second privatisation, another "independant adviser" advised to accept, and the exercise completed. Subsequently, the price of Pharmaniaga soars. <br />
On both occasions, the mionrity shareholders got screwed. <br />
Advise or lie?</li>
</ul> Good point.<br />
<br />
For me, right now, there's indeed some changes when compared to previous years but I would say it's nor enough.<br />
<br />
The next step is, we need our minority shareholders to be better advised.<br />
<br />
An unfair order is unfair. End of.<br />
<br />
It should be rejected.<br />
<br />
Calling it 'unfair but reasonable' is just not acceptable.<br />
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-17708300.post-37117683321562528842013-04-06T12:20:00.001+08:002013-04-08T08:17:59.166+08:00Business Times Writes About Unfair And Reasonable!After making several postings on this issue, <a href="http://whereiszemoola.blogspot.com/2013/03/if-offer-is-not-fair-how-can-it-be.html">If The OFFER is NOT FAIR, how can it be REASONABLE?.</a> and <a href="http://whereiszemoola.blogspot.com/2013/03/how-could-it-be-reasonable-to-accept.html">How could it be reasonable to accept an offer which is deemed not FAIR?</a>, Business Times decided to post an opinion on it too. :)<br />
<br />
<ul>
<li>Investors want 'KISS', not word games<br /><br />Published: 2013/04/06<br /><br />STICK TO THE BASICS: Shareholders need crystal clear explanation from those independent advisers<br /><br />WHAT is "not fair but reasonable"? For the life of me, I cannot understand the meaning of it.<br /><br />These days, such term is used so frequently by independent advisers when advising minority shareholders on the worthiness of a corporate exercise.<br /><br />Who pays the independent advisers? If a public-listed company does, then, in theory, all of its shareholders pay for their service. Hence, the shareholders should get a crystal clear explanation from the highly-paid independent advisers.<br /><br />The catch is not on who pays them, but rather, who is in charge of hiring them.<br /><br />Are corporate fees too tempting that layman investors are forced to put up with reports that highlight proposals as being "not fair but reasonable"?<br /><br />Looking back, the only thing that pops into my mind as being unfair but reasonable is being caned in school.<br /><br />Mind you, my "not fair but reasonable" assesment on being caned at schools comes more than two decades after the incident had happened.<br /><br />I had aged and, presumably, gained some wisdom in coming to that conclusion.<br /><br />In the action-packed world that we live in, an average investor does not have the liberty to wait for 10 or 20 years to see if a deal, proposed in the current time, is indeed "not fair but reasonable".<br /><br />As my first boss in Business Times once told me, KISS! (short for "keep it short and simple") So, why can't independent advisers (aka merchant bankers in disguise ) just stick to facts and keep their Shakespearean instinct in their closets?<br /><br />Independent advisers who fancy themselves as talented writers and poets should quit the merchant bank industry altogether.<br /><br />Let's go back to the basics. Independent advisers must only be allowed to recommend to shareholders either to accept or reject a deal.<br /><br /><span style="font-size: large;"><b>If they ask shareholders to accept a certain proposal, then it should be on the assumption that it is a fair and reasonable one</b></span>.<br /><br /><span style="font-size: large;"><b>Rejecting the proposal should be on the basis that it is unfair and unreasonable</b></span>.<br /><br /><b>Independent advisers should not be allowed to be politically correct by disguising a bad proposal as "unfair but reasonable"</b>.<br /><br />Before the next independent adviser contemplates keying in a proposal as "unfair but reasonable", take a minute to unwind by listening to Bob Dylan's "Gotta Serve Somebody".<br /><br />The lyrics go something like this: "You may be the heavyweight champion of the world. You may be a socialite with a long string of pearls. But you're gonna have to serve somebody, yes indeed. It may be the devil or it may be the Lord."<br /></li>
</ul>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-17708300.post-58677295174554189162013-04-02T16:41:00.001+08:002013-04-02T16:41:47.109+08:00Stock Market Is To Make A Big Buck From The Fool Of All Minority Shareholders...<span dir="ltr"><a href="http://www.blogger.com/profile/03389145609425005480" rel="nofollow">kine</a></span> said...<br />
<br />
<ul>
<li>Stock market is for any company to make big buck out from the fool of
all the majority of shareholders. They need to sell/distribute at very
high price to the very greedy & excited investing public &
collect/buy at the very damn dirt cheap price through buy back from
their short selling activities or forceful privatization at the expense
of the very ignorant public.<br />This is the very uncomfortable harsh reality of true life.</li>
</ul>
Yeah it's sad.<br />
<br />
There are so many ways Bursa Malaysia, the country's STOCK EXCHANGE could be better.<br /><br />But sadly, because it's a listed company, a business, I find it difficult to see changes.<br /><br />ALL the CEOs, the present and the past, had repeatedly announce the COMPANY is seeking more revenue.<br /><br />When you hear a stock exchanging seeking revenue, it clearly states the STOCK EXCHANGE is business motivated. The stock exchange just wants to make more money! Which means, company will continue stand a chance of relisting again despite how horrible it treated its minority shareholders in the past.<br />
<br />
And yeah, less than quality stocks will be listed in our stock market.<br />
<br />
Just look at those companies from China listed in our stock exchange.<br />
<br />
Can you smell........Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-33556005564854042952013-04-01T09:34:00.000+08:002013-04-02T08:32:45.406+08:00Why Is Retail Investing Lacking? (Part II)Posted the other day: <a href="http://whereiszemoola.blogspot.com/2013/03/more-on-bursa-ceo-pay-and-lack-of.html">More On Bursa CEO Pay And Lack Of Retail Investor...</a><br />
<br />
Consider the following.<br />
<br />
You hear these advice always. Invest and don't punt. Invest long term. The longer you hold the stock, the better your investment return. When the stock falls, just buy more. Same investment is now cheaper, invest more!<br />
<br />
Now consider this story.<br />
<br />
You read about the company venturing into another country, just when that country is announcing some interesting projects. You get optimistic about the company, right? Analysts are optimistic too. <br />
<br />
So you invest in it.<br />
<br />
<br />
Then came another opportunity.<br />
<br />
Company announce a share split plus rights issue.<br />
<br />
Rights issue can't be that bad, right? Especially when the company is now having hot new project in another country. Times are exciting and the company 'invites' you to invest more money into the company by subscribing to the rights issue.<br />
<br />
So you decided to invest more, more so since you noted that the company was also buying back their own shares.<br />
<br />
<br />
The company shares meanwhile started to announce weak set of earnings. Stocks started to decline. <br />
<br />
7 months after you had subscribed to the rights issue, the stock, due to continued weak earnings, fell to its historical lows. The owners of the company too agree that the stock was cheap. So cheap that they decided to privatise it!<br />
<br />
Now get this.<br />
<b><br /></b>
<b>Your cost of shares after the rights issues was 6.25.</b><br />
<b><br /></b>
<b>The company privatisation offer was a very generous 2.60!!!!!!!</b><br />
<br />
OUCH!!!!<br />
<br />
Now seriously you tell me, who in the right mind want to be a retail investor when incidents like this occur? And to add serious salt to your injury, last year, the local business papers suggested the company was planning to relist its shares again!!!!<br />
<br />
How?<br />
<br />
Isn't this delisting and relisting giving the stock exchange such a horrible stench?<br />
<br />
And you know very well, since the stock exchange is a listed entity, it is a business and as a business, the business will most likely allow the relisting because such exercise will generate revenue for the stock exchange.<br />
<br />
But at what cost?<br />
<br />
You tell me....<br />
<br />
So if retail investors shun our stock exchange, can you really blame them?<br />
<br />
And oh, this story is real. This incident did happen.<br />
<br />
See <a href="http://whereiszemoola.blogspot.com/2009/02/big-ouch-for-ioi-properties.html" target="_blank">http://whereiszemoola.blogspot.com/2009/02/big-ouch-for-ioi-properties.html</a> and <a href="http://whereiszemoola.blogspot.com/2009/03/ioi-properties.html" target="_blank">http://whereiszemoola.blogspot.com/2009/03/ioi-properties.html</a><br />
<br />
This chart says it all...<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_z-cCTI9OI_7rHtMjTf0BHN_RkUutcpD96h7WabkU6g53PwfmzbthnQaMdTlW8uQQ8NSUyLVNcgCamWtZnXW5diiFEgOg3UtKjtj_5qHbj1iZmodO7Ek_WnXkLt0030Mu1ZS/s1600/ioip.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="382" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ_z-cCTI9OI_7rHtMjTf0BHN_RkUutcpD96h7WabkU6g53PwfmzbthnQaMdTlW8uQQ8NSUyLVNcgCamWtZnXW5diiFEgOg3UtKjtj_5qHbj1iZmodO7Ek_WnXkLt0030Mu1ZS/s640/ioip.JPG" width="640" /></a></div>
<br />
And this is the link about the possible relisting... <a href="http://whereiszemoola.blogspot.com/2012/02/ioi-wants-your-money-again-by-relisting.html" target="_blank">http://whereiszemoola.blogspot.com/2012/02/ioi-wants-your-money-again-by-relisting.html</a><br />
<br />
Seriously.<br />
<br />
Think about it.<br />
<br />
When you see incidents like this happen in our stock exchange, won't it scare away retail investors?<br />
<br />
My point again?<br />
<br />
Let me paste what I wrote in my last posting.<br />
<ul>
<li>Bursa, remind yourself you are a stock exchange. Look after the
exchange. Make sure you protect your other customers, the minority
shareholders, fairly. That's the most important thing. Who wants to
invest when they run the risk of being treated unfairly and not being
compensated for taking the risk to invest their hard earned money in
shares? Once the protection is there, slowly but surely, the retail
investors will flow back into the market.</li>
</ul>
<br />
<br />Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-17708300.post-30002573865863780222013-03-29T09:46:00.002+08:002013-03-29T09:52:43.064+08:00More On Bursa CEO Pay And Lack Of Retail InvestorsPosted yesterday: <a href="http://whereiszemoola.blogspot.com/2013/03/why-is-bursa-ceo-getting-such-pay.html">Why Is Bursa CEO Getting Such A Pay Increase?</a><br />
<br />
I have always insisted that because Bursa Malaysia is a listed entity, it is a business and as a business it is profit oriented. The primary focus of a business is to make money. That's the one and only one focus. Make more money. <br />
<br />
Which is why I have no doubt that in my mind that despite the stock exchange being made a mockery for letting business delist and relist anyhow and anyway they like, these relisting will continue to happen. That's my flawed opinion and yes, one can despise it all they want but I doubt that Bursa Malaysia will not say NO to a company seeking relisting.<br />
<br />
Relisting means more business and more business means more money.<br />
<br />
If, in the future, say a company like KFC who was recently taken private, decides to seek listing again, do you think Bursa will say NO?<br />
<br />
It's business yo!<br />
<br />
Back to the CEO pay issue. On today's Business Times. <br />
<ul>
<li> Tajuddin defends remuneration<br />
<b><br />
Roziana Hamsawi Published: 2013/03/29<br />
</b><br />
KUALA LUMPUR: Bursa Malaysia Bhd chief executive officer Datuk Tajuddin
Atan yesterday defended his RM5.5 million remuneration last year, <b>saying
it commensurated with the job challenges</b>.<br />
<br />
<u><b>He said his salary package was evaluated and approved by the board and a
consultant firm and it was an agreed package designed on what was
needed for him to accomplish</b></u>.<br />
<br />
<span style="color: red;"><b>He said the last two years had seen Bursa Malaysia's revenue growing</b></span>, adding that it was not an easy task for him.<br />
<br />
"Operating revenue had gone up by 28 per cent over the last five years
compared to an increase in expenses of only 13 per cent. The jump in
operating revenue was significant in the last two years. Since you asked
me, I can say, 'I think, I did quite well'," he said.<br />
<br />
The issue of Tajuddin's salary package was raised by a minority
shareholder at the exchange's annual general meeting yesterday, who
queried the difference of RM2 million with his salary in 2011, which was
stated as RM3.5 million.<br />
<br />
Speaking after the AGM, Tajuddin, who was former group managing director
of RHB Capital, said when he was appointed to lead the local bourse, he
was tasked with a number of responsibilities.<br />
<br />
They included preparing the exchange to compete with other regional
bourses when the Asean Economic Community is in place by 2015.<br />
<br />
He said last year, Bursa Malaysia made a mark internationally with the
listing of two of the world's top 10 IPOs, namely Felda Global Ventures
Holdings and IHH Healthcare.<br />
<br />
Last year, it ranked among the top five listings destinations in the
world, raising funds from IPOs worth US$7 billion (RM21.7 billion).<br />
<br />
Bursa Malaysia chief financial officer Nadzirah Abd Rashid, meanwhile,
said: <b>"The CEO's package is a share grant plan. It is based on a
three-year key performance indicators and if not achieved, he will not
get the entire package</b>.<span style="color: red;"><b> It is very much linked to his performance</b></span>."<br />
<br />
She added that the RM2 million difference in salary as stated in the
annual report was due to the timing of Tajuddin's appointment as
executive director, which began on April 1 2011.<br />
<br />
On a different development, Tajuddin said Bursa Malaysia is confident
that the country's strong economic growth will continue to fuel listing
interests among local companies.<br />
<br />
As the economy grows, businesses will need capital for growth and will
continue to seek different sources of funding which include the equity
market.<br />
<br />
Tajuddin said the equity market is still a little overhang, pending the
upcoming general election but, "I am certain once this is over, the
second half of this year will see the market picking up again".<br />
<br />
"The Malaysian economy has weathered the global slowdown relatively well
in 2012 and early indicators for 2013 show positive development, in
line with the country's economic prospects and business fundamentals,"
he said.<br />
<br />
Tajuddin noted that Malaysia's home-grown companies are doing well
internationally with nearly 40 per cent of the FBM KLCI companies'
revenue coming from abroad.<br />
<br />
He added that 28 per cent of FTSE Asean 40 are Malaysian public-listed
companies while three of Asean's top five investment banks are from
Malaysia.<br />
<br />
"Last year, we saw foreign investors consistently increasing their
stakes in Malaysian public-listed firms and this is good news for our
capital market," he said.<br />
<br />
Bursa Malaysia posted a net profit of RM151.5 million in 2012, an
increase of four per cent from 2011's performance while operating
revenue was up two per cent to RM388.5 million.<br />
<br />
The derivatives market, which did well last year, is expected to
continue its performance this year due to increased global visibility of
derivatives products, he said.</li>
</ul>
On theSunDaily:<br />
<ul>
<li><b>Bursa seeks to boost retail participation</b><br />
Posted on 29 March 2013 - 05:38am<br />
<br />
Premalatha Jayaraman<br />
<br />
Tajuddin speaking at a press conference after Bursa's AGM in Kuala Lumpur yesterday. NORMAN HIU/theSun<br />
<br />
KUALA LUMPUR (March 29, 2013): Bursa Malaysia Bhd, which is eyeing
moderate growth in all business segments for the financial year ending
Dec 31, 2013 (FY13),<span style="color: red;"><b> will introduce more initiatives to boost retail
investors' participation</b></span> in the equity market, said its CEO Datuk
Tajuddin Atan (pix).<br />
<br />
The exchange is working to come up with services and products that will bring ease of trading to investors.<br />
<br />
"Among the exchanges, yes, we are the lowest (in terms of) retail
participation. This is something that we need to work on very
extensively." he told reporters after the group's AGM here yesterday.<br />
<br />
In 2012, retail participation on Bursa Malaysia was about 23% of average daily value traded.<br />
<br />
"Last year, we saw foreign investors increasing their stake consistently
(throughout) the whole year. I guess this lag effect is something that
our retail participants have always been doing and hopefully with more
information they will join or front run these foreign investors,"
Tajuddin said.<br />
<br />
He said the eRights service launched yesterday, was part of its efforts
to create a more facilitative trading environment for retail investors.<br />
<br />
The service will enable shareholders to suscribe to rights issues via
the ATM and internet banking facilities of participating banks, similar
to the current practice for electronic initial public offering (IPO)
applications via electronic share application.<br />
<br />
"We are continuously taking steps to introduce new initiatives for the
market with the objective to provide a more facilitative trading
environment to attract more investors and issuers, not only within our
domestic market but also the region," he said.<br />
<br />
"I may not be able to help you trade but one thing's for sure, the
exchange will be there to facilitate with products and services,"
Tajuddin added.<br />
<br />
Meanwhile, Bursa's growth this year will continue to be driven by stable income from its equity and derivatives segments.<br />
<br />
"If the market continues to be volatile, there will be more interest. The cash cow is still the equity (market)," said Tajuddin.<br />
<br />
He said the exchange, which had several sizeable IPOs last year, has seen a lot of interest in raising funds in the country.<br />
<br />
"It will not be as big as last year, (but) there is enough interest, and
applications have been submitted to the Securities Commission and
Bursa. Whether they come in or not, it is an issue of timing," he said.<br />
<br />
"The overhang of election holds things (back) a little bit. Hopefully,
we will see some traction in the third and fourth quarter of this year,"
he said.<br />
<br />
Earlier during the AGM, shareholders and the Minority Shareholders
Watchdog Group (MSWG) raised questions with regards to Tajuddin's
remuneration package that was increased to RM5.5 million in 2012 from
RM3.5 million in 2011.<br />
<br />
"MSWG said there was an increase of over 50% but it is not a increase
(in real terms). Datuk (Tajuddin) was with us for just over nine months
in 2011," said Bursa Malaysia's CFO Nadzirah Abd Rashid.<br />
<br />
Tajuddin was appointed as the CEO of Bursa Malaysia on April 1, 2011.<br />
<br />
Nadzirah clarified that the CEO package includes a share grant plan that
is charged up front but only payable should key performance indicators
are met.<br />
<br />
"In terms of accounting, we would charge upfront but delivery (is) in
three years. In the event that the three-year key performance indicator
is not achieved, he (Tajuddin) is not going to get it," she said.<br />
<br />
Bursa also announced the appointment of Datuk Karownakaran @ Karunakaran
Ramasamy, Chai Way Leong and Ghazali Darman to the board from March 28,
2013. </li>
</ul>
Can you see the message in the red bold.<br />
<br />
As a listed company, the CEO pay as mentioned in the news article is performance based.<br />
<br />
Which means revenue is so important. Look at the headline mentioned in the SunDaily.<br />
<br />
That's the focus.<br />
<br />
More revenue means more money.<br />
<br />
That's all to it.<br />
<br />
And I find it so ironic that Bursa cannot understand why retail investors are lacking.<br />
<br />
Look at how companies delist at unreasonable pricings. How to be a retail investor? When stock price go down, the retail investor will be holding on to the stock price. The owners, seeing the cheapness in stock prices, only see opportunity for themselves to take the company private and profit from the cheap prices.<br />
<br />
Look at MBF's privatisation. Does Bursa really want to know why their minority shareholders are so unhappy? <br />
<br />
Look at the quality of the new IPOs. If the companies listed of are of good quality, why do we have companies like<a href="http://whereiszemoola.blogspot.com/2012/03/since-listing-smartag-had-reported.html"><strong><span style="color: #043d70;"> Smartag which had reported losses every quarter since listing? </span></strong></a><br />
<br />
Look at Astro relisting. Why was it allowed to relist based on a higher earnings valuation? Look at its recent earnings. Earnings were way below than what was suggested in its IPO figures.<br />
<br />
Look at another new listing. China Stationary Limited. Company was IPOed at 95 sen. On 21st March 2013, its substantial shareholder dumped shares at 60 sen! Any logic? CSL now? 40.5 sen this morning!<b> Is this what you call a quality new listing</b>?<br />
<br />
Look at the nonsensical <b>not fair but reasonable </b>advise given issued. Why is this being allowed? Is Bursa, by not saying anything on these advices, saying that it's ok for minority shareholders to accept offers that is basically not fair? Who wants to be a retail investor when not fair deals are being shafted left, right and center at them?<br />
<br />
Look at how many fraud cases. Is the punishment just? Look at Megan Media! What happened to this multi million dollar fraud case? Will we see justice?<br />
<br />
Can I go on?<br />
<br />
Yes I can but I won't.<br />
<br />
They are so many valid reasons why retail investors do not want to invest.<br />
<br />
Bursa, for its part, needs to remind itself that its a stock exchange. Business should never been an issue. And as a stock exchange, Bursa Malaysia needs to protect its very core foundation of its house. A house has to be built on strong foundations and for a stock exchange, the minority shareholders is the very core of the foundation.If the minority shareholders aren't taken good care of by the stock exchange, retail investors will always shun the stock market. It's simple as that.<br />
<br />
Why would the retail investors want to invest in shares when the listed companies sees them (retailers) nothing but OTHER PEOPLE's MONEY (OPM)?<br />
<br />
Do the listed companies treat their shareholders fairly?<br />
<br />
Yes, Bursa, remind yourself you are a stock exchange. Look after the exchange. Make sure you protect your other customers, the minority shareholders, fairly. That's the most important thing. Who wants to invest when they run the risk of being treated unfairly and not being compensated for taking the risk to invest their hard earned money in shares? Once the protection is there, slowly but surely, the retail investors will flow back into the market.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-14624701192168723942013-03-28T16:17:00.000+08:002013-03-28T16:17:02.706+08:00Why Is Bursa CEO Getting Such A Pay Increase?On theEdgeMalaysia.com<br />
<ul>
<li><b>Bursa CEO's 57% pay rise spurs questions </b><br />
Business & Markets 2013 <br />
Written by Lee Wen Ai of theedgemalaysia.com <br />
Thursday, 28 March 2013 14:13 <br />
<br />
KUALA LUMPUR (Mar 28): A 57% year-on-year increase in the remuneration
package of BURSA MALAYSIA BHD []'s CEO Datuk Tajuddin Atan grabbed the
attention of Minority Shareholders Watchdog Group and piqued interest
from shareholders at the company’s AGM today.<br />
<br />
Tajuddin’s pay package was raised from RM3.5 million in 2011 to RM5.5 million in 2012.<br />
<br />
A few shareholders raised the question on the CEO’s salary at Bursa's
36th AGM at PWTC today. <u><b>They wanted the board to explain why the CEO's
pay in 2012 was “more than doubled” from the previous year when the
stock exchange's performance was "not impressive"</b></u>.<br />
<br />
"The increase was partly due to a full year's pay in 2012 as compared to
just 9 months' pay in 2011 (because Tajuddin was appointed in April
2011),” said Bursa's chairman Tun Mohamed Dzaiddin Haji Abdullah.<br />
<br />
"The CEO package is competitive with other listed companies and is a
competitive package for a CEO of an exchange. The board is mindful that
fair remuneration is critical to attract and retain the best talents,"
he added.<br />
<br />
At the AGM, <b>a shareholder also asked what Bursa's role was following an
increasing trend of listed companies being taken private, wiping
billions off the exchange. And after several years, these companies got
relisted</b>.<br />
<br />
<u><b>"When [privatisation and relisting of the same companies] happens, I
think someone is making money but not us shareholders,</b></u>" remarked the
shareholder.<br />
<br />
To that question, Tajuddin responded:<br />
<br />
<b>"Bursa has engaged with its stakeholders on this. The conclusion was that these corporate exercises were business decisions</b>.<br />
<br />
<b>"Bursa will continuously look for new quality companies with good
valuations to list on the exchang</b>e, in line with the freer flow of funds
and investors in ASEAN and the ASEAN Trading Link."<br />
<br />
Reporters covering the AGM wer e banned from taking any notes or using recording devices and mobile phones.</li>
</ul>
Yes, why is the Bursa CEO getting such a pay increase?<br />
<br />
Why?<br />
<br />
Then I want to touch in this statement.<br />
<b><br />Bursa will continuously look for NEW QUALITY companies with good valuations to list on the exchange</b>.<br />
<br />
Ahem.<br />
<br />
Seriously?<br />
<br />
Take a recent posting: <a href="http://whereiszemoola.blogspot.com/2013/03/smartag-sinks-deeper.html">Smartag Sinks Deeper</a><br />
<br />
When was Smartag listed? March 2011.<br />
When did Smartag started announcing losses? 18 Aug 2011!! ( See <a href="http://whereiszemoola.blogspot.com/2012/03/since-listing-smartag-had-reported.html"><strong><span style="color: #043d70;">Since Listing, Smartag Had Reported Losses Every Quarter!</span></strong></a> )<br />
<br />
Is Smartag the only such good quality company that was listed recently?<br />
Can you find more?<br />
<br />
How about the stock performance of China Automobile Parts (CAP) since listing?<br />
IPO Price: 68 sen<br />
Closing Price on Listing day: 78 sen (Wanna guess the listing day high?)<br />
Opening price this morning: 37 sen.<br />
<br />
I wonder if this is considered a QUALITY STOCK with GOOD VALUATIONS for the stock exchange investors? <br />
<br />
<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-72943601393114548402013-03-27T08:43:00.000+08:002013-04-08T08:17:59.172+08:00How could it be reasonable to accept an offer which is deemed not fair?How difficult can it be?<br />
<br />
You simply cannot have them independent advisers issuing moronic statements proclaiming that an offer is not fair but reasonable.<br />
<br />
It makes utterly no sense.<br />
<br />
<br />
If such an advice from these so-called professional investment advisers are allowed to continue than the simple message you are sending out is that any listed company owners can continue to simply make unfair offers to their business partners, the minority shareholders, screwing them them of their legal rights to receive a fair share of what the company is worth.<br />
<br />
Is the word FAIR non-existent in the world of the stock market?<br />
<br />
Telling minority shareholders to accept the offer despite the offer being unfair is the ultimate betrayal to the minority shareholders.<br />
<br />
How could it be reasonable to accept an offer which is deemed not fair?<br />
<br />
If the answer is no, then why is them independent advisers given the freedom to issue moronic advice of 'NOT FAIR BUT REASONABLE'?<br />
<br />
Think about it......Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-12131484691130385112013-03-26T09:20:00.001+08:002013-04-08T08:17:59.160+08:00If The OFFER is NOT FAIR, how can it be REASONABLE?On theSunDaily Business: <a href="http://www.thesundaily.my/news/645150" target="_blank">http://www.thesundaily.my/news/645150</a><br />
<ul>
<li><b>MBf take-over offer not fair but reasonable</b><br />Posted on 25 March 2013 - 10:12pm<br />Last updated on 25 March 2013 - 10:51pm<br /><br />PETALING JAYA (March 25 ,2013): The offer for the shares and warrants of MBf Holdings Bhd by a consortium of three companies led by major shareholder Tan Sri Ninian Mogan Lourdenadin, are deemed not fair but reasonable, according to independent adviser Affin Investment Bank Bhd.<br /><br />"However, we are of the view that the offer for the shares and the warrants are reasonable based on our evaluation and also taking into consideration that there have been no alternative offers received to date," it said, advising that shareholders and warrant holders accept the offer.<br /><br />In an independent advice circular yesterday, Affin Investment said the offer for the shares is not fair, given that the share offer price is below the derived valuation range of MBFH shares of between RM2.45 and RM3.20.<br /><br />The offer represents a 30.6% and 46.8% discount to the adjusted net asset range of the group. The offer for the warrant is also not fair, given that the warrant offer price is derived by reference to the share offer price.<br /><br />Tor Pte Ltd, Nadin Holdings Sdn Bhd, Impact Action Sdn Bhd and Market Share Investment Ltd through Hong Leong Investment Bank Bhd has proposed to acquire all the remaining shares in MBf Holdings and all the remaining warrants which are not already held by the joint offerors for RM1.70 per share and RM0.70 per warrant<br /><br />Affin Investment Bank said the sale of MBF Cards was a loss of significant contribution to the group's profitability.<br /><br />The fact that the group's business is largely concentrated in the South Pacific Island, which are perceived as remote markets, following the disposal of the MBF Cards, was also seen as a negative point.<br /><br />The heavy losses incurred by the group's shipping segment since FY ended Dec 31, 2010 which had drained the group's cash reserves, was another.<br /><br />MBf's revised offer will be open for acceptance until 5pm on April 3.</li>
</ul>
Incomprehendable advice!<br />
<br />
If an offer is not fair, then it only means it is not fair.<br />
<br />
Think about it.<br />
<br />
Does it make sense to accept an offer that it is not offer?<br />
<br />
Does it?<br />
<br />
If it doesn't make sense, how then can it be reasonable?<br />
<br />
Oh my England!!!!!!!!!!!!!!<br />
<span style="color: red;"><b><br /></b></span>
<span style="color: red;"><b>No wait... I forgot. This is the stock market. The minority shareholders is there to be screwed. And what better way to screw the minorities than to have investment advisers making advice such as</b></span> <span style="font-size: large;"><b>not fair but reasonable</b></span><b>!!!!</b><br />
<br />
<br />
<br />
<br />
<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-51994575878832467032013-03-23T09:09:00.002+08:002013-03-23T09:31:09.422+08:00Is Tony Fernandes An Angel? Does He Know The Future?Published on Business Times:<br />
<ul>
<li><span style="color: red;"><b>AirAsia, Lion Air chiefs play down rivalry</b></span><br />
<br />
<b>Published: 2013/03/23</b><br />
<br />
KUALA LUMPUR: AirAsia boss Tan Sri Tony Fernandes questioned his rival's growth plans after Lion Air struck a US$24 billion (RM75 billion) Airbus order while pledging to preserve his own ties with the European jetmaker.<br />
<br />
As competition intensifies between Southeast Asia's largest budget carriers, Lion Air co-founder Rusdi Kirana shot back by targeting sharp growth in AirAsia's domestic Malaysian market.<br />
<br />
In a realignment of industry loyalties, Indonesia's Lion Air loosened exclusive ties with Boeing this week to place a 234-plane order with Airbus, which is also sole supplier to AirAsia.<br />
<br />
<b>Asked if he was upset about the blockbuster deal between his top supplier and his closest rival, Fernandes said</b>, <span style="color: red;"><b>"Why should I be? I think Lion has probably bitten off more than it can chew. We are focused on ourselves</b></span>".<br />
<br />
<b>Lion Air co-founder Rusdi mocked any suggestion that the airline had over-extended itself</b>.<br />
<br />
<span style="font-size: large;"><span style="color: red;"><b>"Is he an angel? Does he know the future?"</b></span></span> <b>Rusdi said when asked about Fernandes's comments</b>.<br />
<br />
The two airline chiefs discussed the deal in separate interviews.<br />
<br />
Lion Air launched its services in Malaysia yesterday through a partially owned venture, Malindo Air, while AirAsia says it is filling planes successfully in Indonesia.<br />
<br />
<b>Rusdi said Malindo hopes to operate 100 Boeing aircraft within 10 years</b>.<br />
<br />
<u><b>The rapid rise of both airline groups has been channelled through exclusive partnerships with jetmakers Airbus and Boeing - making the two airline bosses star players in a broader power struggle in the US$100 billion jet industry</b></u>.<br />
<br />
Those battle lines were abruptly redrawn when Lion Air announced the Airbus order in Paris on Monday, doubling up on a similar order placed with Boeing just over a year ago.<br />
<br />
<b>AirAsia has taken delivery of more than <span style="color: red;">100 Airbus A320 aircraft out of a total of 475 it has ordered</span></b>.<br />
<br />
Airlines can save money by running one type of fleet but can also obtain good pricing by forcing suppliers to compete.<br />
<br />
Fernandes, who bought AirAsia together with its fleet of two Boeing 737s in 2001 and then built it into the largest operator of Airbus A320s, pledged to stick with the European planemaker.<br />
<br />
Asked whether he might consider Boeing for future orders, he reiterated he wanted to stick with one type of aircraft. The Malaysian entrepreneur studied new jets from Canada's Bombardier before striking his most recent Airbus deal, however.<br />
<br />
"I run a proper business not an emotional business," Fernandes said in an electronic interview.<br />
<br />
"They have to sell planes. How can I stop them?" he said of Airbus's three-year courtship of Lion Air.<br />
<br />
Low-cost airlines prefer operating one type of aircraft to reduce the cost of parts and separate crews. But the sheer size of some of the world's largest fleets has raised questions over whether one supplier can meet the needs of the largest airlines.<br />
<br />
Air Berlin and Norwegian Air have a mixed portfolio of jets.<br />
Bankers and lessors have expressed concerns that a series of record-breaking orders risks flooding Southeast Asia with too many narrowbody planes, despite projections of sharp growth.<br />
<br />
"The world is big. There is a lot of space for everybody. We should accept that competition is normal," Rusdi said.<br />
<br />
Asia is expected to double its fleet in the next 20 years. Reuters</li>
</ul>
Tony said <span style="color: red;"><b>Lion Air had bitten off more than it can chew</b></span>???<br />
<br />
Haha!<br />
<br />
It was just on Thursday that<a href="http://whereiszemoola.blogspot.com/2013/03/tony-fernandes-asia-can-take-lot-of.html"> Tony Fernandes said ‘Asia can take a LOT of planes.’</a><br />
<br />
<ul>
<li><u><b>“There are 3 billion people in Asia, there are 300 million people in
America. America has about three times more planes right now than Asia,”</b></u>
Fernandes said in a Bloomberg Television interview at the Credit Suisse
Asian Investment conference in Hong Kong yesterday. “So it can take a
lot of planes.”</li>
</ul>
Yeah, if Asia can take a lot of planes, why make comments like Lion Air 'had bitten off more than it can chew?'<br />
<br />
Why?<br />
<br />
I have always questioned about Business Times's choice of article titles.<br />
<br />
Here's the screen shot of today's Business Times article.<br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAdPRL-7d7V5jgSU7LhApumEsCeLeNzwud4zyS0UJzDf6YGvsEacpWQB7VtCjWuYC-UyjS7vuZcgvYH5PkePQpYsVIfCUlQq3BEn2ik-S1CnCNOiYT0PVzasx7CbAcsklZC3sv/s1600/airasia.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAdPRL-7d7V5jgSU7LhApumEsCeLeNzwud4zyS0UJzDf6YGvsEacpWQB7VtCjWuYC-UyjS7vuZcgvYH5PkePQpYsVIfCUlQq3BEn2ik-S1CnCNOiYT0PVzasx7CbAcsklZC3sv/s640/airasia.JPG" width="564" /></a></div>
As mentioned on Business Times, this article originated from Reuters.<br />
<br />
For some strange reason, I decided to read Reuters article too. Dunno why. :P<br />
<br />
<a href="http://www.reuters.com/article/2013/03/21/us-airasia-lion-idUSBRE92K0QU20130321" target="_blank">http://www.reuters.com/article/2013/03/21/us-airasia-lion-idUSBRE92K0QU20130321</a><br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2l73pdByPutyZ_wo8QTT6TfOd6a_fJQx7wbIOaSh391cvealTa_XIxq4Z4whmr7drOiZ_GV0G7ugccdAlNhkwqNFy5xRVSEokXuqRALKG3PxTP1y2oiWZVcCh2pwDAOqd2_Ku/s1600/airasia2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="375" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2l73pdByPutyZ_wo8QTT6TfOd6a_fJQx7wbIOaSh391cvealTa_XIxq4Z4whmr7drOiZ_GV0G7ugccdAlNhkwqNFy5xRVSEokXuqRALKG3PxTP1y2oiWZVcCh2pwDAOqd2_Ku/s400/airasia2.JPG" width="400" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFi_k-8b5jQ02VH1RcvLxsyRFojftkw2P_LU_uIk035KPlJ5whMxSyueKDDa6zi_bL_-zrk7ISVHtquDEQVW0Xyarw-9DmErBolcQH05nH7XMFeHX_LHgNnZxmHzV3naqRrs9r/s1600/airasia2.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFi_k-8b5jQ02VH1RcvLxsyRFojftkw2P_LU_uIk035KPlJ5whMxSyueKDDa6zi_bL_-zrk7ISVHtquDEQVW0Xyarw-9DmErBolcQH05nH7XMFeHX_LHgNnZxmHzV3naqRrs9r/s640/airasia2.JPG" width="496" /></a></div>
<br />
As you can see the article is the same!!!!<br />
<br />
Only difference is the title!!!<br />
<br />
The original title from Reuters is <b>"AirAsia, Lion Air bosses spar over plane orders"</b>.<br />
Business Times however decided the title should be <span style="color: red;"><b>"AirAsia, Lion Air chiefs play down rivalry". </b></span><br />
<br />
Don't you wonder why Business Times always have to be so creative with its article titles?<br />
<br />
<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-52020650439373657962013-03-22T09:30:00.002+08:002013-03-22T09:53:07.520+08:00And Finally Axis Inc's ex-Directors Are Charged With FraudOn 31 July 2008, I wrote about <a href="http://whereiszemoola.blogspot.com/search/label/Axis%20Inc">Axis Inc</a>. The stock was trading at 2.00 on 11 July 2008. By 30 Jul 2008, the stock price collapsed to 35 sen!<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghqg7jXI1qOo4FU188Nr5wKjk-Z8_N-FPtbGXv-cGpWfonRB0gyDLMfmXk-mccgEO4Oqzo4iv2__YkKs3jiUOXYwCw62Kv_NNppHFW3Z3TQ700aYWJb_BLBTuC7UkxD-zojvbFKQ/s400/axis.JPG"><img border="0" height="478" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghqg7jXI1qOo4FU188Nr5wKjk-Z8_N-FPtbGXv-cGpWfonRB0gyDLMfmXk-mccgEO4Oqzo4iv2__YkKs3jiUOXYwCw62Kv_NNppHFW3Z3TQ700aYWJb_BLBTuC7UkxD-zojvbFKQ/s640/axis.JPG" width="640" /></a><br />
<br />
After the plunge, when queried, Axis announced that its autditors had unresolved issues A quick examination of Axis Inc's quarterly earnings would have shown that its receivables ballooned.<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgj7nVbtktl-r7fKC6G5wIrU2YZyDu8FDmOO3SC-_eISAr_mGqLPkaGOxF_2G1Qno7wCufCqx7jz4MLda5cy1-8RrcmPqyRWfzoSlEKX4utO58gULHqx4zN9qOhAQ8iq-lGEhf54Q/s400/axis1.JPG"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgj7nVbtktl-r7fKC6G5wIrU2YZyDu8FDmOO3SC-_eISAr_mGqLPkaGOxF_2G1Qno7wCufCqx7jz4MLda5cy1-8RrcmPqyRWfzoSlEKX4utO58gULHqx4zN9qOhAQ8iq-lGEhf54Q/s640/axis1.JPG" /></a><br />
<br />
More details were explained in the posting <a href="http://whereiszemoola.blogspot.com/2008/08/deeper-look-at-axis-inc.html">A Deeper Look At Axis Inc</a><br />
<br />
On 31 Jul 2008, the following statement stood out in Axis announcement.<br />
<br />
<ul>
<li><span style="color: red;"><b>The external auditor, Messrs Horwath are unable to obtain sufficient appropriate audit evidence and explanations to ascertain the following:- (b) the recoverability of the outstanding balances due from the Contract Manufacturers (net of the settlement subsequent to 31 March 2008) in relation to the trade receivables and advances) </b></span></li>
</ul>
<br />
Receivables had ballooned and the external auditors states that they are unable to obtain sufficient audit data!<br />
<br />
More drama unfolded a few days later. On 3 Aug 2008. claimed it might have to write off a whopping 161 million from its accounts!<br />
<br />
The following was taken from a Business Times article .<a href="http://whereiszemoola.blogspot.com/2008/08/update-on-axis-inc.html">http://whereiszemoola.blogspot.com/2008/08/update-on-axis-inc.html</a><br />
<ul>
<li> The company said its external auditor, Messrs Horwath, was not able to obtain sufficient evidence and explanation to verify three issues.<br />
<br />
<span style="color: red;"><b>One is an amount of RM105 million due from contract manufacturers</b></span>, which is part of other receivables as at March 31 2008.<br />
<br />
<b>This is a big jump from RM11 million in the previous financial year</b>. Subsequent to the balance sheet date, RM20 million has been settled by the contract manufacturers.<br />
<br />
<span style="color: red;"><b>Secondly, the contract manufacturers also owed the group RM28 million for sales of fabrics by the group to the contract manufacturers.<br />
<br />
Finally, prepayments of RM32 million were made to certain suppliers for the supply of embroidery services, purchase of fabrics and accessories, from which only RM11 million of these services and goods were received by the group</b></span>.<br />
<br />
The balance (of goods and services) is expected to be settled by the end of September 2008.<br />
<br />
The contract manufacturers are LA (Cambodia) Garment Pte Ltd, Vivatino Design (Cambodia) Pte Ltd and United Garment (Vietnam) Co Ltd.<br />
<br />
These manufacturers are in a strategic alliance agreement with a subsidiary of Axis, where the manufacturers receive a 25 per cent advance payment of the value of a confirmed order for the cutting and sewing of the garments.<br />
<br />
Since Messrs Horwath was unable to form an audit opinion, Axis intends to carry out a special audit. It told Bursa Malaysia on Thursday that the company can only say how long it needs to settle the audit issues once the board appoints an independent auditor for the special audit. </li>
</ul>
I had almost forgotten all about Axis Inc until 2010. On July 2010, <a href="http://whereiszemoola.blogspot.com/2010/06/axis-inc-lodges-police-report.html">Axis Inc Lodges Police Report</a>!!<br />
<br />
Yes more drama!<br />
<br />
A police report was made because documents and records belonging to Axis Inc went missing!!! <br />
<ul>
<li>KUALA LUMPUR: AXIS INCORPORATION BHD 's board of directors has <b>lodged a police report over several official documents and records belonging to Axis and its units which have gone missing</b>. <br />
<br />
It said on Friday, June 11 that it had on Wednesday<span style="color: red;"><b> lodged the report over the missing records of the company and its units Asiapin Sdn Bhd, Chongee Enterprises Sdn Bhd and GBC Marketing Pte Ltd from 2004 to 2008 at the offices in Johor Baru, Tangkak and in Singapore</b></span>. <br />
<br />
The missing records<b> included documents in relation to the purchase of machinery sent to contract manufacturers in Cambodia and/or Vietnam; bank statements and cheque butts; payment vouchers and supporting documents for payments made to the contract manufacturers in Cambodia</b>. <br />
<b><br />
Also missing were documents, letters, e-mails and correspondences between Axis group and</b> <span style="color: red;"><b>the contract manufacturers; documents in relation to the orders placed with the contract manufacturers by buyers; documents of raw materials bought for the contract manufacturers (ncluding purchase orders and delivery orders</b></span>). <br />
<br />
<b>The report also claimed that documents on the account of monies received from the Bumiputera issue in 2004 and the sale of Ganad assets in 2007-2008 were missing</b>. <br />
<br />
<b>"As a result of the above missing records, Axis Group of companies in 2009 had to write off substantial amount of its assets and receivables due to the lack of documentary support of these assets and receivables,</b>" it said. The company said the present Axis Board was unable to answer certain queries posed by Bursa Malaysia Securities Bhd.<br />
<br />
</li>
</ul>
<div style="text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRzx06OzaDvOxuDh8hpiu35yn66HRVKoO3dL5OeHxOp9wTEFslkXAIIqgQoO9-wshmhv0Iy4jgdFJExRtPXtzHnRwqbnGFqzYCCPhD9d5yWCGLGkXPZC3heCjtsFm2CZqQvmo3/s400/p1-zarinahqtcht.jpg"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRzx06OzaDvOxuDh8hpiu35yn66HRVKoO3dL5OeHxOp9wTEFslkXAIIqgQoO9-wshmhv0Iy4jgdFJExRtPXtzHnRwqbnGFqzYCCPhD9d5yWCGLGkXPZC3heCjtsFm2CZqQvmo3/s320/p1-zarinahqtcht.jpg" /></a> </div>
<br />
A month later, I wrote the following: <a href="http://whereiszemoola.blogspot.com/2010/07/stock-manipulation-on-axis-inc-dealer.html">Stock Manipulation On Axis Inc: Dealer Charged</a><br />
<br />
Totally unreal!<br />
<br />
<b>We had accounting issues, police report, missing documents and now stock manipulation! </b><br />
<br />
Let me reproduce that posting here once again. On the Edge Financial Daily <a href="http://www.theedgemalaysia.com/in-the-financial-daily/169575-dealers-rep-sanctioned-for-false-trading-market-manipulation.html">Dealer’s rep sanctioned for false trading, market manipulation </a> <br />
<ul>
<li>Dealer’s rep sanctioned for false trading, market manipulation<br />
Written by Loong Tse Min <br />
Friday, 09 July 2010 11:06 <br />
<br />
KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded and fined a commissioned dealer’s representative (CDR) of Kenanga Investment Bank Bhd RM100,000 for false trading and market manipulation in the trading of Axis Incorporated Bhd shares. <br />
<br />
In a statement yesterday, Bursa Securities said it ordered that<b> Lee Beng Huat </b>be struck off the register, if he was still a registered person of the exchange. <br />
<br />
The exchange said Lee had carried out <b>false trading and market manipulation involving about 41 million Axis shares, out of the market turnover of 104 million Axis shares, for 87 trading days in 2006 and 2007</b>. <br />
<br />
It said during that period, <u><b>Lee had dealt in Axis shares mainly through the accounts of 10 clients</b></u>. “<span style="color: red;"><b>He had entered buy and sell orders which were manipulative in nature and which had led to false or misleading appearance of active trading in, or market for, Axis shares and tantamount to stock market manipulations,” </b></span>Bursa Securities said, adding that Lee had breached trading rules. <br />
<br />
It said the dealing in Axis shares by Lee via the 10 accounts, which were the top buyers and sellers during the period, had several characteristics: <br />
<br />
<span style="color: red;"><b>1. Entry of orders which were several bids lower than the last done price with no real intention to have the buy orders matched. <br />
<br />
2. Lee also engaged in order splitting, entering a series of buy orders in succession through any one of the 10 accounts with the same price. These buy orders gave rise to and created an impression of continuous demand for Axis shares which led to false or misleading appearance of active demand/market for Axis shares. <br />
<br />
3. The buy and sell orders executed in the 10 accounts: </b></span><br />
<br />
<b>• had cross-trades which were matched among each other for about 12 million units of Axis shares involving Lee as their common CDR; <br />
• resulted in the buy and sell transactions of Axis shares in the 10 accounts without any change to the beneficial ownership of Axis shares (NCBO trades) and during the relevant period, there were 65 NCBO trades involving 385,800 units of Axis shares; <br />
• were frequently matched with the corresponding orders keyed in by another CDR from another broker which indicated that there were some form of pre-arrangements for these trades to be matched; <br />
• resulted in trades which were rolled over periodically with the same or almost the same block of Axis shares which gave rise to the manipulative trading activities; and <br />
• had trades which were subsequently amended to other clients’ accounts resulting in a change of the original party to the contract which is not permitted. </b><br />
<br />
<span style="color: red;"><b>Bursa Securities said Lee, by engaging in the manipulations, managed to sell about 72% of the sell orders (40.98 million out of 56.67 million units of sell orders entered for the 10 accounts) and bought about 55% of the buy orders (41.6 million out of 76.14 million units of the 10 accounts’ buy orders)</b></span>. <br />
<br />
It said the higher volume and percentage of the buy orders, which were subsequently cancelled and/or lapsed due to the orders being lower than the last done price resulting in lower percentage of buy orders matched, gave an impression of and created an inflated demand for Axis shares. <br />
<br />
This, it said, led to a misleading appearance of an active market for Axis shares. <br />
<br />
Bursa Securities said Lee had failed to take heed of the concerns raised by the exchange on his irregular trading activities in Axis shares in the 10 accounts but had continued to trade in the irregular and manipulative manner. <br />
<br />
This article appeared in The Edge Financial Daily, July 9, 2010. </li>
</ul>
Hmm... as stated in the article<br />
<br />
<b>"Lee had carried out false trading and market manipulation involving about 41 million Axis shares, out of the market turnover of 104 million Axis shares, for 87 trading days in 2006 and 2007. ". </b><br />
<br />
Here is the chart of Axis between 2006 and 2007... yeah... I can see the massive volume...<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPfTZ4vcVta5ZsFyENshdAsCi0-InAmqc_GOw3b_jk-EtRgW8-8qcY1yY8uq81W4rgqlQ8lwv7wexcwlLfJbFbWVAUePF_Mb_1-MBhJrSzMY3cumHAKote_LKGbN3jgvHGvPZq/s400/axis.JPG"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPfTZ4vcVta5ZsFyENshdAsCi0-InAmqc_GOw3b_jk-EtRgW8-8qcY1yY8uq81W4rgqlQ8lwv7wexcwlLfJbFbWVAUePF_Mb_1-MBhJrSzMY3cumHAKote_LKGbN3jgvHGvPZq/s640/axis.JPG" /></a><br />
<br />
And what's interesting is what happened after 2008... here's the chart from 1 Jan 2008 to May 2009.<br />
<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9nQuhhgFj76_p0KR3sLdm4vMHLnjccwxLHq78J-q_ktLQfPw1h8OMnnnw9u1vGUafPm0-oFM__X0WYigSQnZtR5rNUbb_Vat_6gJCXAM8PRKA5SN1nzcsBWfwYY8Tw6fefoSX/s1600/axis.JPG"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9nQuhhgFj76_p0KR3sLdm4vMHLnjccwxLHq78J-q_ktLQfPw1h8OMnnnw9u1vGUafPm0-oFM__X0WYigSQnZtR5rNUbb_Vat_6gJCXAM8PRKA5SN1nzcsBWfwYY8Tw6fefoSX/s640/axis.JPG" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh9nQuhhgFj76_p0KR3sLdm4vMHLnjccwxLHq78J-q_ktLQfPw1h8OMnnnw9u1vGUafPm0-oFM__X0WYigSQnZtR5rNUbb_Vat_6gJCXAM8PRKA5SN1nzcsBWfwYY8Tw6fefoSX/s1600/axis.JPG"></a> <br />
<br />
I wonder who were the big sellers were when the shares plunged in 2008. :P <br />
<br />
Ok it's not very clear (LOL! yeah.. what's new! :P ) ... anyway, remember the posting <a href="http://whereiszemoola.blogspot.com/2010/06/axis-inc-lodges-police-report.html">Axis Inc Lodges Police Report!</a>? I had an Axis chart posted? <br />
<br />
Let me post an ammended chart now. :P ( I have now crossed out 2007 stock bumper year and changed it to 2007 Stock Manipulation time! :P )<br />
<br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOUen_VWpdvk-MoRmUnnFVeEVX78jDsJMxUtFOaxjeQFsg7ChQHMf4YOFlWKMFSmZz4FCNvVsbThK9h1b1crOgZCpywB8T4r8hsqfXZBoCgKvAa9DRJ46IRqw2-R8-VezzJd-J/s1600/axis.JPG"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOUen_VWpdvk-MoRmUnnFVeEVX78jDsJMxUtFOaxjeQFsg7ChQHMf4YOFlWKMFSmZz4FCNvVsbThK9h1b1crOgZCpywB8T4r8hsqfXZBoCgKvAa9DRJ46IRqw2-R8-VezzJd-J/s640/axis.JPG" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOUen_VWpdvk-MoRmUnnFVeEVX78jDsJMxUtFOaxjeQFsg7ChQHMf4YOFlWKMFSmZz4FCNvVsbThK9h1b1crOgZCpywB8T4r8hsqfXZBoCgKvAa9DRJ46IRqw2-R8-VezzJd-J/s1600/axis.JPG"> </a> <br />
<br />
Now see the bottom arrow on the volume... <br />
<br />
Can you see what it suggests? Can you? <br />
<br />
Anyway.... I am glad that the dealer was caught but... I am wondering... is the dealer the chief 'tukang masak'? (do check out some of the comments posted <a href="http://www.blogger.com/comment.g?blogID=17708300&postID=6931647163956148008">http://www.blogger.com/comment.g?blogID=17708300&postID=6931647163956148008</a><a href="http://www.blogger.com/comment.g?blogID=17708300&postID=6931647163956148008"> )</a> <br />
<br />
Let me repeat the this one sentence: the dealer that was charged, was said to <b>"carried out false trading and market manipulation involving about 41 million Axis shares, out of the market turnover of 104 million Axis shares, for 87 trading days in 2006 and 2007.</b>"<br />
<br />
Think about it...<br />
Think about the SIZE of the manipulation.<br />
Think about the SIZE of missing accounts.<br />
<br />
On today's Sun Daily:<a href="http://www.thesundaily.my/news/642899">3 Axis ex-directors charged with fraud</a><br />
<ul>
<li><b><a href="http://www.thesundaily.my/news/642899"></a> 3 Axis ex-directors charged with fraud </b><br />
Posted on 22 March 2013 - 05:40am <br />
PETALING JAYA (March 22, 2013): <br />
<br />
The Securities Commission (SC) has charged three former directors of garment manufacturer, Axis Incorporation Bhd for<b> providing false information</b> to Bursa Malaysia between 2006 and 2008. <br />
<br />
<b>Koh Tee Jin, Saipuddin Lim and Lee Han Boon were each charged with five counts of furnishing false statements</b> relating to the revenue of Axis to Bursa. <br />
<br />
<u><b>If convicted, the three ex-directors will be liable to a fine not exceeding RM3 million or imprisonment for a term not exceeding 10 years for each charge or both</b></u>. <br />
<br />
In a statement yesterday, the SC said the charges were in relation to false statements contained in Axis' four quarterly reports for the financial year 2007 and the quarter ended March 31, 2008. <br />
<br />
Koh, 47, Saipuddin, 54, and Lee, 32,<b> were each granted bail of RM100,000 with two sureties by the Sessions Court and were required to surrender their passports to the court.</b> The matter has been fixed for case management on May 21, 2013. <br />
<b><br />
Axis was delisted from Bursa in November 2010</b>. <br />
<br />
"We will continue to bring enforcement actions to ensure accurate and timely disclosure of financial information by listed companies as this is an important aspect in upholding integrity and investor confidence in the capital market," said the SC. </li>
</ul>
<br />
Fine of 3 million and a jail term not exceeding 10 years for each charge or both? <br />
<br />
Is it enough? Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-17708300.post-82111125790464765372013-03-21T16:11:00.002+08:002013-03-21T16:11:54.554+08:00Two Cows<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX2dJKs8EhFpVwhB-T3vb5Wtah8ZOWmjGpefxMaRGnPwWA3U_DmHuFReEc4OaMf7u_qHg733wvuy_5kY9dAsw4kFccH-06L5TTIIbF_x8gNnIbsreQCRQg2fQS53Ww_rBrHH40/s1600/two+cows.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiX2dJKs8EhFpVwhB-T3vb5Wtah8ZOWmjGpefxMaRGnPwWA3U_DmHuFReEc4OaMf7u_qHg733wvuy_5kY9dAsw4kFccH-06L5TTIIbF_x8gNnIbsreQCRQg2fQS53Ww_rBrHH40/s640/two+cows.jpg" width="478" /> </a></div>
<br />
<br />
<br />
SOCIALISM<br />
You have 2 cows.<br />
You give one to your neighbour<br />
<br />
COMMUNISM<br />
You have 2 cows.<br />
The State takes both and gives you some milk<br />
<br />
FASCISM<br />
You have 2 cows.<br />
The State takes both and sells you some milk<br />
<br />
NAZISM<br />
You have 2 cows.<br />
The State takes both and shoots you<br />
<br />
BUREAUCRATISM<br />
You have 2 cows.<br />
The State takes both, shoots one, milks the other, and then<br />
throws the milk away<br />
<br />
TRADITIONAL CAPITALISM<br />
You have two cows.<br />
You sell one and buy a bull.<br />
Your herd multiplies, and the economy grows.<br />
You sell them and retire on the income<br />
<br />
ROYAL BANK OF SCOTLAND (VENTURE) CAPITALISM<br />
You have two cows.<br />
You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemptionfor five cows.<br />
The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.<br />
The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new president of the United States , leaving you with nine cows. No balance sheet provided with the release.<br />
The public then buys your bull.<br />
<br />
SURREALISM<br />
You have two giraffes.<br />
The government requires you to take harmonica lessons.<br />
<br />
AN AMERICAN CORPORATION<br />
You have two cows.<br />
You sell one, and force the other to produce the milk of four cows.<br />
Later, you hire a consultant to analyse why the cow has dropped dead.<br />
<br />
A GREEK CORPORATION<br />
You have two cows. You borrow lots of euros to build barns, milking sheds, hay stores, feed sheds, dairies, cold stores, abattoir, cheese unit and packing sheds.<br />
You still only have two cows.<br />
<br />
A FRENCH CORPORATION<br />
You have two cows.<br />
You go on strike, organise a riot, and block the roads, because you want three cows.<br />
<br />
A JAPANESE CORPORATION<br />
You have two cows.<br />
You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk.<br />
You then create a clever cow cartoon image called a Cowkimona and market it worldwide. <br />
<br />
AN ITALIAN CORPORATION<br />
You have two cows, but you don't know where they are.<br />
You decide to have lunch.<br />
<br />
A SWISS CORPORATION<br />
You have 5000 cows. None of them belong to you.<br />
You charge the owners for storing them.<br />
<br />
A CHINESE CORPORATION<br />
You have two cows.<br />
You have 300 people milking them.<br />
You claim that you have full employment, and high bovine productivity.<br />
You arrest the newsman who reported the real situation.<br />
<br />
AN INDIAN CORPORATION<br />
You have two cows.<br />
You worship them.<br />
<br />
A BRITISH CORPORATION<br />
You have two cows.<br />
Both are mad.<br />
<br />
AN IRAQI CORPORATION<br />
Everyone thinks you have lots of cows.<br />
You tell them that you have none.<br />
No-one believes you, so they bomb the ** out of you and invade your country.<br />
You still have no cows, but at least you are now a Democracy.<br />
<br />
AN AUSTRALIAN CORPORATION<br />
You have two cows.<br />
Business seems pretty good.<br />
You close the office and go for a few beers to celebrate.<br />
<br />
A NEW ZEALAND CORPORATION<br />
You have two cows.<br />
The one on the left looks very attractive...<br />
<br />Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-17708300.post-61430161829904881772013-03-21T09:15:00.000+08:002013-03-21T09:15:07.498+08:00Tony Fernandes: ‘Asia can take a LOT of planes.’Published on Star Business:<br />
<br />
<ul>
<li>Thursday March 21, 2013<b><br />
Asia can absorb more aircraft, says AirAsia chief Tony Fernandes</b><br />
<br />
HONG KONG: <b>Asia will be able to take in more aircraft as economic growth
and a population of more than 3 billion people will sustain travel
demand, </b>said AirAsia Bhd group chief executive officer of AirAsia Tan
Sri Tony Fernandes.<br />
<br />
<u><b>“There are 3 billion people in Asia, there are 300 million people in
America. America has about three times more planes right now than Asia,”</b></u>
Fernandes said in a Bloomberg Television interview at the Credit Suisse
Asian Investment conference in Hong Kong yesterday. “So it can take a
lot of planes.”<br />
<br />
<u><b>The comments come after Indonesian budget carrier PT Lion Mentari
Airlines ordered 234 aircraft from Airbus SAS this week its second
commitment to purchase more than 200 planes in two years stoking
concerns of overcapacity in Asia.</b></u> More than a dozen budget airlines
began operations in Asia-Pacific in the past 15 years as economic growth
in China, India and South-East Asia enables more people to fly for the
first time.<br />
<br />
The growing population in Asia was expected to help fill the planes,
said Fernandes, whose AirAsia group expected to carry 43 million
passengers this year. Eleven years ago, the airline carried 200,000
passengers, he said.<br />
<br />
“I wouldn't say there are too many planes in Asia,” Fernandes said.<b> “We
have 500 planes and we fly in six countries. Lion Air is in Indonesia
and a hybrid in Malaysia. Asia can take the planes they have and we
have</b>.”<br />
<br />
Discount carriers have secured about a quarter of the region's air
travel market in the past decade. The region will account for 33% of
global passengers in 2016, according to the International Air Transport
Association, and HSBC Holdings Plc has said four out of five airports in
Asia are operating at or above their designated capacity.<br />
<br />
AirAsia has grown into Asia's biggest discount airline since its
takeover by Tony Fernandes and partners in 2001. The carrier has set up
ventures in the Philippines, Japan, Thailand, India and Indonesia.<br />
<b><br />
In 2011, AirAsia ordered 200 Airbus A320neo aircraft valued at US$18bil (RM56.2bil)</b> in the biggest order for the planemaker.<br />
<br />
Lion Air, which serves more than 36 destinations, is establishing a
low-cost carrier in Malaysia to challenge AirAsia, Airbus's biggest A320
customer. Low-cost carriers are increasing their fleet as air travel is
expected to grow more than 6.4% annually through 2031.<br />
<br />
<u><b>Lion Air already has 700 planes on order and expects to have ordered
1,000 planes within “two to three years,</b></u>” president Rusdi Kirana said on
March 18. The Indonesian carrier ordered 230 Boeing Co 737 planes last
year.<br />
<br />
AirAsia planned to pick an engine for the 100 A320 planes it ordered from Airbus by April 18, Fernandes said. - Bloomberg</li>
</ul>
Comments: Just for the record of what's being said.Unknownnoreply@blogger.com0