And Baswell Is To Be Delisted on 19 Aug

Here's a short clip on Business Times:

• Baswell to be delisted on Aug 19
  Published: 2011/08/10
  
  BURSA Malaysia said trading in shares of Baswell Resources Bhd will be suspended on August 17 and its stock will be delisted on August 19.
  
  The company, which failed to submit its accounts on time, still has time to make an appeal on or before August 16, Bursa said.

Baswell is now trading at 2.5 sen down 3 sen!

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

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

Here's the posting reposted here once more.

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

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

And I think the following comment was spot on!

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

Today I want to show a consequence of such reporting.

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

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

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

Take this stock called Baswell Resources.

Here is the daily stock chart.



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

Which of course was driven by 'news'... can you say power to the mighty sword from our so-called financial journalist?

• Takeover on the cards at Baswell?
  Written by Jose BarrockTuesday, 19 January 2010 12:03
  
  KUALA LUMPUR: Baswell Resources Bhd’s shares hit their 52-week high of 67.5 sen yesterday, before tapering off to end the day at 58 sen, which marks a 4.5 sen gain from last Friday’s close.
  
  The stock’s closing price is also its highest level since March 2006.
  
  Also, trading volume on Baswell was unusually heavy yesterday, with some 15.68 million shares changing hands, representing almost a third of Baswell’s 48 million-share base. This trend of heavy trading volume started last Friday, when some 4.86 million shares were transacted in the tightly held counter.
  Although not certain as yet, a takeover could be on the cards at Baswell.
  
  According to shareholding changes filings via Bursa Malaysia Securities, an individual Ng Min Lin emerged as a substantial shareholder in Baswell, after acquiring a direct interest of 5% or 2.4 million shares. According to filings, he had made the acquisition on Dec 24 last year.
  
  Ng upped his stake to 23% or 11.04 million shares after buying two tranches of 4.32 million shares each for a total of 8.64 million shares on Dec 31 last year and Jan 5 this year. Bursa announcements yesterday, however, showed that Ng had since pared down his stake to 21.9 million shares.
  
  Pursuant to the filings, Ng could have acquired his stake from Dr Oh Han Cheng or Dr Oh’s spouse Khoo Yew Kheng, who have been trimming their stake in the furniture company.
  
  Oh is the founder of Baswell, and its executive chairman, while Khoo is Baswell’s managing director. Khoo’s brother Khoo Yew Nean is an executive director of the furniture maker.
  
  According to Baswell’s latest annual report for FY2008, the trio collectively control some 52% of Baswell. The only other substantial shareholder in the company is Wan Ismail Wan Nik who has 10.52 million shares or 21.91% of Baswell.
  
  Two board appointments were also made last Friday. Tan Beng Kheng, who is the managing director of Penang-based Seng Seng Construction Sdn Bhd, and Ng’s father- in-law, Datuk Wong Kam Hoong, were appointed to the board in non-executive positions. Wong was formerly deputy minister of culture, arts and heritage.
  
  A check with the Companies Commission of Malaysia reveals that Seng Seng Construction is controlled by privately held Tan Kiew Seng Holdings Sdn Bhd, and Tan is a director of Seng Seng Construction.
  
  Seng Seng Construction suffered a net loss of RM1.9 million on RM38 million in revenue for its financial year ended June 2008.
  
  
  This article appeared in The Edge Financial Daily, January 19, 2010.

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

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

Which was followed by this article...

• Baswell seals RM336m subcontract for Abu Dhabi project
  Written by Financial Daily
  Thursday, 21 January 2010 10:53
  
  KUALA LUMPUR: Baswell Resources Bhd, which has been the subject of intense investor attention over the past few days, has bagged a US$100 million (RM336 million) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi.
  
  Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development.
  
  The Edge Financial Daily reported yesterday that market talk over the last few days had it that a Middle Eastern job was on the cards for the local furniture maker. Investor interest in the stock had also heightened that substantial shareholding changes could prompt a takeover situation.
  
  In an announcement to Bursa Malaysia yesterday, Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development.
  
  “The MoU is consistent with Baswell’s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture manufacturing status,” said the company.
  
  Baswell shares were unchanged yesterday, closing at 76 sen per share with 9.92 million shares traded.
  
  The company’s share price had soared on heavy trading volume since last Friday. Nearly 24 million shares were traded, and the stock has seen a surge of 114% in its share price since the beginning of the year.
  
  Changes in substantial shareholdings fuelled speculation that a takeover was on the cards, a rumour that was promptly quashed by Baswell’s board of directors who said the announcements on substantial shareholding changes had been misconstrued.
  
  Baswell has seen the emergence of new substantial shareholder, Ng Min Lin, who owns 21.86% of the company. The largest shareholder in Baswell is Wan Ismail Wan Nik, who holds a 21.96% stake.
  
  
  This article appeared in The Edge Financial Daily, January 21, 2010.

LOL! The Edge Financial should had at least owned up the takeover speculation and rumour was given a massive helping hand by its own 'journalist', yes?

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

This is Baswell's 5 minute charts.

Hmmm... two sudden spikes .... followed by increase in volume after the spike. Would this be the classical "pump up to dump"?
On Saturday, there was this news on Baswell.

• Saturday March 13, 2010
  
  Baswell plans capital reduction
  
  PETALING JAYA: Furniture maker Baswell Resources Bhd has proposed a 55% capital reduction under a plan to eliminate the group’s accumulated losses and facilitate future fund raising exercises, the company told Bursa Malaysia.
  The capital reduction means its issued and paid-up capital would be reduced from RM48mil, comprising 48 million shares of RM1 each, to RM21.6mil comprising 48 million shares of 45 sen each.

Hmmm... makes you wonder, doesn't it?

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

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

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

Two comments from the posting.

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

Many months have passed.

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

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

The reporter cleverly wrote..

• Although not certain as yet, a takeover could be on the cards at Baswell

I mean, seriously, if it's not certain, as a reporter, as a financial reporter, doesn't he have a duty to report facts and only facts?

Yeah Jose Barrock!

Here was Baswell response to that so-called 'financial reporting' (What's the purpose of a 'financial news' when the news is based on nothing but speculation? Is the purpose of the financial news to drive a stock price higher?)

• Reference is made to the letter from Bursa Malaysia Berhad dated 19 January 2010 and the Article entitled :"Takeover on the cards at Baswell?" which appears in The Edge, Financial Daily, Cover Page and Page 4 on Tuesday, 19 January 2010 (“Article”), the Board of Directors of BASWELL wishes to inform that, after making due enquiry with all Directors and major shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect, the Board of Directors wishes to clarify that it has not, to date, received any take-over offer on the shares of the Company. However the recent announcements on the changes of substantial shareholdings in the Company may have been mis-construed as a situation involving take-over.
  
  At the same time, the Board of Directors of the Company wishes to advise that it was not aware of the Article prior to its publication and that the Company has neither verbally nor in writing released any information to the author of the said Article.

This is where I don't understand. Why isn't the author of the said Article being questioned?

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

Anyway... it's now August 2010. Baswell is still Baswell and Baswell made news today again but for the wrong reason.

• Baswell ceases ops, becomes PN17 firm
  Published: 2010/08/10
  
  FURNITURE maker Baswell Resources Bhd (7156) yesterday said it had ceased all its furniture manufacturing operations and become a Practice Note 17 company.
  
  Baswell also said a memorandum of understanding signed with Hong Kong's Metroplex Resources Ltd in January had been terminated.
  
  The MoU was for Metroplex and Baswell to collaborate with AL-AMRY Group to design, build and instal a project for AL REEM Island mixed development.
  
  Under the pact, Metroplex was to sub-contract the entire manufacturing and installation of furniture and fittings worth US$100 million (RM314 million) to Baswell.
  In a filing to Bursa Malaysia, Baswell said it is trying to sell some of its properties, plants and equipment, and to formulate a comprehensive restructuring.

Ceased all furniture manufacturing operations????

huhu!

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

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




How?

Me? I pray more integrity in our financial news!

Jose Barrock And Baswell Resources

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

And I think the following comment was spot on!

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

Today I want to show a consequence of such reporting.

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

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

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

Take this stock called Baswell Resources.

Here is the daily stock chart.

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

Which of course was driven by 'news'... can you say power to the mighty sword from our so-called financial journalist?

• Takeover on the cards at Baswell?
  Written by Jose Barrock
  Tuesday, 19 January 2010 12:03
  
  KUALA LUMPUR: Baswell Resources Bhd’s shares hit their 52-week high of 67.5 sen yesterday, before tapering off to end the day at 58 sen, which marks a 4.5 sen gain from last Friday’s close.
  
  The stock’s closing price is also its highest level since March 2006.
  
  Also, trading volume on Baswell was unusually heavy yesterday, with some 15.68 million shares changing hands, representing almost a third of Baswell’s 48 million-share base. This trend of heavy trading volume started last Friday, when some 4.86 million shares were transacted in the tightly held counter.
  
  Although not certain as yet, a takeover could be on the cards at Baswell.
  
  According to shareholding changes filings via Bursa Malaysia Securities, an individual Ng Min Lin emerged as a substantial shareholder in Baswell, after acquiring a direct interest of 5% or 2.4 million shares. According to filings, he had made the acquisition on Dec 24 last year.
  
  Ng upped his stake to 23% or 11.04 million shares after buying two tranches of 4.32 million shares each for a total of 8.64 million shares on Dec 31 last year and Jan 5 this year. Bursa announcements yesterday, however, showed that Ng had since pared down his stake to 21.9 million shares.
  
  Pursuant to the filings, Ng could have acquired his stake from Dr Oh Han Cheng or Dr Oh’s spouse Khoo Yew Kheng, who have been trimming their stake in the furniture company.
  
  Oh is the founder of Baswell, and its executive chairman, while Khoo is Baswell’s managing director. Khoo’s brother Khoo Yew Nean is an executive director of the furniture maker.
  
  According to Baswell’s latest annual report for FY2008, the trio collectively control some 52% of Baswell. The only other substantial shareholder in the company is Wan Ismail Wan Nik who has 10.52 million shares or 21.91% of Baswell.
  
  Two board appointments were also made last Friday. Tan Beng Kheng, who is the managing director of Penang-based Seng Seng Construction Sdn Bhd, and Ng’s father- in-law, Datuk Wong Kam Hoong, were appointed to the board in non-executive positions. Wong was formerly deputy minister of culture, arts and heritage.
  
  A check with the Companies Commission of Malaysia reveals that Seng Seng Construction is controlled by privately held Tan Kiew Seng Holdings Sdn Bhd, and Tan is a director of Seng Seng Construction.
  
  Seng Seng Construction suffered a net loss of RM1.9 million on RM38 million in revenue for its financial year ended June 2008.
  
  
  This article appeared in The Edge Financial Daily, January 19, 2010.

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

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

Which was followed by this article...

• Baswell seals RM336m subcontract for Abu Dhabi project
  Written by Financial Daily
  Thursday, 21 January 2010 10:53
  
  KUALA LUMPUR: Baswell Resources Bhd, which has been the subject of intense investor attention over the past few days, has bagged a US$100 million (RM336 million) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi.
  
  Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development.
  
  The Edge Financial Daily reported yesterday that market talk over the last few days had it that a Middle Eastern job was on the cards for the local furniture maker. Investor interest in the stock had also heightened that substantial shareholding changes could prompt a takeover situation.
  
  In an announcement to Bursa Malaysia yesterday, Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development.
  
  “The MoU is consistent with Baswell’s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture manufacturing status,” said the company.
  
  Baswell shares were unchanged yesterday, closing at 76 sen per share with 9.92 million shares traded.
  
  The company’s share price had soared on heavy trading volume since last Friday. Nearly 24 million shares were traded, and the stock has seen a surge of 114% in its share price since the beginning of the year.
  
  Changes in substantial shareholdings fuelled speculation that a takeover was on the cards, a rumour that was promptly quashed by Baswell’s board of directors who said the announcements on substantial shareholding changes had been misconstrued.
  
  Baswell has seen the emergence of new substantial shareholder, Ng Min Lin, who owns 21.86% of the company. The largest shareholder in Baswell is Wan Ismail Wan Nik, who holds a 21.96% stake.
  
  
  This article appeared in The Edge Financial Daily, January 21, 2010.
  

LOL! The Edge Financial should had at least owned up the takeover speculation and rumour was given a massive helping hand by its own 'journalist', yes?

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

This is Baswell's 5 minute charts.

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

On Saturday, there was this news on Baswell.

• Saturday March 13, 2010
  
  Baswell plans capital reduction
  
  PETALING JAYA: Furniture maker Baswell Resources Bhd has proposed a 55% capital reduction under a plan to eliminate the group’s accumulated losses and facilitate future fund raising exercises, the company told Bursa Malaysia.
  
  The capital reduction means its issued and paid-up capital would be reduced from RM48mil, comprising 48 million shares of RM1 each, to RM21.6mil comprising 48 million shares of 45 sen each.

Hmmm... makes you wonder, doesn't it?

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

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

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

Two comments from the posting.

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

Many months have passed.

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

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

The reporter cleverly wrote..

• Although not certain as yet, a takeover could be on the cards at Baswell

I mean, seriously, if it's not certain, as a reporter, as a financial reporter, doesn't he have a duty to report facts and only facts?

Yeah Jose Barrock!

Here was Baswell response to that so-called 'financial reporting' (What's the purpose of a 'financial news' when the news is based on nothing but speculation? Is the purpose of the financial news to drive a stock price higher?)

• Reference is made to the letter from Bursa Malaysia Berhad dated 19 January 2010 and the Article entitled :"Takeover on the cards at Baswell?" which appears in The Edge, Financial Daily, Cover Page and Page 4 on Tuesday, 19 January 2010 (“Article”), the Board of Directors of BASWELL wishes to inform that, after making due enquiry with all Directors and major shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect, the Board of Directors wishes to clarify that it has not, to date, received any take-over offer on the shares of the Company. However the recent announcements on the changes of substantial shareholdings in the Company may have been mis-construed as a situation involving take-over.
  
  At the same time, the Board of Directors of the Company wishes to advise that it was not aware of the Article prior to its publication and that the Company has neither verbally nor in writing released any information to the author of the said Article.

This is where I don't understand. Why isn't the author of the said Article being questioned?

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

Anyway... it's now August 2010. Baswell is still Baswell and Baswell made news today again but for the wrong reason.

• Baswell ceases ops, becomes PN17 firm
  
  Published: 2010/08/10
  
  FURNITURE maker Baswell Resources Bhd (7156) yesterday said it had ceased all its furniture manufacturing operations and become a Practice Note 17 company.
  
  Baswell also said a memorandum of understanding signed with Hong Kong's Metroplex Resources Ltd in January had been terminated.
  
  The MoU was for Metroplex and Baswell to collaborate with AL-AMRY Group to design, build and instal a project for AL REEM Island mixed development.
  
  Under the pact, Metroplex was to sub-contract the entire manufacturing and installation of furniture and fittings worth US$100 million (RM314 million) to Baswell.
  In a filing to Bursa Malaysia, Baswell said it is trying to sell some of its properties, plants and equipment, and to formulate a comprehensive restructuring.
  

Ceased all furniture manufacturing operations????

huhu!

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

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

How?

Me? I pray more integrity in our financial news!

Baswell Resources

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

Take this stock called Baswell Resources.

Here is the daily stock chart.

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

Which of course was driven by 'news'... can you say power to the mighty sword from our so-called financial journalist?

• Takeover on the cards at Baswell?
  Written by Jose Barrock
  Tuesday, 19 January 2010 12:03
  
  KUALA LUMPUR: Baswell Resources Bhd’s shares hit their 52-week high of 67.5 sen yesterday, before tapering off to end the day at 58 sen, which marks a 4.5 sen gain from last Friday’s close.
  
  The stock’s closing price is also its highest level since March 2006.
  
  Also, trading volume on Baswell was unusually heavy yesterday, with some 15.68 million shares changing hands, representing almost a third of Baswell’s 48 million-share base. This trend of heavy trading volume started last Friday, when some 4.86 million shares were transacted in the tightly held counter.
  
  Although not certain as yet, a takeover could be on the cards at Baswell.
  
  According to shareholding changes filings via Bursa Malaysia Securities, an individual Ng Min Lin emerged as a substantial shareholder in Baswell, after acquiring a direct interest of 5% or 2.4 million shares. According to filings, he had made the acquisition on Dec 24 last year.
  
  Ng upped his stake to 23% or 11.04 million shares after buying two tranches of 4.32 million shares each for a total of 8.64 million shares on Dec 31 last year and Jan 5 this year. Bursa announcements yesterday, however, showed that Ng had since pared down his stake to 21.9 million shares.
  
  Pursuant to the filings, Ng could have acquired his stake from Dr Oh Han Cheng or Dr Oh’s spouse Khoo Yew Kheng, who have been trimming their stake in the furniture company.
  
  Oh is the founder of Baswell, and its executive chairman, while Khoo is Baswell’s managing director. Khoo’s brother Khoo Yew Nean is an executive director of the furniture maker.
  
  According to Baswell’s latest annual report for FY2008, the trio collectively control some 52% of Baswell. The only other substantial shareholder in the company is Wan Ismail Wan Nik who has 10.52 million shares or 21.91% of Baswell.
  
  Two board appointments were also made last Friday. Tan Beng Kheng, who is the managing director of Penang-based Seng Seng Construction Sdn Bhd, and Ng’s father- in-law, Datuk Wong Kam Hoong, were appointed to the board in non-executive positions. Wong was formerly deputy minister of culture, arts and heritage.
  
  A check with the Companies Commission of Malaysia reveals that Seng Seng Construction is controlled by privately held Tan Kiew Seng Holdings Sdn Bhd, and Tan is a director of Seng Seng Construction.
  
  Seng Seng Construction suffered a net loss of RM1.9 million on RM38 million in revenue for its financial year ended June 2008.
  
  
  This article appeared in The Edge Financial Daily, January 19, 2010.

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

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

Which was followed by this article...

• Baswell seals RM336m subcontract for Abu Dhabi project
  Written by Financial Daily
  Thursday, 21 January 2010 10:53
  
  KUALA LUMPUR: Baswell Resources Bhd, which has been the subject of intense investor attention over the past few days, has bagged a US$100 million (RM336 million) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi.
  
  Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development.
  
  The Edge Financial Daily reported yesterday that market talk over the last few days had it that a Middle Eastern job was on the cards for the local furniture maker. Investor interest in the stock had also heightened that substantial shareholding changes could prompt a takeover situation.
  
  In an announcement to Bursa Malaysia yesterday, Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development.
  
  “The MoU is consistent with Baswell’s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture manufacturing status,” said the company.
  
  Baswell shares were unchanged yesterday, closing at 76 sen per share with 9.92 million shares traded.
  
  The company’s share price had soared on heavy trading volume since last Friday. Nearly 24 million shares were traded, and the stock has seen a surge of 114% in its share price since the beginning of the year.
  
  Changes in substantial shareholdings fuelled speculation that a takeover was on the cards, a rumour that was promptly quashed by Baswell’s board of directors who said the announcements on substantial shareholding changes had been misconstrued.
  
  Baswell has seen the emergence of new substantial shareholder, Ng Min Lin, who owns 21.86% of the company. The largest shareholder in Baswell is Wan Ismail Wan Nik, who holds a 21.96% stake.
  
  
  This article appeared in The Edge Financial Daily, January 21, 2010.
  

LOL! The Edge Financial should had at least owned up the takeover speculation and rumour was given a massive helping hand by its own 'journalist', yes?

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

This is Baswell's 5 minute charts.

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

On Saturday, there was this news on Baswell.

• Saturday March 13, 2010
  
  Baswell plans capital reduction
  
  PETALING JAYA: Furniture maker Baswell Resources Bhd has proposed a 55% capital reduction under a plan to eliminate the group’s accumulated losses and facilitate future fund raising exercises, the company told Bursa Malaysia.
  
  The capital reduction means its issued and paid-up capital would be reduced from RM48mil, comprising 48 million shares of RM1 each, to RM21.6mil comprising 48 million shares of 45 sen each.

Hmmm... makes you wonder, doesn't it?

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

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

Systems and Old Mistakes

My Dearest Scouser,

Here's a repeat posting of an old posting I did long ago. I called it Systems and Mistakes.. when I blogged on it long ago.

Anyway, in my opinion, this is a nice posting to re-read again because I get to see one of my old mistakes.


~ ~ ~ ~ ~ ~

If a man didn't make mistakes he'd own the world in a month. But if he didn't profit by his mistakes he wouldn't own a blessed thing.
- LiverMore - Reminiscences of a Stock Operator

During the past few years, I or rather we have witnessed so many various stock market strategies applied in the market in an attempt to make money from the stock market.

Some punted and simply whacked Ze market, some chiak and chiak da bugger, some whacked simply based on hot-air, some used various trading techniques and skills, which included trading in a short term basis, scalping, tape reading, swinging and daytrading, while some others traded on a longer term basis based on Market Timing or cycles, and some simply invested in the market - yeah the buy and hold long, long buggers, and then we have the more technical savy techno canSLIMers, traders/investors who combine ta/fa in their strategy, some simply bought and prayed hard-hard!

So how are we doing?

Good, bad or so-so?

Or is there something wrong in our system?

Are we 'playing the game' correctly or are we in the need to go on a holy grail search for Ze best method?

Now, for the holy grail searchers, those switch hitters who moves from one system to another in search for the best method, the biggest problem and the biggest risk is simply time. Mistakes cost money and what if one takes too long to discover our mistakes?

Each system/strategy has got its own winning point and its weak point. And this the holy grail seekers greatest risk. Finding, testing and discovering each strategy takes time and lots of mistakes will occur along the way.

And of course, the ultimate question would be: could one ultimately find the best ever technique?

Is there ever a 100% fool proof strategy?

What if it takes you too long a time to find it?

And what if there isn't such a thing as a perfect strategy?

Ahhh... how? Profiting from our mistake(s). This is i think is the ultimate key. Be it if you are an investor or you are a trader. So the alternative is to take a good review of what we have done and what we have not done correctly the past year. Look at our own methods. Can we avoid repeating the same mistake or we doomed to make the same mistake again?

Or are we even using the technique correctly?

Or how about argument which argues that the system is usually correct, it is the user of the system which is wrong?!

Or even to the more extreme, do we and will we ever acknowledge the flaws in our own system?

And lastly, what if our current system is really a no-hoper?

Are we going to accept and acknowledge these fact(s) or are we just going to keep on repeating our mistakes over and over again?

Read thru Ze compilation!!!! a couple of times and i thought it would be really good if I had shared my own personal investing mistake.

Isn't this not one of the most important thingy? Are we are gonna profit from our past mistake(s)?

Let's go back in time.

Way back in 2003. Near towards the end of the year, I 'invested' into one furniture business stock. Baswel Resources.

It was a small little decent company, with decent profit margin and there was growth also.

Hence, I embarked on an investment into Baswell. 8,000 shares at around 1.50.

Now my mistake was that after my purchase, I failed to acknowledge the weak trend shown in its fiscal year 2004 Q1.

Yes, the sales were pretty much flat, however, the net profit margin declined quite substantially. From 14% to a mere 7%.

I discounted its poor performance as a temporary dip in form.

Now the weakness continued.

The next quarter, 2004 Q2, the clear GET OUT sign was there!

Its profitability slumped to a mere 3%.

Oh, another issue first, i had also failed miserably understanding the rubberwood furniture business.

Baswell did not have it own resources.

It had to purchase rubberwood and when the price of rubberwood increased, Baswell's margin was squeezed.

And another issue, Baswell, was not active in all the furniture trade fairs we see so often.

Ahh, this should have had been a clue for me. A big one. I should have realize that by being not active, perhaps its business maybe was not as attractive or as strong as other furniture players.

All said, after reasoning out Baswells 2004 Q2 earnings, I decided that I have made a poor rotten investment decision, and it was time to sing 'so long and farewell, it's time for me to go...'

But... butt... butttt....

I faced another issue... this was a dead counter!!!

Yalor.... D E A D ..... not laku at all....si-kiau-kiau!

So disposing that 8 lots or 8000 shares became a truly task for me.

I was faced with trading quotes such as: buy 1.10, sell 1.30...

The huge gap between the buyer(s) and seller(s) and the lack of buyers turned into a huge PROBLEM for me....

Now the thing was, I could have and I should have 'given' to the buyer as soon as i decided.... but noooooo sir me... i tried to be a smarty alec... and i dilly-dallied on my sale....

In the end.... i got out.... 6 lots at 1.20.... and the last 2 lots at 1.08.

Ouchhhhh!!!!!!

And yes.... this will be a big lesson for me!!!!!

And regarding the D E A D counter issue....

I think that this is was one big lesson I've learned.

Do not discount this factor when investing.

Now, do not get me wrong, for I agree very much that IF a stock is truly great, then it matters not how the stock is traded.

Yup, my focus has always been on the stock and not the market... for simply, the market is just where we make our transactions.

However, i am afraid to say, that there is one small thingy.... there is a potential failure in such system... ie... what IF we are wrong?

Ahhh.... what if we made a mistake in our stock selection?

Let's face the facts, we are just normal buggers, tiok boh?.

We are not Ze super-duper investors, rite?

Sooo sometimes (as hard as we want to avoid doing so) we can still make mistakes!

So if we make a mistake in our stock .......

then how?.....

Soooooo..... if the stock is a D E A D counter.... then our escape hatch... our cut-loss strategy faces a huge obstacle....!!!!!


ps.
Baswel is now trading at 0.51!
Baswel lost money for the last 3 quarters!
buy and hold will never work if u hold a company gone bad!

================

19th april 2007. Baswel now trades at 0.30!

If I had used the buy and hold forever nonsense, this would caused serious damage to my well being.

rgds

Systems and Mistakes..

If a man didn't make mistakes he'd own the world in a month. But if he didn't profit by his mistakes he wouldn't own a blessed thing.
- LiverMore - Reminiscences of a Stock Operator

During the past few years, I or rather we have witnessed so many various stock market strategies applied in the market in an attempt to make money from the stock market.

Some punted and simply whacked Ze market, some chiak and chiak da bugger, some whacked simply based on hot-air, some used various trading techniques and skills, which included trading in a short term basis, scalping, tape reading, swinging and daytrading, while some others traded on a longer term basis based on Market Timing or cycles, and some simply invested in the market - yeah the buy and hold long, long buggers, and then we have the more technical savy techno canSLIMers, traders/investors who combine ta/fa in their strategy, some simply bought and prayed hard-hard!

So how are we doing?

Good, bad or so-so?

Or is there something wrong in our system?

Are we 'playing the game' correctly or are we in the need to go on a holy grail search for Ze best method?

Now, for the holy grail searchers, those switch hitters who moves from one system to another in search for the best method, the biggest problem and the biggest risk is simply time. Mistakes cost money and what if one takes too long to discover our mistakes?

Each system/strategy has got its own winning point and its weak point. And this the holy grail seekers greatest risk. Finding, testing and discovering each strategy takes time and lots of mistakes will occur along the way.

And of course, the ultimate question would be: could one ultimately find the best ever technique?

Is there ever a 100% fool proof strategy?

What if it takes you too long a time to find it?

And what if there isn't such a thing as a perfect strategy?

Ahhh... how? Profiting from our mistake(s). This is i think is the ultimate key. Be it if you are an investor or you are a trader. So the alternative is to take a good review of what we have done and what we have not done correctly the past year. Look at our own methods. Can we avoid repeating the same mistake or we doomed to make the same mistake again?

Or are we even using the technique correctly?

Or how about arguement which argues that the system is usually correct, it is the user of the system which is wrong?!

Or even to the more extreme, do we and will we ever acknowledge the flaws in our own system?

And lastly, what if our current system is really a no-hoper?

Are we going to accept and acknowledge these fact(s) or are we just going to keep on repeating our mistakes over and over again?

Read thru Ze Compilation!!! a couple of times and i thought it would be really good if I had shared my own personal investing mistake.

Isn't this not one of the most important thingy? Are we are gonna profit from our past mistake(s)?

Let's go back in time.

Way back in 2003. Near towards the end of the year, I 'invested' into one furniture business stock. Baswel Resources.

It was a small little decent company, with decent profit margin and there was growth also.

Hence, I embarked on an investment into Baswell. 8,000 shares at around 1.50.

Now my mistake was that after my purchase, I failed to acknowledge the weak trend shown in its fiscal year 2004 Q1.

Yes, the sales were pretty much flat, however, the net profit total declined quite substantially. From 14% to a mere 7%.

I discounted its poor performace as a temprorary dip in form.

Now the weakness continued.

The next quarter, 2004 Q2, the clear GET OUT sign was there!

Its profitability slumped to a mere 3%.

Oh, another issue first, i had also failed miserably understanding the rubberwood furniture business.

Baswell did not have it own resources.

It had to purchase the rubberwood and when the price of rubberwood increased, Baswell's margin was squeezed.

And another issue, Baswell, was not active in all those furniture trade fair we see now and then.

Ahh, this should have had been a clue for me. A big one. I should have realise that by being not active, perhaps its business maybe was not as attractive or as strong as other.

All said, after reasoning out Baswells 2004 Q2 earnings, I decided that I have made a poor rotten investment decision, and it was time to sing 'so long and farewell, it's time for me to go...'

But... butt... butttt....

I faced another issue... this was a dead counter!!!

Yalor.... D E A D ..... not laku at all....si-kiau-kiau!

So disposing that 8 lots or 8000 shares became a truly task for me.

I was faced with trading quotes such as: buy 1.10, sell 1.30...

The huge gap between the buyer(s) and seller(s) and the lack of buyers turned into a huge PROBLEM for me....

Now the thing was, I could have and I should have 'given' to the buyer as soon as i decided.... but noooooo sir me... i tried to be a smarty alec... and i dilly-dallied on my sale....

In the end.... i got out.... 6 lots at 1.20.... and the last 2 lots at 1.08.

Ouchhhhh!!!!!!

And yes.... this will be a big lesson for me!!!!!

And regarding the D E A D counter issue....

I think that this is was one big lesson I've learned.

Do not discount this factor when investing.

Now, do not get me wrong, for I agree very much that IF a stock is truly great, then it matters not how the stock is traded.

Yup, my focus has always been on the stock and not the market... for simply, the market is just where we make our transactions.

However, i am afraid to say, that there is one small thingy.... there is a potential failure in such system... ie... what IF we are wrong?

Ahhh.... what if we made a mistake in our stock selection?

Let's face the facts, we are just normal buggers, tiok boh?.

We are not Ze super-duper investors, rite?

Sooo sometimes (as hard as we want to avoid doing so) we can still make mistakes!

So if we make a mistake in our stock .......

then how?.....

Soooooo..... if the stock is a D E A D counter.... then our escape hatch... our cut-loss strategy faces a huge obstacle....!!!!!


ps.
Baswel is now trading at 0.51!
Baswel lost money for the last 3 quarters!
buy and hold will never work if u hold a company gone bad!