I Do.. The Losers!

So what's left for Intan Utlities?

After scrapping their proposal to buy Berjaya Sports Toto shares, the company announced it plans to consolidate its business by selling all its non-core businesses and concentrate on its chain of 7-Eleven business.

Sounds fair.

But what about the market players who 'invested' in Intan based on their early announcement to buy shares in Berjaya Sports Toto? Without this share purchase, it would appear that the current share price is not justifiable given the historical poor earnings from Intan.

And here is a news clip from Business Times citing TA Securities sell recommendation on Intan.

TA Securities has changed its recommendation on Intan Utilities Bhd to a "sell" from a "buy", after the company cancelled plans to buy a substantial stake in lottery firm Berjaya Sports Toto Bhd (BToto).

The research house also cut the fair value of Intan to RM1.91 from RM4.18 based on a 12 times price earnings ratio (PER) for the financial year ending 2006. ( TA Sec reverses Intan stock to 'sell' )

Oh yes, the SELL recommendation is justifiable in my opinion.

The Star Bizweek was even more incredible!

‘Still a happy ending’ for BGroup

Happy Ending?

Gosh!

Here was what's written on Intan:

The loser is clearly Intan. Its share price soared after it was made known that it would buy a substantial stake in BToto.

As one analyst puts it, “The bulk of value in the stock was derived from the BToto deal.”

How ironic!

They announced a deal, suddenly value was created.
They rescinded the deal, suddenly value is destroyed.

Such is the power of corporate exercises.

Oh yes, in the share market, there's always winners and losers, and the losers in this "I Do.. I Don't" flip-flop controversy is Intan.

But is the loser only Intan?

Not for me.

The clearest and the biggest losers are the integrity of Bursa Malaysaia, our stock market, and the minority investors!

Such flip-floping cleary raises the issue of the integrity of the listed corporate proposals.

For how can an investor, the minority shareholder, trust any announced corporate exercise(s) when the announcer could flip-flops their corporate decisions as per their own whimps and fancy?

Just think a moment about the minority investors.

Does the minority shareholders not matter?

Does the minority shareholders represent nothing but OPM (other peoples money)?

Does the minority shareholders deserves more respect?

Now imagine this... without minority shareholders, can the market exist?

How?