LOL!!
Saw this announcement just now.
The Board of Directors wish to announce that it has discovered certain financial irregularities which maybe fraudulant. These discoveries were made by Special Committe set-up by the Board in March 2006 and headed by Dato' Krishna Kumar, the Company's Independant Director.
Was this all unexpected?
I remember this one hor... this bugger took over Kelanamas Industries Bhd listing under a restructuring exercise back in 2004 and then it started playing funky music by announcing it was diversifying into the cement business... AHEM... and then that was not all... back in June 2005...
Thursday June 16, 2005
Selling eases at MP Tech
PLASTICS group MP Technology Resources Bhd (MP Tech) found relief yesterday as persistent selling of its shares, particularly pronounced in the last three weeks, eased.
Over the last three months, its share price had almost halved from around 60 sen a share to 34 sen yesterday.
Its high trading volume and price weakness in recent weeks seemed to show there was forced-selling on a significant shareholder, a dealer said.
The stock stabilised with a gain of 1.5 sen to 34 sen yesterday, along with a general rally of stocks in the stock market. That seemed to show the forced-selling was completed, he added.
MP Tech's share price was battered due to forced-selling as there was nothing wrong with the company's fundamentals, the dealer said.
Ahh... the classical nothing wrong with company fundamental despite the apparent forced selling...
That report was made on June 2005.
How ironic cause MP Tech started reporting losses in its quarterly earnings reported in Oct 2005 and has since posted 4 consecutive quarterly losses (totalling some 33.7 million!!)!!!!
So now the discovery of certain financial irregularities which maybe fraudulant????
Showtime dude!!!
ps... MPTech last traded today at 8 sen!!!
ahhh... here is the NOT-SO-SMALL picture of MP Tech.
I'm new in share market. What will SC do usually to this type of incidence? Delist, suspend, PN17 or fine the company? How to recognise this type of counter in advance?
ReplyDeleteHi,
ReplyDeleteThere is no exact details yet so I cannot speculate what would happen.
rgds
moola,you have a good blogsite, good information. I read your blogs quite often, (though I dont regularly post anything).
ReplyDeleteand you are right, here is a typical cook da books senario!
See how Pirce Action moved before actual news? TA vs FA! :)
ReplyDeleteZen,
ReplyDeleteI guess you do not know me well enough. For me, it doesn't matter what approach one uses but how rational is the decision makings.
Take MP Tech. Say if one had believed in the story behind the stock. Well MP Tech was a plastic bag makers.
Back in Dec 2004, it said it was going into the cement business under a JV.
Well if that was acceptable, what about the story posted in the Edge weekly saying that it was buying a 20million for a stake in its JV partner.
Does it make sense?
Doesn't commonsense says that this is a rather funky corporate exercise?
And when companies starts playing the funky music, the 'investor' better start heading for the exit door.
So would Dec 2004 be a good exit?
cheers!
Moola,
ReplyDeletevery well put esp the "funky music" part. Yes, have to look out for management/owner who likes to play "funky music".
Zen,
i believe FA has an "artful" side to it like TA and many results/decisions also depend on personal interpretation of news/numbers. Some would consider some news as dealbreaking (thereby generating a signal to buy or sell) while others would consider the news as inconsequential. But like M said, crucial factor is how rational is the decision making.
u see...that's what they call restructuring....pass the sh!t to another pail...put some perfume..rename it then kautim!..look at DCIB,foutain,kbunai,tebrau etc..
ReplyDeleteSorry if I give you all a wrong impression. I think FA is important tool for investment.
ReplyDeleteI always believe TA & FA is like husband and wife. You need both of them in order to have baby. :)
Zen,
ReplyDeleteDon't worry lah..
ps.. a lot of them folks that hang around sahamas are actually traders.
err... i guess some thinks I am a trader too after several visits to sahamas!
rgds
hi, morning moola
ReplyDeletewhat say you about DCIB ? will appreciate an opinion.DCIB/MPtech, abang adik ?
thanks.
hi, moola
ReplyDeleteWhat's your say on DCIB ? DCIB/MPtech, abang adik ?
Appreciate your oponion.
Rgds.
Hi,
ReplyDeleteI am very sorry but I do not follow DCIB at all. And if I find anything interesting, I will try to make an effort to blog on it.
ok?
rgds