How about PECD?

The Business Times Article published the following article today:

• Umno set to surface in PECD
  Umno will buy 25 per cent of PECD, which has a RM1.4 billion order book, a move that could help the company settle its disputes with government-related bodies

The article stated the following:

• Umno set to surface in PECD
  By Shahriman Johari
  ashahriman@nstp.com.my
  
  February 14 2007
  
  THE United Malays National Organisation (Umno) is set to emerge as a substantial shareholder in construction firm PECD Bhd, a source said.
  
  Umno will buy 25 per cent of PECD, a loss-making firm with a RM1.4 billion order book, a move that could help the company settle its disputes with government-related bodies.
  
  "Umno will buy the shares from existing shareholders, and an announcement could be made as early as today," said the source.
  
  The existing major shareholders of PECD include Tan Sri Mohd Razali Abdul Rahman, Nik Sufian Mohd Zain and Datuk Othman Hashim with a collective 32.18 per cent, its 2005 annual report showed.
  
  Peremba PJ Holdings Sdn Bhd also holds another 26.11 per cent.
  
  PECD shares closed 3 per cent down to 32.5 sen yesterday. A quarter of the company would cost some RM24.4 million based on the closing price.
  
  PECD swung to a third-quarter net loss of RM34.4 million as at September 30 2006 versus a net profit of RM6.3 million in the same period a year earlier.
  
  The loss was due mainly to slow progress of works from ongoing projects, reversal of profits recognised from certain completed projects and non-recognition of profits from its Sudan marine terminal project.
  Umno is likely to lend support to PECD's effort to resolve differences with state oil and gas firm Petroliam Nasional Bhd (Petronas) and state-owned property developer Putrajaya Holdings (PJH).
  
  PECD is claiming some US$200 million (RM700 million) in cost overruns for a project to build a marine terminal in Sudan. The project, to build oil storage tanks and fuel tanks among others, was awarded by a group of oil companies led by Petronas.
  
  PECD is also claiming RM178 million from PJH after the latter issued a termination notice for PECD to stop work on a government quarters project in Putrajaya.

PECD was performing extremely poorly. This is is the link to their last reported quarterly earnings:

Quarterly rpt on consolidated results for the financial period ended 30/9/2006

Year to date total net losses totalled 37.9 million. Bad shape.

And it was a no-brainer why the stock fared rather poorly.

Now watch the miracle of that one source and that one news report did to the stock.

Amazing!!!

PECD closed the day up by 36 sen or 110.77%!!!!

So much Dow Jones newswire carried this news brief:

1. 0807 GMT [Dow Jones] Loss-making PECD (5093.KU) +133.9% at 76 sen in heavy volume of 68.2 million shares, surging in heavy volume of 68.9 million shares following BT report ruling political party UMNO set to emerge as substantial shareholder in construction play via purchase of 25% stake. Dealer cautions retail investors from chasing stock any higher; notes Unusual Market Activity query issued by exchange requesting explanation for surge in share price and volume. "There's every reason to be believe that this stock's share price is at unreasonable levels and is likely to retreat sharply as fundamentals do not support this kind of valuation," broker says. Resistance at 81 sen (November 04 peak); support at 68 sen (October 05 peak). (VGB)

And in the evening PECD issued this statement: Article Entitled: "UMNO Set To Surface In PECD".

• We refer to the letter of query from Bursa Malaysia Securities Berhad ("Bursa Malaysia") dated 14 February 2007 (Ref No. IJ-070214-39714) in connection with the above titled article appearing in the New Straits Times, Business Times Section, page 39 on Wednesday, 14 February 2007 which among others contained the following statement:-
  
  "UMNO will buy 25 percent of PECD".
  
  After due and diligent inquiry with all directors, major shareholders and all such other persons reasonably familiar with the matters and based on our record available to us at the close of business on 14 February 2007, we confirm that the Company has no information on "UMNO will buy 25 percent of PECD".
  
  This announcement is dated 14 February 2007.

How?