More stories on Magnum Again?

My Dearest Moo Moo Cow,

This is simply getting disgusting.

I am well aware that you had blogged on Magnum before. Magnum Mulls Capital Repayment? and Update On Magnum

In short, the article posted on Business Times back on Saturday 14th 2007, Magnum mulls capital repayment exercise had been DENIED by Magnum before.

• Having made due and diligent enquiry with the directors of Magnum Corporation Berhad ("Magnum" or "Company"), Magnum wishes to inform Bursa Securities that the Board of Directors of Magnum has not considered any plan or proposal to return capital to Magnum's shareholders. Nevertheless, the Board of Directors of Magnum is constantly committed to increasing returns to shareholders and, in the event the Magnum Board decides on any relevant proposal, Magnum will make the necessary announcement in accordance with Bursa Securities' Listing Requirements.
  
  As for the second underlined sentence in the said article which makes reference to a "proposal to distribute in specie scripts of its parent Multi-Purpose Holdings Bhd (MPHB)", Magnum wishes to place on record that Magnum has already announced on 8 February 2007 that Magnum had on that day disposed of all its holdings of securities in MPHB, comprising 94,379,261 MPHB shares 94,902,966 MPHB warrants, via off-market transactions.

And again as shown in your Chart Update on Magnum went from 3.46 to close on Monday morning session at 3.76!!!!!

And the following chart showed how Magnum DIVED when Magnum denied the story.

Today, May 12th, the same writer writes the same thing on Business Times yet again!

Yup, he strikes again!

Magnum may dish out special 'ang pow'

See my dearest Moo Moo Cow, I wonder why the corporate always has to answer what's written in the press when the press bases their story on sources! I wonder do they QUESTION the press where these SOURCES came from?

Here's the article posted today.

• Magnum may dish out special 'ang pow'
  By Francis Fernandez
  bt@nstp.com.my
  
  May 12 2007
  
  THE directors of Magnum Corp Bhd, a gaming firm, are scheduled to meet on Tuesday to discuss a plan to reward shareholders, bankers familiar with the matter said yesterday.
  
  Business Times was told that the country's second biggest number-betting operator by market value, will consider a proposal to return between 70 sen a share and 80 sen a share to shareholders via a special dividend.
  
  About a month ago, Magnum denied a Business Times article on the plan, but did not discount considering such a proposal in the future.
  
  Speculation of a possible payout has intensified of late, fuelled by the massive open market buying of Magnum shares by its parent Multi-Purpose Holdings Bhd (MPHB).
  
  MPHB, in which tycoon Tan Sri Quek Leng Chan bought a 19.4 per cent stake in February, had bought slightly more than 50 million Magnum shares in a span of one month, filings to the stock exchange show.
  
  Bursa filings show that Multi-Purpose has 730.96 million Magnum shares or about 51.15 per cent as at April 4. This has risen to 54.64 per cent on May 8.
  
  The special dividend is a plan that aims to improve the attractiveness of Magnum as an investment stock.
  
  In February, Malayan Banking Bhd's (Maybank) research unit said in a report that the country's oldest four-digit gaming company was working on a plan to distribute up to 98 sen per Magnum share to minority shareholders.
  
  For the year ended December 31 2006, Magnum posted a net profit of RM252.90 million.
  
  The company is also proposing to pay a dividend of 14 sen a share or RM83.5 million for 2006.
  This is the first time since 2001, when it doubled dividend per share to 10 sen, that the company has increased the payout ratio to stakeholders.

How?

Would you trust this same story again?

And if this story is DENIED, don't you think that these 'bankers familiar with the matter said' should answer to the investing public?

Personally I believe it's simply DISGUSTING based on what happened before and especially the stock moves substantially higher based on a story which proved to be nothing but baseless speculation! But hey, that's just my opinion, yes?

3.24 pm 12 May 2007

I was just imformed that Star Business carried the same speculation. Magnum may unveil big special dividend

• Magnum Corp Bhd is finally set to proceed with its long-expected capital management plan as it may soon announce a bumper payment to shareholders.
  
  A source said the company, subject to board approval at a meeting on Tuesday, could announce a special dividend of between 60 and 70 sen a share.
  
  The board may give the go-ahead for the numbers forecast operator (NFO) to distribute its vast cash pile of more than RM700mil.
  
  Last year, Magnum raised its dividend to 14 sen a share from 10 sen. The return of cash will benefit shareholders and none more greatly than Multi-Purpose Holdings Bhd (MPHB), which owns 51% of Magnum.
  
  The cash from Magnum may help MPHB pare down debt but the source said MPHB also had a good story to tell.
  
  MPHB, the source said, was set to announce a record profit for its first quarter ended March 31, thanks to Magnum's strong NFO business and a robust stockbroking business owing to the bull run on Bursa Malaysia.
  
  MPHB announced a pre-tax profit of RM86.4mil and a net profit of RM60.5mil, or 6.3 sen a share, for its fourth quarter.

So said the source!