Wednesday, July 08, 2009

And The Stock That Could Fly Up, Up and Away!

I am bemused with all what's happening at Goh Ban Huat.

The stock simply soars higher and higher each day thanks to all the recent 'happenings'. :D

Here is one news clip on today's Edge financial daily.

  • GBH jumps 16 sen on higher offer hopes
    Written by Joseph Chin
    Wednesday, 08 July 2009 15:09

    KUALA LUMPUR: Share price of Goh Ban Huat surged 16 sen to RM1.67 in mid-afternoon trade on July 8 as investors hoped for a better offer from Tan Sri Robert Tan Hua Choon, who now owns 33.11% of GBH.

    At 2.56pm, it was up 16 sen to RM1.67 with 170,700 shares done. This is a 42 sen increase over Tan’s offer price of RM1.25. The FBM KLCI fell 4.56 points to 1,061.41.

    GBH’s board is seeking another offeror as it describes Tan's offer of RM1.25 per share as too low since GBH's net asset value per share is RM2.54.

    An independent advice circular is expected to be released on July 25, which will incorporate the valuation of the land.

    According to the company’s annual report for fiscal year ended Dec 31, 2008, GBH owns 56,874 sq metres of land with a total net book value of RM119.98 million.

    Of the 56,874 sq metres, the report shows that 52,910 sq metres are freehold land and the remaining land are storage yards. Two largest pieces of freehold land, partly occupied by factories, measure 42,224 sq metres valued at RM92.42 million and are in Segambut, Kuala Lumpur.

Yeah the stock that could fly!

And obviously Goh Ban Huat lack of earnings performance does not matter.

And I still remember the accounting blunder way back in 2005.

Flash back to a newsclip from Star Business. (sorry link is lost!)

  • Tuesday May 3, 2005

    A wave of revisions in listed firms’ financial results

    A number of companies on Bursa Malaysia have recently announced big variances between their unaudited financial results and the audited numbers, but analysts said that is no reason for worry at the moment.

    “Most of the companies that have announced such variances are small and none of the bigger, widely-followed companies have done so,'' said the head of research of a foreign stockbroking firm.

    Although there have not been major accounting scandals in Bursa Malaysia, regulators have taken a stern view on accounting blunders that prevent investors from making informed decisions.

    Bursa's listing requirements stipulate that the content of an announcement must be factual, clear, unambiguous, accurate, succinct, and contains sufficient information to enable investors to make informed investment decisions.

    Goh Ban Huat Bhd's (GBH) u-turn in its financial results was the latest high profile case on Bursa when it had, within a week of announcing an unaudited pre-tax profit of RM100.9mil on Feb 28, reversed it to show a loss of nearly RM20mil.

    GBH had wrongly included a surplus arising from the sale of group properties, totalling RM120.9mil, as other operating income.

    The company was fined RM100,000 by Bursa for that accounting blunder...

And yeah love how this stock is flying up, up and away.


Sorry lah I am not sure if you could lose money here or not. :D