Positive News For LCL?

Here's an update to the posting How Now For LCL?

Now the news of Dubai $10 billion bailout saw some interesting movement from the stock yesterday afternoon. It provided a nice spring board for the stock.

This morning there was this news clip.

• Interior fit-out specialist LCL Corp (7177.KU) may extend its rebound to test 10-day moving average of 30 sen as concerns over the company's loan default may ease further following news Abu Dhabi provided $10 billion in financial aid to Dubai. Separately, LCL says in filing with stock exchange that block of 16 million shares (or 11.2% stake) owned by LCL founder and chairman Low Chin Meng was sold on Dec. 11 by CIMB, the bank in which Low pledged his shares to; Low ceases to be substantial shareholder of LCL after sale. "The Dubai news should continue to have positive impact on LCL on expectation of loan recovery," says dealer with local brokerage; news of LCL chairman's block sale already has market speculating about identity of buyer, which may emerge in coming weeks. Stock closed +4.5% at 23 sen yesterday.

Now that's rather interesting!

CIMB sold the chairman's shares that were pledged to the bank!

Yeah, Abu Dhabi news would create positive sentiment for the stock. LOL! Yeah, the stock could certainly move much higher. Me? I do not know. Stocks are unpredictable. Sometimes they move up, sometimes they move down. Other times, they do the crab dance!

Fundamentally (for all its worth) I would imagine that there are plenty of sceptics around.

Why?

LCL is LCL is LCL.

Who is LCL? Just a small listed company from Malaysia with some upaid bills. How much would LCL see of these bailout money?

And some question the time frame. Would LCL be repaid fast enough for it to cover its debts due? And how much would LCL be paid? Remember LCL had already defaulted some 72 million. Perhaps this bailout from Abu Dhabi comes a bit too late for LCL!