Tuesday, March 30, 2010

Bursa Malaysia: Bumi Armada Relisting?

What? What? You just got to be kidding!

Are you serious that Bumi Armada is relisting?


Do say it isn't so!

How tasteless and how ludicrous could things ever get on Bursa Malaysia?

Put it into a perspective of a relationship. Let's call it Durian and Grapes (Not to offend any). Durian and Grapes are happy married. One fine day, out of the blues, Grapes cites the lack of value in this relationship, and Grapes walks out. Taking everything away except for their child, Mustard, age 9. Durian of course was heart broken. A good 7 years past, Durian recovers and is back to cheerio ways. Suddenly Durian wants to walk back in and Grapes gladly takes Durian back, as if nothing has happened. Everything is hunky dory again. But what about Mustard? How would Mustard be feeling now? Lost parent at age of 9, lost the past time of childhood and now Grapes just wants to waltz right back in, as if nothing has happened?

Well, that's the best I could think of.

Mustard is us, the investing public. Durian is the stock exchange. And Grapes is that one company who list, delist and relist its companies into the exchange.

So how do you reckon we, the investing public, would feel about all this?

Does the stock exchange feel it's a swinging door, where companies can just list and delist and relist as per its wimps and fancy? As they say 'Suka-suka list. Suka-suka privatise. Suka-suka re-list.' Like children playing with sand in the back yard?

That's how I feel when I read about Ananda Krishnan's Bumi Armada to be listed?

Felt like throwing up.

First it was Bumi Armada's privatisation back in 2003 and mind you, it was done in so bad taste. The Pirates which seized the Armada ( See also Pirates attempt to seize whole Armada: pitfalls of investing in Malaysia )

Then it was Powertek.

And then it was Maxis.

Well with the Maxis re-listing, Bursa Malaysia made it clear that companies can list and delist and relist as per its wimps and fancy.

Then you have Astro.

Now Bumi Armada wants to relist?


From an investing perspective, is there any logical reasoning to be an investor in this group of companies? Is there any sane reasoning?

With the option of delisting, there is the unknown time frame and price capped on the investment. Correct? What does this mean? What is the risk? Well, if you do not understand the risk issue, it means that at any time a company could be taken private and at any price too. So what if the price is below our investment cost? Look at Astro. It used to trade way above rm 5.00. Look at the privatisation price. Long term investing with such companies? Isn't this such a losing game?

If so, what's the logical thing to do?

So what can we the investing public do?

We can air our displeasure but most important there's one thing we all can do. Which is to be the smarter investor.

So if we think the game 'played' is so damn ludicrous, where companies get to list, delist and relist (some would even ask if they are taking us as fools!), we have the right to ignore this group of companies!

Just don't buy the shares at all.

Yessir me!

Just don't touch any of these shares.

Forget about so-called value (What is value when the majority shareholder has the nasty habit of listing, delisting and relisting the shares) and if the shares go up, so what?

Will we suffer?

Will we suffer so badly at one missed opportunity?

Is it even a crime to miss this one so-called opportunity?

Think about it.

And yes, Bursa, seriously, this doesn't look at all. Don't you think you are degrading the quality of the stock exchange when you allow such events to occur? Yeah, there's absolutely nothing to stop a company from going private because it's a free market. However, surely you can do something about it's relisting. Remember, the company walked away and now it just wants to waltz back in, as if nothing has ever happened? Isn't this such a mockery!

Yeah.. for some, more listing in Bursa is good. It means more business for Bursa and more business, it means more profit and at the end of the day. more pay money.


Yet another sad, sad day.


Joehari Matt said...

Emm, glad I am not the only one. When write the blogpost titled
Ananda Krishnan will re-list Astro by end of 2012?I even haven't aware of Bumi Armanda relisting.

Opps, he did it again.

Unknown said...

Agree with the article!