What Do You Seriously Think Of Mega First's Insane Trading Of Quoted Securities?

Blogged in November 2009: What Is Mega First Doing?

My issue with this company was highlighted in the cash flow screen shot. You can view it here again.

During that 3 quarters, Mega First spend some 258.422 million purchasing 'quoted shares'. And it sold some 145.974 million worth of shares.

Do the math.

That's an insane 404.396 million worth of quoted shares being bought and sold by Mega First.

Well Bursa is sort of aware of this issue, for Mega First is now made to post such announcements on Bursa website: Dealings in Quoted Securities. Now that announcement was made on 17th March 2010.

It states:

• As at 16 March 2010, the investments in quoted securities held by MFCB Group are set out below :-
  
  i) Total Cost : RM146.2 million
  ii) Book Value : RM154.1 million
  iii) Market Value : RM154.1 million

Now on 8th March 2010, Mega First posted this: Dealings in Quoted Securities

• As at 5 March 2010, the investments in quoted securities held by MFCB Group are set out below :-
  
  i) Total Cost : RM131.89 million
  ii) Book Value : RM136.88 million
  iii) Market Value : RM136.88 million

Now it doesn't take a rocket scientist to do the math.

From 5th March to 16th March, Mega First's total quoted securities had increased from 131.89 million to 146.2 million.

Now that's an increase of 14.31 million!!!

Now from 5th March to 16th March 2010, there's only 10 trading days.

Do the math.

Don't you think Mega First is over trading insanely?????

Yeah, some would point out that they did make some profits. So what? Who cares about the profit. Such a practice is insanely unhealthy!

Just what on earth is the board of directors in Mega First doing?

What kind of company has Mega First turned into?

A trading company?????

And to compound the matter worst, there is no transparency at all. What are these quoted securities that Mega First is trading so insanely actively?

Does anyone even know?

Yeah, now Mega First is making money from these trading. What if things go sour? Remember as it is, these trading of quoted securities is already more than 5% of Mega First net assets. I hope Bursa forces Mega First to list out exactly what these quoted securities Mega First is trading so actively in.

Ironic, yesterday the following editorial was posted on Star Business: Transparency vital for world-class capital market

I wonder where is the transparency in Mega First trading of quoted securities. What if things go sour in Mega First's trading? Would the minority shareholders even know what hit them?

How?