Why I Also Like KNM A Whole Lot

Let me see.

Do I like KNM?

Do you like KNM?

1. March 17th 2009, Management buyout of KNM hinges on funds. KNM then was 39 sen.

• “We are very undervalued. The opportunity for privatisation is a good opportunity but it’s the source of funding. There is no offer on the table,” said managing director Lee Swee Eng.

2. Wednesday, 10 June 2009, the Edge Financial Daily publishes the following. KNM’s MD sells 63.65m shares

• According to a Bursa Malaysia filing on Monday, Lee sold a total of 63.65 million shares representing a 1.6% stake in KNM between June 1 and 4 at prices ranging from 97.5 sen to RM1.02 apiece.

Regarding KNM's MD Disposal Of Shares For A Cool RM64 Million. Bottom line? MD makes a cool 64 million.

3. Feb 2010. Proposed Acquisition of the Entire Business and Undertakings of the Company (the "Proposal")

• KNM Group Berhad (“KNM”) has on even date received from BlueFire Capital Group Ltd (“Bidco”), an entity controlled by Ir. Lee Swee Eng, the Group Managing Director and major shareholder of KNM, a proposal to acquire the entire business and undertakings of KNM (“the Proposal”). The proposed price is equivalent to RM0.90 per issued ordinary share of KNM.

Hmm... what can anyone conclude?

March 2009, MD said KNM undervalued at 39 sen. Wants to take it private if got funds.

June 2009, MD disposes a chunk of shares between 0.975 and 1.02. MD pockets a cool 64 million.

4 Feb 2010. KNM now 75 sen. MD wants to do a MBO at 90 sen. (LOL! If 90 sen was a good price, how come he was disposing his shares like plague in June 2009?)

15 April 2010. KNM's MBO Fails. Stock plunges!

20th April 2010. KNM is now 62 sen.

Ah.. that's the way and I like it. Yessirme this is why I like KNM.

Oh... and the MD despite the failed MBO is still the MD.

Nice!

I like Scholes a whole lot too.