Does Anyone Really Know What's Happening In Mega First?

I kept on saying Mega First purchase and disposal of shares are excessive. I have realised I have not really justified what I was saying.

Take last fiscal year. Here's Mega First q4 earnings last fiscal year. Quarterly rpt on consolidated results for the financial period ended 31/12/2009

Mega First said it made 65.626 million.

Here's Mega First annual report. Annual Report 2009. On page 59. It states that Mega First made 21.299 million.

Well, as the randomly wise one would say, do the math. Mega First net earnings were 65.626 million. Out of that 21.299 came from their unknown 'quoted investments'.

Secondly, Mega First sales revenue for its latest quarter was 120.153 million. On yesterday posting, Mega First Continues To Trade Excessively In Quoted Securities, I pointed out that Mega First purchased and disposed ONLY a mere 85.663 million worth of quoted securities!

Again, do the math. Sales revenue 120.153 million. It traded 85.663 million worth of quoted securities!

Is that a lot? Is that excessive?

It is too me.

While reading the report, I realised that I had forgotten that Rock Chemical Industries (Malaysia) is a subsidiary of Mega First ( Mega First owns 60.4% of Rock Chemical)

My fingers started wondering and clicking around (ok, I lied, the fingers got really itchy! :P ) because it wanted to know if Rock Chemical is yet another super duper trader like Mega First.

Well, I am not surprised and neither did Rock Chemical disappoint me.

At first impression, this doesn't seem a lot. Rather innocent too. Purchase 7.214 million, dispose some 6.936 million. That's ONLY 14.15 million worth of quoted securities.

What's the big deal?

Well the big deal is that Rock Chemical sales revenue is only 16.679 million!

Go figure the maths.

Is this excessive again?

Now my fingers are really itchy. What about Pearl River Tyre?

Let's look at Pearl River Tyre. Here's the link to their annual report.
http://www.hkexnews.hk/listedco/listconews/sehk/20100428/LTN20100428889.pdf

( Interesting KL Kepong owns shares in this company. :P )

Page 23. Same same! Look at the size of the investment of listed securities.



How?

So many quoted/listed purchased/disposed/held by this group of company.

Does anyone know what securities these are?