Quote: The following commentary was made by theSun in the essay entitled Credible information vs speculation.
- .... but most quoting unnamed sources.
Some media organisations, even those which are traditionally conservative, are so caught up in getting the juiciest, most sensational and horrific details of the case that they throw caution to the wind and forget their responsibility to report truthfully, accurately and factually.
Here's a FRESH example.
The following article, Goodway rises on rumours of possible merger with Indian player was published on the SAME day theSun essay, entitled Credible information vs speculation, was written. LOL! What irony. :P
A look at that article:
- Goodway rises on rumours of possible merger with Indian player
Written by Melody Song
Friday, 17 September 2010 16:14
KUALA LUMPUR: Rubber compounding and tyre retreading outfit Goodway Integrated Industries Bhd has seen growing interest over the last two weeks on the back of rumours that it may be in talks with an Indian company for a potential merger.
On Tuesday, a block of 10 million shares was transacted in an off-market trade for a total of RM2.18 million or 91 sen per share. The block represented about 11% of Goodway’s total paid-up share capital and was traded two sen higher than its closing share price of 89 sen on Wednesday.
The company’s shares, which saw a spike in trading volume from the end of August, have also been on an upward trend. Goodway’s 52-week high was on Sept 7 and Sept 15, 2010 at 89 sen, while its 52-week low was on Oct 22, 2009 at 48 sen.
A source told The Edge Financial Daily that the most likely candidate for the partnership was Bombay Stock Exchange-listed Indag Rubber Ltd. The New Delhi-based company has been profitable over the last four years and has been paying out dividends to its shareholders for the last three years.
Goodway and Indag had recently signed a memorandum of understanding (MoU) to “consider joint opportunities which are expected to strengthen both parties’ market position in the rubber compounding and retreading industry”, although details of the partnership are yet to be announced.
“This MoU does not create legally binding obligations on the parties and shall not give rise to any rights and liabilities to a contract. Therefore, the aforesaid MoU shall have no material effect on the earnings and share capital of the company and its group,” said Goodway in its Aug 25, 2010 announcement.
“We are not sure if one company will take over the other, or vice versa, but we believe it is to leverage on each others’ strength in rubber compound research and development, as well as explore the possibility of expanding market share,” the source said.
“Right now, talks are still in its preliminary stages, but the share price has been moving because investors have somehow got wind of the speculation and have been buying up shares,” the source added.
Meanwhile, Goodway told The Edge Financial Daily that it assumed the recent movement in its share price and trading volume was due to its recently-announced joint venture with Greece-based tyre distributor World Rubber Trading.
According to news reports, Goodway expects to increase the export of its off-the-road (OTR) tyres via its 75%-owned subsidiary Bigwheel OTR Sdn Bhd. Under the agreement, World Rubber would supply OTR tyre casings to Bigwheel for retreading at its plant in Nilai, Negeri Sembilan.
At present, Goodway has four retreading plants — two in Malaysia and one each in China and Australia. The company also has a rubber compound plant in Nilai and a press production plant in China.
When asked about the possible merger between Goodway and Indag, a spokesperson for the company said the MoU was still at the information collection stage and the decision of whether to move into a joint-venture partnership or merger was still unknown.
“Assuming we do combine our businesses, it would be to enhance market growth in the retreading segment and would involve some exchange of technical knowledge,” said Goodway’s spokesperson, adding that at present it did not have a market presence in India.
Goodway’s financial performance for the second quarter ended June 30 showed a 22.3% improvement in net profit to RM2.14 million, or 2.4 sen per share, from RM1.75 million a year earlier, while revenue rose 31.7% to RM60.25 million from RM45.76 million.
For the cumulative six-month period, Goodway’s net profit was up 254.8% to RM3.02 million, or 3.5 sen per share, from RM850,000 previously, while revenue rose 40.6% to RM118.34 million from RM84.15 million. At the end of the quarter, its net assets per share stood at 86 sen.
This article appeared in The Edge Financial Daily, September 17, 2010.
Firstly, the journalist declared it was rumours.
A source fed the Edge Financial Daily with all the 'good stuff'.
That article was published late on Friday afternoon after 4 pm.
Stock gained half a sen on Friday,
Today, the stock rallied and shot up 7.5 sen or 8.38% to close at 97 sen.
And yes, the power of the mighty source drove Goodway higher.
However, just published on the same website, Goodway Integrated says no development in MoU with India’s Indag
- KUALA LUMPUR: GOODWAY INTEGRATED INDUSTRIES [] Bhd said there has been no material development following the signing of the MoU with India’s with Indag Rubber Ltd.
The MoU signed on Aug 23 was to consider joint opportunities which are expected to strengthen both parties’ market position in the rubber compounding and retreading industry.
The company said on Monday, Sept 20 “that as at to date, there is no material development in regard to the aforesaid MoU”.
My say?
I think it would be a splendid idea if theSun asks their Edge Financial Daily who supplied such credible information to their financial news!
Credible information vs speculation????
* whistle *
the info is correct,goodway will do anything to see this merger going to happen.
ReplyDeletelikely indap will be major share holder.The top management also willing to sell the company