It was a simple posting, highlighting the rather optimistic earnings growth projection made by OSK.
What was also interesting was that K-Star appeared in the local news saying it wanted to raise more funds. I found it amusing and I wrote...
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According to that OSK report, K-Star raised some 32.9 million for its IPO and K-Star was listed on the 4th June (postponed from 31 May 2010).
It's now 24 Aug 2010 and on today's Star Biz, there was an article on K-Star: K-Star looks to raise funds
- It is looking at options such as rights issue, share placement and even a dual listing in Taiwan
Errr.... is the Malaysian investing public an atm machine?
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Yesterday, K-Star made an announcement. Instead of the rights issue. share placement or dual listing talk mentioned earlier, K-Star said it wants to do a 1 into 3 stock split!
oO
It's reasoning... enhance liquidity and marketability....
- The Proposed Share Split is expected to enhance the liquidity and the marketability of the K-Star Shares on the Main Market of Bursa Securities and will indirectly encourage a wider spread of public shareholders, ranging from different and diverse type of investors. The Proposed Share Split will also enable the existing shareholders of K-Star to hold a larger number of ordinary shares in K-Star while maintaining their equity interest.
This is how K-Star had performed since listing...
Yeah... the 'chart' shows that it's 'stock' performance had been rather lacking!
Can a stock split 'improve' and 'enhance' the stock?
LOL! LOL! LOL!
They cannot be serious can they?
Perhaps K-Star should ask some of Mr.Sotong's deep fried associates if they could comment a culinary chef.
Or perhaps K-Star should look at their own earnings performance for the clue why their shares lacks marketability!
As mentioned in the earlier blog posting: A Look At K-Star Sports
- Now K-Star reported its earnings on the 20th August 2010.
It was K-Star 2nd quarter earnings and K-Star only managed to make 5.94 million, giving it a half year earnings of only 16.467 million. ( see K-Star posts lower 2Q net profit at RM5.94m )
Yes, prior to the listing, K-Star made the following earnings announcement on 31 May 2010. Quarterly rpt on consolidated results for the financial period ended 31/3/2010
It said it earned some 10.542 million.
Then in Aug 2010, after being listed, K-Star's earnings came in at 5.94 million! ( See Quarterly rpt on consolidated results for the financial period ended 30/6/2010 )
Yup!
You said it WALOEHHHHH!!!
And best of all OSK's said in its IPO notes for K-Star listing was that K-Star is projected to earn some 52 million! Yup, OSK based its fair value for K-Star at rm 2.63 based ON that rather optimistic earnings projection!
Apparently, the market currently disagrees with such a valuation!
No wonder... K-Star 'feels' its shares lack marketability!
LOL!
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