And According To Sources, DRB Might Be Privatised

The stock is having a fantastic run. Perhaps fantastic is an understatement. :=)

And guess what?

The local press decides to jump on the bandwagon to spice up the stock.

Err... sometimes don't you wonder about our press?

Yeah.. what's their objective?

To spice up the stock market? To add fuel to the stock? Yeah, 'kar yau' babe!

Let's send the stock to the up and beyond. :=)

Yeah, babe. I buy the local business newspaper because I want to find out which stock will be stir fried ala Paul style babe!

You be the judge. On Business Times:

• Syed Mokhtar mulls DRB-HICOM buyout
  
  By Francis Fernandez Published: 2010/12/09
  
  Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM Bhd (1619) private, people familiar with the plan said yesterday.
  
  It is further believed that the tycoon is being advised by Maybank Investment Bank Bhd on the plan which could cost him close to RM2 billion.
  
  Sources said the offer will be comparable to DRB-HICOM's net tangible asset (NTA) value. As at end of September this year, DRB's NTA stood at RM2.50.
  
  There has been speculation that Syed Mokhtar could offer anywhere between RM2.20 and RM2.70 for the DRB-HICOM shares he does not own.
  
  As at July 21 this year, Syed Mokhtar holds a controlling 55.92 per cent of DRB-HICOM, via privately held Etika Strategi Sdn Bhd.
  
  "The plan is being considered, but a firm decision has yet to be made," said the source. DRB-HICOM's group managing director Datuk Mohd Khamil Jamil declined to comment.
  
  DRB-HICOM's stock closed 11 per cent higher at RM1.70 yesterday, giving the group a market value of RM3.3 billion. It was also its highest close in 52 weeks.
  
  The stock has gained 68 per cent so far this year, much better than the broader market's 19 per cent gain in the same period.
  
  Mohd Khamil has been instrumental in changing DRB-HICOM's fortunes over the past couple of years. His cost-cutting measures have kept the conglomerate keep a keen focus on its bottom line. The group nearly doubled its revenue over the past five years to RM6.31 billion in 2010 from RM3.52 billion in 2006.
  
  After suffering a pre-tax loss of RM196.74 million in 2006, Mohd Khamil, a close confidant of Syed Mokhtar, has steadied the ship, helping the group post four years of healthy profits.
  
  In the financial year ended March 31 2010, DRB-HICOM posted a pre-tax profit of RM657.89 million.
  
  For the six months ended September 30 in the current financial year, its pre-tax profit stood at RM409.64 million, more than two times its pre-tax profit of RM163.65 million in the same period a year ago.
  
  DRB-HICOM assembles foreign marques like Mercedes Benz, Honda and Suzuki but it also has steady income from its Islamic bank, insurance and power plant maintenance business.
  It is also building up its property business in the Klang Valley and Johor.
  
  As for its motor vehicle business, DRB-HICOM aims to sign a definitive agreement with Volkswagen AG (VW) this month.
  
  VW had in August signed a memorandum of understanding with DRB-HICOM to produce VW cars from 2012 at the group's plant in Pekan, Pahang.
  
  Eventually, the deal may include the export of VW cars to Asean countries, among other things.
  
  Read more: Syed Mokhtar mulls DRB-HICOM buyout http://www.btimes.com.my/Current_News/BTIMES/articles/darbo8/Article/#ixzz17ZVnhODh