Executive Vice Chairman Dumps 100 million Shares Of Metronic

Read the following news article on Business Times:

• Director sells 100m Metronic shares
  
  By Francis Fernandez Published: 2011/01/14
  
  Metronic's executive vice chairman Datuk Gani Abd Yusof had sold 15.75 per cent of the company at an average selling price of 6.63 sen apiece.
  
  A company director sold 100 million shares in the open market on Wednesday without prior notification to Bursa Malaysia, prompting the shares to be suspended midway in the first session of trading yesterday.
  
  Metronic Global Bhd's (0043)shares were suspended from 11.17am until 2.30pm to allow the company to clarify the situation.
  
  On Wednesday, dealers were surprised on the unusual amount of Metronic shares traded.
  
  A total of 173 million shares were traded in the open market on Wednesday, a steep volume for the company, whose average six-month daily volume was just around 2.77 million shares a day.
  
  Metronic informed the stock exchange yesterday that its executive vice chairman Datuk Gani Abd Yusof had sold 100 million shares, or 15.75 per cent of the company, at an average selling price of 6.63 sen apiece.
  
  "Pursuant to paragraph 14.09 of the listing requirements of Bursa Securities for dealing in securities, the company has received notification dated January 13 from Abd Gani of his dealing in Metronic securities outside the closed period," the company said in a statement to Bursa Malaysia yesterday.
  
  Under paragraph 14.02b of the listing requirements, closed period means a period of 30 days before the company makes an announcement on its finances such as issuing annual or quartertly financial reports.
  
  Metronic has suffered losses for the past two financial years. For the year ended December 31 2009, it posted a net loss of RM2.09 million, while in the year before, its net loss stood at RM7.26 million.
  
  For the nine months ended September 30 2010, Metronic's net loss stood at RM4.77 million.
  
  Paragraph 14.09, meanwhile, states that if a director trades in the shares during the close period, the director must then, within three market days after the dealing has occured, give notice of the dealing in writing to the company secretary.
  
  Despite the sale, Abd Gani still owns 61.66 million shares, or close to 9.8 per cent of Metronic.
  
  Abd Gani, when contacted by Business Times for comments on the sale, said he was busy in a meeting.
  
  He also did not return text messages seeking his comments on the share sale.
  
  Abd Gani started building his business base with Peremba Bhd, a company with a legendary reputation for being the training ground for some of Malaysia's top corporate highfliers in the 1980s and 1990s, including the likes of Tan Sri Halim Saad and Tan Sri Tajuddin Ramli.
  
  Abd Gani re-emerged in the limelight last year when he was appointed as a director in Kenmark Industrial Co Bhd after its Taiwanese controlling stakeholder James Hwang Ding Kuo abruptly left the country.

Here is how Metronic is doing since listing.

And as mentioned in the article, Metronic's financial history is rather poor!

• Metronic has suffered losses for the past two financial years. For the year ended December 31 2009, it posted a net loss of RM2.09 million, while in the year before, its net loss stood at RM7.26 million. For the nine months ended September 30 2010, Metronic's net loss stood at RM4.77 million.

And the amazing thing in the balance sheet was the SIZE of the trade receivables.

It's amazing because last fiscal year, total sales revenue was around 59 million only. Current ytd. 3 quarters, sales revenue is only around 49 mil.

And so I cannot comprehend why Metronic is carrying so much receivables? Who's owing them money??? Who's not paying them???? Hmmm...

Can it even be collected?

Ahem... if it can't be collected... then..... won't the receivables have to be written off as bad debts!

At 6 sen, right or wrong, the market is only valuing Metronic Global to be worth some 38 million only.

!!!!!!!!!!

And how much is the size of the current receivables again? Just 95 million!

And then the company is losing money.

And now the Executive Chairman dumped 100 million worth of shares in the open market without giving the proper notifications!

Errr.....