Wednesday, June 22, 2011

And Just What Is Muhibbah's ED Thinking?

Saw this news clip:
  • Muhibbah director sells shares

    Published: 2011/06/22

    MUHIBBAH Engineering (M) Bhd executive director Lee Poh Kwee disposed of some half a million shares in the company for RM1.82 on June 16.

Interesting cos I could not find the link to this disposal on Bursa website..


Anyway, assuming the news is correct, the timing of this disposal could not have been much worst.

Consider the facts: Singapore Business Times published the article on 15th June 2011. CIMB puts Asia Petroleum Hub under receivership

The next day, 16 June: And Muhibbah Comes Crashing Down

And Muhibbah's ED chose to dispose half a million shares for rm1.82 on the same day?

How?

What's the company trying to tell the market eh?

----------------
Edit:


Found the Bursa announcement: DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS): DEALINGS OUTSIDE CLOSED PERIOD



    at

    5 comments:

    1. Ooi Beng Hooi12:09 PM

      Hi Moola,

      Mind to share where you saw the clip?

      Thanks

      ReplyDelete
    2. Moolah12:29 PM

      Ooi Beng Hooi: I've edited the main posting to include the snapshot of the news clip.

      ReplyDelete
    3. Big Sea3:29 PM

      SC should invite this guy to minum kopi, investigate for insider trading.

      ReplyDelete
    4. Joseph9:27 AM

      There could have been an error on the part of the company secretary.

      Best check with the company to determine accuracy of the disposal.

      fearandgreed2020

      ReplyDelete
    5. Moolah9:38 AM

      Joseph: Yes, certainly the company secretary or whoever filed that disposal announcement could have erred.

      However....

      think about it.

      The company is in the midst of a drastic selldown. The market implications is damning to say the least.

      The APH is one issue but the APH issue highlights Muhibbah collection issue.

      In an industry where margins are thin, collection of work done is utmost important.

      Besides APH, Muhibbah collectibles are MASSIVE.

      Why?

      Why is the company finding so hard to collect money?

      And so here we are and we have... the ED disposing his shares.

      Shouldn't the ED think before he sold his shares???? Shouldn't he think about the implications? Is he giving his company a vote of confidence?

      And yes.. the validity of the data itself.

      How?

      If one is the company secretary.. shouldn't one UNDERSTAND the importance of getting this disposal of shares correct?

      ReplyDelete