MP Tech

Blogged on this stock several times.

7th Sept 2006: MP Tech

• The Board of Directors wish to announce that it has discovered certain financial irregularities which maybe fraudulant. These discoveries were made by Special Committe set-up by the Board in March 2006 and headed by Dato' Krishna Kumar, the Company's Independant Director.

And i made the following comments:

• How ironic cause MP Tech started reporting losses in its quarterly earnings reported in Oct 2005 and has since posted 4 consecutive quarterly losses (totalling some 33.7 million!!)!!!!So now the discovery of certain financial irregularities which maybe fraudulant????

Updated the posting on 22nd Jan 2007: Update on MP Tech

• I remember this one hor... this bugger took over Kelanamas Industries Bhd listing under a restructuring exercise back in 2004 and then it started playing funky music by announcing it was diversifying into the cement business... AHEM... and then that was not all... back in June 2005...

Four days later, MP Tech announced its quarterly earnings and I made the following posting: MP Technology announced its Quarterly Earnings. Quarterly losses totalled 133.274 million!

It was truly amazing because MP Tech announced then too that the financial position of the company was insolvent.

In today's Star Biz, the following article caught my attention: PN 17 firms to be delisted, removed

• PN 17 firms to be delisted, removed
  
  KUALA LUMPUR: The securities of three Practice Note 17 companies – FA Peninsular Bhd, MP Technology Resources Bhd (MP Tech) Syarikat Kayu Wangi Bhd (SKW) – will be delisted and removed from the official list of Bursa Malaysia on Dec 13.
  
  Bursa said in a statement FA Peninsular would be delisted for failure to make the requisite announcement of its regularisation plans by Nov 30.
  
  It said MP Tech would be delisted for failure to submit its regularisation plan to the Securities Commission (SC) and other relevant authorities for approval by Sept 25.
  
  For SKW, it would be delisted as the SC had, vide its letters dated Aug 9 and Nov 6, rejected its regularisation plan and its appeal against the rejection respectively.
  
  “For MP Tech and SKW, another reason for the delisting is that both companies do not have adequate level of financial conditions to warrant continued listings,” it said.
  
  Bursa said upon the delisting of the companies, they would continue to exist but as an unlisted entities. – Bernama

So what more can I say about MP Tech?

Got listed via RTO of Kelanamas in 2004. Insolvent by Jan 2007. To be delisted on Dec 2007!

Now value destruction or what!!

And I would like to know how MP Tech managed to get listed via the RTO Kelanamas!

MP Technology announced its Quarterly Earnings

MP Technology just released its earnings tonight: Quarterly rpt on consolidated results for the financial period ended 30/11/2006

Quarterly losses totalling 133.274 million!

WOW!!!

Value destruction or what!!

• The group revenue up to the current quarter was RM21.6 million cumulatively as compared to RM110.4 million reported in the preceding year corresponding quarter. The group also posted a loss before tax (“LBT”) of RM144.5 million as compared to RM33.4 million reported in the preceding year correspondence quarter. The drop in performance was mainly attributable to the significant other operating expenses registered during the current financial year which consist of doubtful trade and other collectibles written off, property, plant and equipment and stock written off, provision for doubtful debts, impairment loss on investment in unquoted shares and associates, impairment loss of goodwill, provision for diminution of investment etc. The other operating expenses alone have contributed total loss of RM128.7 million in the current quarter under review.
  
  To the best knowledge of the Directors, no other known item, transaction or event of a material and unusual nature has arisen in the interval between the end of this reported period and the date of this announcement, which have affected substantially the results of the operations of the Group.

And this is what the company said about its prospects:

• The financial year 2006 being the tough year for the Group, seeing significant drop of both annual turnover and margin coupled with loss before tax of RM144.5 million. Besides, negative publicity with regards to the possible financial irregularities further dampened the Group’s effort to bounce during the fourth quarter under review. In view of the major setback in the financial year 2006, new board was formed comprising parties with different expertise to regularize the Group in both operation and financial aspects and new Group Managing Director was appointed as well to turnaround the Group going forward.
  
  In view of the optimistic economic prospect ahead, the management believes the Group would revive its business volume and profitability going forward

Big Mess! Especially when you consider the issues mentioned here: Update on MP Tech

Oh, their auditors resigned Special announcement MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" or the "Company") RESIGNATION OF AUDITORS

And then Default in payment under Practice Note 1/2001

• The Company is now announcing that the financial position of the Company is insolvent.

Got listed via RTO of Kelanamas in 2004. Insolvent by 2007!

Like i said..

Value destruction or what!!

Update on MP Tech

Here's an update to this blog posting: MP Tech

Flashback:

=============================

LOL!!

Saw this announcement just now.

• The Board of Directors wish to announce that it has discovered certain financial irregularities which maybe fraudulant. These discoveries were made by Special Committe set-up by the Board in March 2006 and headed by Dato' Krishna Kumar, the Company's Independant Director.

Was this all unexpected?

I remember this one hor... this bugger took over Kelanamas Industries Bhd listing under a restructuring exercise back in 2004 and then it started playing funky music by announcing it was diversifying into the cement business... AHEM... and then that was not all... back in June 2005...

Thursday June 16, 2005

Selling eases at MP Tech
PLASTICS group MP Technology Resources Bhd (MP Tech) found relief yesterday as persistent selling of its shares, particularly pronounced in the last three weeks, eased.
Over the last three months, its share price had almost halved from around 60 sen a share to 34 sen yesterday.
Its high trading volume and price weakness in recent weeks seemed to show there was forced-selling on a significant shareholder, a dealer said.
The stock stabilised with a gain of 1.5 sen to 34 sen yesterday, along with a general rally of stocks in the stock market. That seemed to show the forced-selling was completed, he added.
MP Tech's share price was battered due to forced-selling as there was nothing wrong with the company's fundamentals, the dealer said.

Ahh... the classical nothing wrong with company fundamental despite the apparent forced selling...

That report was made on June 2005.

How ironic cause MP Tech started reporting losses in its quarterly earnings reported in Oct 2005 and has since posted 4 consecutive quarterly losses (totalling some 33.7 million!!)!!!!

So now the discovery of certain financial irregularities which maybe fraudulant????

Showtime dude!!!

ps... MPTech last traded today at 8 sen!!!

ahhh... here is the NOT-SO-SMALL picture of MP Tech.

=====================================================

Jan 22nd 2007

The above posting was made on 7th Sept 2006. It's now Jan 22nd 2007.

Saw this announcement posted on Bursa Malaysia website: SPECIAL ANNOUNCEMENT

Mind the big cap

• THE BOARD OF DIRECTORS WISH TO ANNOUNCE THAT IT HAS DISCOVERED CERTAIN FINANCIAL IRREGULARITIES WHICH MAY HAVE CAUSED THE FINANCIAL POSITION OF THE COMPANY TO BE MISREPRESENTED. THESE DISCOVERIES WERE MADE BY MEMBERS OF AUDIT COMMITTEES AFTER A LENGTHY ANALYSIS OF THE ACCOUNTS.
  THE COMPANY IS IN THE PROCESS OF UNDERTAKING A THOROUGH INTERNAL INVESTIGATION TO BE CARRIED OUT BY THE FINANCE DEPARTMENT AND REPORTING TO THE AUDIT COMMITTEES AND BOARD OF DIRECTORS.
  
  THE COMPANY WILL MAKE THE NECESSARY ANNOUNCEMENTS IN DUE COURSE.
  

Here is a news update:

• MPTech launches internal probe into financial irregularities By Alfean Hardy, 22 Jan 2007 6:32 PMMP Technology Resources Bhd (MPTech), which is being probed by the Securities Commission (SC) over allegations of financial irregularities, will launch its own internal investigation in the matter.
  MORE>>

Taking sooooooooo long?

Meanwhile... saw these recent announcements posted by MP Tech.

• ====19/01/2007
  MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" OR THE "COMPANY") DEFAULT IN PAYMENT UNDER PRACTICE NOTE 1/2001 ("PN1/2001") OF BURSA SECURITIES LISTING REQUIREMENTS
  
  ====17/01/2007
  MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" OR THE "COMPANY") DEFAULT IN PAYMENT UNDER PRACTICE NOTE 1/2001 ("PN1/2001") OF BURSA SECURITIES LISTING REQUIREMENTS
  
  ====16/01/2007
  MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" or the "Company") DEFAULT OF INTEREST OF RM14,000,000 REDEEMABLE CONVERTIBLE SECURED LOAN STOCKS ('RCSLS')
  
  ====16/01/2007
  MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" or the "Company") DEFAULT OF INTEREST OF COLLATERAL LOAN OBLIGATION (CLOs)
  
  ====16/01/2007
  MP TECHNOLOGY RESOURCES BERHAD ("MPTEC" or the "Company") LITIGATION STATUS

Err... yes, that serious!

MP Tech

LOL!!

Saw this announcement just now.

• The Board of Directors wish to announce that it has discovered certain financial irregularities which maybe fraudulant. These discoveries were made by Special Committe set-up by the Board in March 2006 and headed by Dato' Krishna Kumar, the Company's Independant Director.

Was this all unexpected?

I remember this one hor... this bugger took over Kelanamas Industries Bhd listing under a restructuring exercise back in 2004 and then it started playing funky music by announcing it was diversifying into the cement business... AHEM... and then that was not all... back in June 2005...

Thursday June 16, 2005

Selling eases at MP Tech
PLASTICS group MP Technology Resources Bhd (MP Tech) found relief yesterday as persistent selling of its shares, particularly pronounced in the last three weeks, eased.
Over the last three months, its share price had almost halved from around 60 sen a share to 34 sen yesterday.
Its high trading volume and price weakness in recent weeks seemed to show there was forced-selling on a significant shareholder, a dealer said.
The stock stabilised with a gain of 1.5 sen to 34 sen yesterday, along with a general rally of stocks in the stock market. That seemed to show the forced-selling was completed, he added.
MP Tech's share price was battered due to forced-selling as there was nothing wrong with the company's fundamentals, the dealer said.

Ahh... the classical nothing wrong with company fundamental despite the apparent forced selling...

That report was made on June 2005.

How ironic cause MP Tech started reporting losses in its quarterly earnings reported in Oct 2005 and has since posted 4 consecutive quarterly losses (totalling some 33.7 million!!)!!!!

So now the discovery of certain financial irregularities which maybe fraudulant????

Showtime dude!!!

ps... MPTech last traded today at 8 sen!!!

ahhh... here is the NOT-SO-SMALL picture of MP Tech.