Welli: Charged with Cooking Their Books

Published on Business Times: Charged with cooking books

• Charged with cooking books
  
  Published: 2008/04/16
  
  The Securities Commission says two former Welli Multi directors, the Ang brothers, falsified company accounts in the 2005 annual report and quarterly reports for 2006
  
  THE Securities Commission has charged two former directors of Welli Multi Corp Bhd with falsifying company accounts, about 10 months after it first took action against the palm kernel crusher.
  
  The regulator has sued Ang Sun Beng, 62, the former managing director of Welli and his younger brother Ang Soon An, 58, who was also a former executive director.
  
  "Upon conviction, the accused persons are liable to a fine not exceeding RM3 million or to imprisonment for a term not exceeding 10 years, or both," the SC said in a statement released yesterday.
  
  They were charged with falsifying accounts in its 2005 annual report where Welli posted a revenue of RM573 million and a net profit of RM5 million.
  
  They were also charged with manipulating the numbers for the first three quarters of fiscal 2006, which ends on December 31.
  
  In addition, the SC has fined Welli's former executive director and chief executive officer, Tan Chin Han, RM100,000 for authorising the submission of the 2006 third quarter accounts.
  
  The Ang brothers have claimed trial to the charges.
  
  Judge Rozana Ali Yusoff imposed bail of RM150,000 with one surety on each of them and ordered them to surrender their travel documents. She fixed May 9 for mention.
  
  In February, the SC told the Business Times that it may take legal action against those who cooked the books at Welli. It had said that investigation was at an advanced stage.
  
  Initial investigations revealed a number of bankers acceptance notes were issued by the company to "questionable" companies.
  
  In June 2007, Welli was told to withhold releasing quarterly accounts and the annual audited accounts for the period to March 31 2007.
  
  This was to verify the authenticity and recoverability of some RM113 million worth of trade receivables.
  
  The Penang-based palm kernel processor, listed on the second board, was instructed to rectify and re-issue its accounts.
  
  Welli then re-issued its accounts up to the period ended December 31 2006 in February this year, reporting a net loss of RM17.61 million.

Well, it's really great to read about all this happening.

Another thing, here's another example to pay attention to them trade receivables in the balance sheet.

Remember the old saying, a sale is never a sale until the money is collected!

CME Groups's 1 into 10 Stock Split

Dedicated to Unker TK again. :D

I was just reading this article, 15-04-2008: CME proposes 1-into-10 share split

• 15-04-2008: CME proposes 1-into-10 share split
  
  KUALA LUMPUR: CME Group Bhd has proposed a one-into-10 share split towards increasing the liquidity of the stock.
  
  As at Dec 31, 2007, CME’s paid-up capital stood at RM40.11 million comprising 40.11 million shares of RM1 each. CME said yesterday it would submit an application to Bursa Malaysia Securities for its approval of the proposal within one month.

Ok, the stock is said to have no liquidity.

And if I use my Bursa Station toy, I can see where the issue of no liquidity is coming from. Look at the daily volume chart for CME for the past 3 months.

And if you look at the recent 5 year data, it's no different!


There is simply no volume at all!

And the below is the 5 min tick chart for the past one month for CME.



This simply is a dead stock!

And I guess a 1:10 stock split kinda make sense.

But.... but.... but.... but..... but if you look at the last traded stock price, the stock last traded at 63 sen.

Sixty Three sen.

OMIGOD! A 1 into 10 split for a penny stock trading at 63 sen!!!!!!!!

Is this a world first that a penny stock is doing a 1:10 split?

Speach-less or speach less???

And yeah, Simon would ask after such nonsensical corporate proposals from its listed members, if our market even relevant anymore?

Sigh!

Manchester United 2 Arsenal 1

Manchester United was extremely lucky to beat Arsenal last night. Arsenal played good.

Anyway what can you expect when United played against a 12-man Arsenal team!

Oh no, I am not talking about a biased referee or the crowd. I was talking about Arsenal having an extra player, Wes Brown!

Did you not see his defence splitting pass in the fifth minute to Cesc in the penalty box? Thank goodness Cesc blasted over.

And what about his wonderful attempt at United's goal late on in the second half. United was lucky to have the post to block out Brown's incredible attempt on goal.

Thank goodness Manchester United got lucky and came out 2-1 winners.

Seriously, Manchester United needs a new rightback next season!

Read some comments from Myles Palmer

From Myles Palmer...

• When RVP put in one good cross, somebody shouted "Keeper's!" and Rio left it and Ade put his arm up to protect his face because he thought Edwin would come out and whack him- and the keeper stayed at home and the ball went in off Ade's arm and......nobody appealed for handball ! The keeper and the defenders didn’t see it.

Ah, the evidence from your sports CSI team!

See RiO's reaction?

Gosh, wasn't he like telling himself NOT to go anywhere near the ball? Or is that how some sissies play footie?

And what's Carrick doing? A new dance on tip toes?

And was Van der Sar doing some Kung Fu or boxing movement? (If you ask me, I do agree with Myles, Edwin was indeed trying to whack Ade! The evidence said so!)

And then there's Ade-Samson-Bayor! LOL! Tell me, is that a new swan-lake header or what?

:P

Some extra highlights from the match.

So they swapped...

( Waa... Roo's looking slim, eh? :P ) (Was Cesc trying to slap Rooney's chest? oO! )

Ok... it's time to leave the pitch....

Something then slipped!

Hey Cesc! You dropped something!

And obviously Cesc heard nothing!

And did you wonder what Van Persie was clapping for??

LOL!

More On HaiO

TK said:

• I was initially interested in Hai-O. However, I do not like the 50 Mil investment in property.
  
  Pu-er tea, Moo Moo, this tea, as far as I know, once being 'goreng' & some cost few thousands ringgit a kati hoo.... dun play play... There are people who buy this tea to keep (investors?), the value will goes up according to its age if it is properly kept.
  
  Re the herbs, Hai-O looks like improving in its marketing (outlet design, product packaging). I think its competitors will be 'Yu Yan Sang' I was shocked when I see the price of 'Tong Chong Chow' RM400-RM800 per pack.& I beiieve that chinese herbs business is a fat profit margin business.One of my classlmate drove Merz after joining their MLM while I was still in college. But thats before Hai-O listed... How?

Many thanks Unker TK for sharing what you know.

BullBear posted on FusionInvestor chat:

• HaiO is selling at a low PE (based on ttm-eps). It earns >25% on equity and its net profit margin >10% of its revenue. The arguments centred on its management and its business franchise. IF HaiO continues to perform, those who invested into it would have a return of x% (?5%, 10%, 30%, 50%, 100%), if it unperforms, one might lose y% (?5%, 10%, 30%, 50%, 100%), . Works out the odds (x/y), and see if you like the odds.
  
  Peter Lynch: "The very best way to make money in a market is in a small growth company that has been profitable for a couple of years and simply goes on growing." The key objective of the investor should be to avoid a major loss, the occasional huge winner will offset a number of small losses." "When the news seem terrible, that's when you make the big money in the market."

My dearest BullBear,

A low PE stock means only one thing and that is the stock is trading on a lower valuation compared to what it is currently earning.

Some simply consider that what is happening is the stock is being ignored in the market despite its impressive earnings.

Why?

The market could be wrong and that perhaps this is a stock that's an ignored gem. Yeah, the classical hidden gem and if this is the case, investors who invests in the stock could be rewarded for their stock selection.

However, on the other hand, sometimes the market could be right and that they do sense something is not right within the stock.

And because of this reasoning, I have always realised that a low PE stock does not make a stock a QUALITY stock.

It just means the stock is trading 'cheaply'.

It could be a bargain but it could also be a trap.

In this instance, HaiO is obviously trading cheaply compared to its current earnings.

Now, yes I've raised the concerns on the management and business model.

In every investment reasoning I always evaluate my pros and cons in any investment opportunity.

Yes, HaiO is making tons of money but what's the concerns? What's yours? Well mine are the two simple issue, management and business model.

Main issue here is, are the concerns that I raised legitimate?

Are you comfortable with a MLM business model? Would you invest and buy-and-hold for the long term in such a business?

The issues I raised about the management. Well, did it not happened? Was it not legitimate?

Review Of Hai-O

Dedicated to Unker TK.

All data is compiled by myself from Bursa Malaysia website. ( I am liable to make an error and if I do make an error on any numbers, do let me know)

Background.

HaiO sells herbs, health suppliments, health tonics and tea. Here is the company website: http://hai-o.com.my/

Hai-O yearly earnings track record.

Numbers are always extremely interesting and can always be interpretated in many, many ways.

For example, using the bigger picture perspective, one can see from the above table that, HaiO's performance from 1999-2006 was poor. FY 2006 showed HaiO earnings 10.1 million which is a fantastic improvement from its fiscal year 2005's earnings of 5.5 million. However, I would base it on the bigger picture and would consider the fact that for its fy 1999, HaiO was already earning some 11 million. Hence the huge jump in earnings in 2006 should rather be discounted and that HaiO's earnings only turned around in 2007.

So from a bigger picture perspective, one can argue that so far, HaiO has only fantastic year which is fy 2007 and also judging from its ttm (trailing twelve months) earnings, HaiO should have another grand earnings for its current fy 2008.

Now here's another way to look at it where I can make HaiO look like one incredible growth stock!

Let me take out the FY 1999 to FY 2003 earnings. And let's look at the earnings below.

This is now looking like one incredible growth stock eh?

Firstly, here's a site for you to calculate your CAGR (Compounded Annual Growth Rate): http://www.moneychimp.com/calculator/discount_rate_calculator.htm

Let us see if we calculate the CAGR from 2003, we would get the following:

Which looks simply superb! A company growing at an annual compounded growth rate of 57% for its most recent 5 years!

And it's so good that the company has this chart on their website. (see http://en.hai-o.com.my/new/investor_financial_highlights_profit.asp )

However, if the time frame is switch to focus on HaiO's performance from 1999 to 2003, see the results below.
And the CAGR would show a terrible result.


Point is one should understand that numbers can tell different stories depending on how and where you want to look at it from.

For me, I would merely note that HaiO had a fantastic fy 2007 and this year, it should have another fantastic fiscal year.

Would I boldly declare HaiO as a fantastic growth stock? Would you?

Some would simply argue that two great years do not make a growth stock.

Some would simply argue that in HaiO's case, one should look at the bigger picture. From 1999 to current, one has a 10 year time frame, and out of this decade, HaiO has probably performed terribly for 7 years! Although the current 2 years, HaiO is performance is fantastic.

Hey, don't stare at me. I already said that it's so subjective on how one looks at a set of numbers, didn't I?

Hai-O's Current Quarterly Earnings

If you look at the table above, basically HaiO's change of fortune happened since its FY 2007 Q3 earnings.

Balance Sheet

Balance sheet is looking great lately. However, from the quarterly earnings table do note that SI denotes Short Term Investment.

And I never do like to see stuff like this in our local stocks. For me, a listed company should just concentrate and maintain their focus on the company's core business ( Did HaiO failed in this area before?) and not dabble into short term investments. Any excess cash should be simply returned to their shareholders.

From HaiO's website, from their 2007 Annual Report (634 KB) (see page 115) it states that this short term investments is in Unit Trusts!

As of the recent quarterly earnings reported last month, short term investments stood at 22.850 million. Now isn't that an awful lot of money to put into Unit Trust?

Broker Coverage

Affin, OSK and RHB Research covers the stock. So does I-Capital.

RHB in its latest report:

• Corresponding to the change in our FY04/08-10 earnings projection, indicative fair value is upgraded to RM4.64 from rm4.04 based on unchanged target PE of 19x CY08 EPS, which is at 40% discount to our CY08 target PE of 16x for the consumer sector, to reflect the smaller earnings base and market capitalisation. Maintain Outperform.

Note: I see CY08 earnings net profit forecasted by RHB is at 38.1 million. (ttm earnings indicates a net earnings of 37.6 million)

OSK in its latest report:

• Maintain BUY. Having taken into account on the current stock market condition and our downgrading in the GDP projection from 6.2% to 5.8%, we are now more conservative thus assuming the lower band of the PE and P/BV of the retail sector. Notwithstanding, our target price revised higher following the earnings revision; and rolling our numbers to FY09. We peg a target price of RM5.00 (previously RM4.60) by applying the composite of 10x (previously 12x) over FY09 EPS of 50.6 sen and P/BV of 2.6x (previously 3x). We reiterate our BUY recommendation on Hai-O.

Note: I see OSK is basing HaiO value on its estimation of HaiO's FY09 earnings, which is estimated at 42 million.

The reports can be be downloaded here: Hai-O Robust earnings driven by MLM division, Hai-O 3QFY04/08 Results Boosted by MLM and Hai-O Amazing Performance

Pros

1. Earnings have been absolutely fantastic the past 2 years or so.

2. Balance Sheet is looking fantastic. Its cash flow is simply awesome!

Concerns

1. Is this a flash in a pan?

What's driving this success for HaiO? Last June, the following article was published on Star Business: MLM and pu-er tea to drive Hai-O sales. The following section is worth noting:

• The sterling performance was due to the MLM division, more intensive sales promotions by the retail division for its royalty customer programme and additional sale of pu-er tea.
  
  Revenue contribution from the MLM division grew 84% while the wholesale segment jumped 119% in FY07.
  
  In addition, the company’s profit margins had improved, thanks to the ringgit appreciation, which lessened import costs and it saved RM1.5mil from a waiver of rental costs and reimbursement on certain expenses for leasing of a shopping complex.
  
  Higher investment income also added to the profitability, Hai-O said.
  
  In keeping to its promise to pay 50% of after-tax profit to shareholders, Hai-O has declared a final dividend of 13 sen per share, bringing the total dividend for FY07 to 18 sen a share.
  
  “We’re proud to be able to sustain our growth since we’ve been around for 32 years now,” Tan said, adding that by carrying only premium products, it was able to fetch better margins.
  
  The MLM model was also seen as sustainable as Hai-O had an average of 1,000 new recruits every month, he noted.
  
  Hai-O has started opening retail outlets in high-traffic shopping malls, such as 1 Utama, Queensbay Mall (Penang) and Pearl Point (Old Klang Road), he said, adding that previously it was focused on shoplots.
  
  Next year, another outlet is targeted to open in Mid Valley Megamall.

From a PURE investing perspective, serious consideration has to be made on the sustainability of HaiO's impressive earnings. In short, is it a flash in a pan.

As stated, pu-er tea and aggressive MLM is driving in the earnings.

Is there a sustainable long term competitive advantage in these two factors?

For example, pu-er tea. How many people you know really drinks this tea? Is it a fad? Is there a substitute equivalent? How much do you really know about this tea?

And then you have the MLM issue, all which is so highly debatble of course. Some believe strongly in such marketing strategy, while some don't because they believe that MLM simply don't last! ( The following recent article is interesting too: Top Hai-O agents earn RM1mil a year - wow, so lucrative?)

How? Would you rate this as a concern at all?

2. Is there a risk to HaiO strong cash balances?

I like to look at the past. It gives an idea what the company has done before and I used it as a rough indicator. For example, in the case of HaiO's strong cash balances, the main concern is what if the company squanders the cash by spending in an extravagant manner? Would this not be a legimate concern? After all, we are talking about investing (buy-and-hold long term) in this stock?

Back in 2003, there was an interesting article on HaiO.

(The above screenshot of the article is clickable for a larger and clearer image or u can see the same article here: http://www.hai-o.com.my/cms/layout/Printer.asp?ProductID=62 )

The following section of the article was very interesting for me:

• On why Hai-O was venturing into the IT sector, he said: “We are debt free and cash rich as we have RM8mil in fixed deposits, RM4mil in our current account, and RM20mil in overdraft facilities. Therefore, we will venture into any business if it can bring us some benefit.”

I didn't like how and what's been said. Rather arrogant in my opinion.

Firstly, HaiO then was a simple Chinese herbs player. That it wanted to venture into IT was a shocker! A shocking diversification if you asked me. And the manner it talked about its cash balances to the media was rather so arrogant!

And what's more shocking is the following table below.

As one can see from the above table, for its fy 2003. HaiO had a total cash of 13 mil. And note that the above table indicated a huge jump in the number of shares in HaiO.

And when I dig deeper, I noted that HaiO had a Rights Issue in 2003.

Now how? This gives a whole meaning of being cash rich company, yes? See, their debt free and cash rich was not via the company's hard work but this net cash resulted from a rights issue!

And what happened next was interesting.

Now if one look at its 07 Q4 quarterly earnings (Quarterly rpt on consolidated results for the financial period ended 30/4/2007), one would note..

• On 18 April 2007, the Company disposed of the entire 100% equity interest in Hai-O Informtech Sdn Bhd , comprising of 2,000,000 ordinary shares of RM 1.00 each for a total cash consideration of RM 280,000.

Invested 2 million.. sold for 280,000. What about the extras spend during this period? Remember the inital plan was to spend as much as 10 million!

And if one refer back that April 18th announcement: DISPOSAL OF SHARES IN HAI-O INFORMTECH SDN BHD (533171-D)

• 3. EFFECTS OF THE DISPOSAL The Disposal is not expected to have any material impact on the issued and paid-up share capital and shareholding of the major shareholders of Hai-O. The Disposal is also not expected to have any material impact on the net assets and earnings of Hai-O Group for the current financial year.

No material impact?

Take 2007 numbers. It said that it earned a net earnings of 22.114 million. Take this investment of 2 million. Sold at 280k. This is a loss of 1.716million. Yes it's small. BUT do compare 1.716 million to its net earnings of 22.114mil. Well that's about 7.7%.

And strangely, I do not see where and how HaiO accounts for this loss.

Anyway would you call that as an example of past extravagent spending?

Fast forward to present day.

Hai-O buying land in Klang for new facilities (See also: New warehouse to contribute positively to Hai-O in 2009 )

• Hai-O buying land in Klang for new facilities
  21 Dec, 2007
  Source: New Straits Times
  
  HAI-O Enterprise Bhd, a wholesaler and retailer of Chinese herbs and medicine, is spending RM50 million to buy a plot of land and build new facilities in Kapar, Selangor.
  
  The company will pay RM45 million to Bata (Malaysia) Sdn Bhd for a 11.2ha site, and spend another RM5 million to set up a new factory and a warehouse there, senior officials said.
  
  It has yet to finalise the building plan and manufacturing output, they added.
  
  Managing director and chief executive officer Tan Kai Hee said the company would use its reserves to pay for the land and build new buildings to expand its manufacturing output. It may also consider a private placement to raise the fund.
  
  "We are cash-rich, generating RM10 million to RM15 million annually to our reserves," Tan told reporters at the signing of a sale and purchase agreement on the Kapar land in Kuala Lumpur yesterday.
  
  Financial controller Hew Von Kin said Hai-O would use about 6.8ha of the land to build new facilities, while the balance of 4.4ha would be leased back to Bata for handsome fees.

Oh oh.

Where did I read this statement, "We are cash-rich, generating RM10 million to RM15 million annually to our reserves" before?

Dejavu again?

Some view an investment into a stock as being a business partner of the company. Now as a business partner of this business, how do you feel if your partner keeps telling the whole world that they are cash-rich?

And what about this 50 million land purchase again?

Tell me, am I biased or is the sum of this purchase simply way too extravagant? Isn't it simply excessive?

Isn't it like back in 2003. Company had no expertise in IT but yet it went in big time. And now spending 50 million to buy land.

Instead of trying to justify this so-called investment, let's focus on the size instead.

50 million is a lot of money!

Why can't this company spend 10 million instead?

Seriously, can the company not buy land and built a factory with 10 million? No other land in Malaysia?

Ok, if 10 million is not enough, how about 20 million?

Surely 20 million is enough, right?

So why 50 million?

( Note: Hai-O secured RM20m loan to finance property buy )

How? Does one see concern and risk to HaiO's strong cash balances?

And do note, HaiO has been actively buying back the company shares in the open market. And that HaiO's management has promised to return back 50% of its earnings back to the shareholders as dividends and not forgetting that it's rather active with their unit trusts investments. So much plans, eh?

And it all seems to hinges on this pur-tea and MLM earnings.

How would you evaluate your risk in such an investment?

Would you invest in this company?

Review of Bursa Station - Day 3

Today I decided to test Bursa Station ability to provide me with information from an investor perspective.

And since I had been chatting a lot on every one's favourite 'investor', bullbear, from FusionInvestor chatbox, I decided to make this a posting with dual purpose: A review of HaiO and A Review of Bursa Station.

First I add Hai-O into my Stock list.

With the cursor clicked on HaiO, I made a right click. A new window pops up and I chose Financials.


My immediate attention was where I drew the arrow. See how it states as 2008 Q3 and the previous quarter indicated 2007 Q2. An error?

So I decided to look at my other feeds.

The above was from RHB and the bottom was from Kenwealth, who uses KLSE tracker software.


And it would appear that everyone is following what's published from HaiO on Bursa website. Quarterly rpt on consolidated results for the financial period ended 31/1/2008 - indicated 2008 Q3 while Quarterly rpt on consolidated results for the financial period ended 31/10/2007 - indicated 2007 Q2. But since Hai-O had already reported its FY 2007 earnings, the quarterly earnings reported by Hai-O in Dec and Sept were wrongly labeled. ( I would not fault Bursa Station here)

Moving on, I scroll down the financial pop-up from Bursa Station on Hai-O.

Neat. The first line indicated a drastic increase of the number of shares and checking Bursa Malaysia website, this increase was caused by a 1:5 bonus issue back in Aug 2007. And as explained by Bursa Station the figures shown are extracted directly from company announcements without any adjustments.

However, as an user, if Bursa Station was to be my one and main financial portal that has everything, then perhaps Bursa Station should come out with a better layout and design that provides the user better flow of information. Remember, as it is, I had only looked at 2 pages, and already I had to make clicks to other websites for better understanding of what's happening here.

Next, I noticed there is no indication of the total cash and total borrowings. Not sufficient! This would mean that I would have to dig out the information myself.

On another note, as an investor, note the investments line on HaiO's balance sheet.

The next page is I see when I scrolled down is the cash flow.

And then at the end is the financial ratios below.


Comments on the EPS line.

Yeah, so many ways to interpret EPS, makes you wonder why folks use PE as a main criteria

Anyway, as it is now, HaiO has some 82 million shares. Last year few years, it had only around 68 million shares. So what Bursa Station is doing here is it calculated all the previous years earnings per share based on a share base of 82 million shares. Yes, it's an adjusted eps figure. Some might like this setting but some might not.

Actually I find it lacking but for many, these information on Bursa Station should probably be enough.

And while right clicking on the stock quote on Bursa Station, I discovered that Bursa Stations offers tick charts!

Two windows opens up. One empty window and one the tick charts. (I am puzzled at the empty window!)

Of course, the main issue here is why a different charting within Bursa Station?

Anyway, it looks messy.

The lower two windows draws the ROC and MACD. I do not like it and I removed both of them via the drop down boxes on the top left. I then took out the Moving Averages too by clicking on the small SMA boxes.

A much cleaner look yes?

The colors of the candles and all of their indicators can be adjusted.

The min ticks offered are the 1, 2, 3, 4, 5, 10, 15, 10, 30 and 60.

So with this tick charts, all my early grouses on Bursa Station were answered except for price adjustment. For example, the below chart shows HaiO on a one year time frame. And the massive gap down in the chart on Sept 2007 is caused by the bonus issue. Again, perhaps Bursa Station should offer the option of having an adjusted price chart and a non-adjusted price chart.

Review Of Bursa Station - Day II

This morning I decided to test out the charts functions on Bursa Station.

Opening the chart is slightly faster than others.

To open the chart, I laid my cursor over my selected stock, Bursa, and then I clicked on Interactive Chart and a pop up window of the chart appears.

The charts options are clear and neatly laid out.

My first impressions. The chart appearance is rather plain, too plain in fact with no options to change the layout with colors. The only adjustable is the fonts setting which I thought was rather pointless. The chart is provided by ShareInvestor.

Now to play with it.

The chart comes with a duration setting. And I am impressed that it has a 20 year option. Which means that the chart can be viewed right from the start.

So I decided to click on the 20 year option for Bursa, despite knowing the fact that the stock did not exist so long ago.


I then change the option to a six month view.

On the right, there is a view option and the default option shows a daily time frame. The very first option is the 5 min tick charts. And the default option is 2 days. I opted for a 30 day view of the 5 min tick chart.

Next, I chose the 1 week 5 min tick chart for this stock.

The other options it has for the min tick charts are the 5, 10 and 30. No 15 mins ticks. And then it offers hourly ticks for the 1, 2 and 4 hours.

Next I decided to use the comparison charts function.

Firstly, I change candlesticks option to simple line chart. Then under the drop down option, I decided to compare Bursa versus Public Bank.

Here is the 6 months comparison view.



The blue line would represent Bursa, while the red line represents Public Bank.

I then chose the 5 year comparison chart since Bursa did not exist earlier than this time frame.


Looking ok so far but I have one major grouse.

On most other live interactive charts, when the user mouses over the candles on the charts, the charts displays that day trading stats, like the day's trading highs and lows and opening and closing day prices. Bursa Station chart does not offer this option.

Another thing is the user does not have the option to zoom into a particular area within a time frame. Other charting portals have this option.

Next, the biggest concern for users of charts is the accuracy.

I then decided to see if Bursa Station's charts adjusts for stock splits and bonus issues.

One that had a bonus + rights issue was AZRB.

As can be seen on the chart above, this charting software shows a non-price adjusted chart. Some likes it because it shows clearly the exact stock price before the stock is adjusted for the bonus and rights issue. And since AZRB had a bonus issue first, there was an initial huge gap at the 3.00 region and then it had a rights issue, which caused the other gap at around the 1.80 mark.

However, some would prefer the adjusted stock chart and Bursa Station does not offer one.

That's all for now.

(Day 2 connection - the portal started off smoothly. No hitch and so far, connection is stable.)

More SC action!

Published on Business Times: SC probe widens

• FRESH from filing its landmark legal suit, the Securities Commission (SC) is probing share trades of more companies for possible price manipulation activities, it was learnt yesterday.
  
  Business Times was told that the regulator is monitoring the situation before deciding if there are enough grounds to justify a full-fledged investigation.
  
  In an e-mail reply to questions sent, the SC said it proactively monitors trading activities on Bursa Malaysia to ensure a fair and orderly market, and that "firm action will be taken where there is evidence of wrongdoing".
  
  Apart from firms linked to Global Trader Europe Ltd, a UK fund, it is believed that the regulator has widened its scope to include Liqua Health Corp Bhd and Welli Multi Corp Bhd.
  
  The Global Trader probe is on possible insider trading. In late February, several counters had brutal limit-down crashes, timed with the UK fund's selling of pledged shares, with margin shortfall.
  
  The latest probe, meanwhile, is on possible manipulation in the trading of Liqua Health and Welli Multi shares. Sources said a senior dealer was interviewed last week on trading related to shares of Liqua Health.
  
  Both companies, with possible accounting irregularities rap hanging over their heads, closed at their lowest level on March 19.
  
  However, some 10 trading days later, shares of Welli Multi and Liqua Health surged by some 400 per cent and 200 per cent respectively.
  
  Liqua Health, which was also linked to the Global Trader probe, announced on Wednesday the appointment of chartered accountants Baker Tilly Monteiro Heong to do a forensic audit on transactions worth RM15 million.
  
  Welli Multi has had a roller-coaster 12 months, with a slew of expired memoranda of understanding on changes in ownership and expansions into China and Indonesia under its belt.
  
  On April 1, it signed a conditional subscription agreement with GEM Global Yield Fund Ltd and GEM Investment Advisors Inc, for the two US-based funds to buy under five per cent of the company for about 50 sen a share.
  
  On further prodding from the stock exchange, Welli Multi said it doesn't know who is behind the fund or its intentions.

Now I do understand that perhaps SC could have done much more than dishing out civil suits. Postings and the comments made on Dali's blog is certainly worth reading SC files landmark civil suit and Cat Out Of The Bag

Could SC done much better? Probably.

Are you happy to see what's happening?

Don't you think that SC by taking these actions indicates that perhaps finally we might see some changes in the local market for good? At least there is hope for a better future, yes? Or is this simply wishful thinking?

Or are you afraid that these actions would ultimately hurt the already fragile market sentiments? Some would argue by saying 'Aiyoh, Malaysian markets needs these buggers around mah and without them, how to cari makan?'

How?