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Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Sat, 22 Jan 2022, 8:14 PM

 

Advice for AYS management - Koon Yew Yin

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With reference to the AYS price chart below, on 15 October, AYS share price was 88 sen when the company announced share placement of 38 million shares at 76 sen each to big investor who knew the company operation and its profit growth potential. No investor would buy 38 million AYS shares unless he knows the company’s business and its management.

How is the share placement price fixed?

According to Security Commission rule, the placement price should not be less than the average price in the last 5 trading days with a maximum discount of not more than 10%.

 

Ever since the share placement announcement, its share price has been dropping from 88 sen to close at 63 sen yesterday. It is selling below its share placement price of 76 sen. It is so ridiculous.

There are 2 reasons why the price dropped below its share placement price of 76 sen.  

1 The Budget 2022 proposal of increasing windfall tax from 24% to 33% if the company’s annual profit exceeds Rm 100 million. This has depressed practically all the listed stocks including AYS.

2 AYS announced reduced profit of 6.51 sen EPS in its  2nd quarter ending Sept. Its 1st quarter ending June was 8.5 sen. All investors do not like to see reduced profit. 

My advice:

Since the quarterly results are not audited, the company management could have made small adjustment without violating the listing rules. For example, by writing down the value of old stocks. The company could have reported less profit in its 1st quarter and more profit in its 2nd quarter. During the 2nd quarter, the company would have made more profit when the company used the cheaper stocks to product steel products for sale.  

I must to tell you my background so that AYS management will take my advice seriously.

I was a co-founder of Mudajaya, Gamuda, IJM Corp, Rubberex, MBM Resources etc. Moreover, I was a director of the Board of Engineers Malaysia for 3 terms, Member of Malaysian Standard Committee for Cement and Concrete and Secretary General for Master Builders Association for 9 years.

  

 

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Labels: AYS

Related Stocks

Chart Stock Name Last Change Volume 
AYS 0.64 +0.035 (5.79%) 9,128,200 

  GoldenShares likes this.
 
CharlesT If i were his family member i will feel ashame to read all his rubbish posts everyday....it's ridiculous
27/11/2021 10:16 AM
007007 He's advising AYS management how to window dress their quarterly accounts to artificially boost up the share price so that he can dump the shares at a profit.
27/11/2021 10:34 AM
SongYau9 Kena roasted by AYS?
27/11/2021 10:46 AM
Sslee Hahahaha,
I think previously he advise Jaks to do so. And Jaks did exactly so to ousted him with bad Quarter result and causing him losing his underwear margin call forced selling.

So becareful with what you wish for. Next quarter AYS will report quarter loss and out you go KYY.
27/11/2021 10:50 AM
SongYau9 Why not KYY buy over. kikiki
27/11/2021 10:53 AM
SongYau9 Same to OTB la..aiya
27/11/2021 10:53 AM
007007 KYY also advised innocent investors to use margin financing to the maximum to buy all the stocks that he recommended.......you know the objective.
27/11/2021 11:06 AM
rogers123 Manipulate the quarter report? WTF?
27/11/2021 7:53 PM
rogers123 I advise to AYS management. Record all the expected profit into the acc first. Then after 10 yrs only make impairment
27/11/2021 7:54 PM
stockraider This KYY is really desperate until he advice AYS management to manipulate the latest qtrly accounts loh!

But even if management listen to kyy, it is too late now mah, the sept qtrly accounts is already out mah!

No point manipulating the account loh...just look at serba....if business no good....no matter how u manipulate, the long run the share price will fall loh!

At the end the major shareholders, directors and management are in hot soup mah!

It is best to be honest & give a true and fair position of the company, every qtr whether the accounts will be audited or not mah!

GENERAL RAIDER ALWAYS STRESSED HONESTY IS THE BEST POLICY MAH!
28/11/2021 12:11 PM


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