MISC: Market observers noted that the likelihood that MISC will not be able to turnaround its petroleum and chemical divisions in the next few years from Oct 2012.However it was positive on MISC to expand its LNG division as this would provide the group with stable and secured earnings in the long term.

Moreover MISC may purchases around nine vessels for the ninth LNG train in Bintulu – the Gladstoneproject – Petronas Bhd’s floating LNG project and other projects. Thus contracts will be signed prior to MISC ordering the ships. However earnings are likely to kick in only from 2015-2016 onwards as these projects have yet to be completed. Furthermore if tanker companies were to go bankrupt and are forced to sell their ships, asset values could plunge.

Dlady: Dutch Lady is 51% owned by Royal FrieslandCampina NV. It does not have a stated dividend policy but has been paying out steady dividends. However dividends are not guaranteed subject to the company’s cash requirements and financial performance.

Tiger: It had expected to net rm1.56 million one time gain from selling the Klang land. The one time gain is significant versus its recent earnings. For the first half ended June 2012, the company had booked a 40% year on year growth in net profit to rm925000 from rm661000 on the back of a 79% growth in turnover to rm24.5 million from rm13.72 million. Of the rm7 million proceeds from the disposal, rm5.12 million will go to settle balance of purchase price for the land, leaving about rm1.8 million for working capital.

FGV:Expiry of its lock up period for the cornerstone investors in late Dec 2012

Astro: A block of 250,000 shares crossed sharply higher than the market price on 22 Oct 2012. Data showed the shares were transacted at RM3.05.

Its top management has been buying the group’s share on the open market even as the stock came under selling pressure for two consecutive days upon listing. Four of Astro’s key management members, including CEO Rohana Rozhan have collectively bought half a million shares on the open market for a total of rm1.37 million during the closed period. On the same day, COO Henry Tan Poh Hock picked up 100000 shares at an average price of rm2.72 increasing his stake to 700000 shares. Chief commercial officer Liew Swee Lin bought 200000 shares on 23 Oct 2012 at an average price of rm2.74 a piece bringing his total hldings in the company to 590000 shares. Another deemed principal officer, Tan Wei Ming bought 100000 shares on the open market at an average price of rm2.78 on 21 Oct 2012.

At rm2.72, Astro is priced at an estimated 26.15 times forward earnings.

Meanwhile the absence of EPF was a key reason for the underperformance. The EPF usually took up a substantial stake during the book building stage of IPOs. However it failed to come abroad Astro as it felt that the fair value was about rm2.80. If EPF had participated, the fund would have gone to the market to support the shares and average their cost. Other funds normally don’t go to the market when the stock is listed.

Other big funds missing from the book building included LTH and KWAP. They did not subscribe for Astro shares as it as non-syariash compliant. These funds are instrumental in supporting the share price performance of IPOs.

Nevertheless, the EPF might come abroad in the next few days from 23 Oct 2012 as it is looking to purchase AStro shares at rm2.70 apiece.

Critics however said that EPF would come in when yields turn more attractive meaning closer to 3% yield. Assuming a dividend per share of between six sen and seven sen, Astro’s share price would need to be between rm2 and rm2.33 to indicate 3% yield. With yields less than 3%, no growth and investors are paying a premium.

A Singaporecourt has ruled in favour of billionaire T. Ananda Krishnan's Astro group in a ruling to uphold a US$250mil arbitration award against Lippo Group. The Singapore High Court Justice Belinda Ang had upheld the ruling against Astro All Asia Networks Plc's ex-Indonesia partner.

In related development, Astro’s wholly owned subsidiary Measat Broadcast Network Systems Sdn Bhd had served a notice of arbitration on privately held AV Asia Sdn BHd. AV Asia in collaboration with Japan listed company Maspro Denkoh Corp was working on rain fade dish antennae, a product Astro allegedly was interested in. However no deal was struck between the two parties.

In Oct 2010, Measat Broadcast Network Systems was served with claim by AV Asia alleging that the former had breached the terms of a mutual non disclosure agreement dated Aug 2008. AV Asia sought an injunction restraining Measat from using any confidential information. It sought damages of rm4.41 million for R&D and a further rm1.4 billion for loss of commercialization, among others. In its prospectus, Astro had disclosed that it had good grounds to successfully oppose the suit.