Good Articles to Share
Koon not the only one
Saturday, 14 May 2016
The 83-year old Koon is under the spotlight for his late disclosures.
Key officials of other companies have also delayed their announcements on dealings in securities
HIGH profile investor Koon Yew Yin has been creating headlines for all the wrong reasons recently.
The 83-year-old, who has amassed a huge following among the investing fraternity, is in the hot seat for his late disclosures of the disposal of his shares in a number of companies namely V.S. Industry Bhd, Latitude Tree Bhd and most recently plywood firm Focus Lumber Bhd.
To be fair, Koon who is the founder of construction groups IJM Corp Bhd, Gamuda Bhd, and Mudajaya Group Bhd, is not the only one.
While the rules state that substantial shareholders must notify a company within seven days of the date of change in his or her shareholdings, there have been cases in which this has not happened.
Koon and his trades aside, one case in point is Chinese edible oil company XingHe Holdings Bhd.
Recent filings to Bursa Malaysia show that disclosures by the company’s controlling shareholders and directors were made way after the stipulated seven-day requirement.
Last month, XingHe said its director Ng Min Lin had disposed a total of 21.4 million warrants on April 1, 2015, but notice on this was given to the company on Apr 29 this year - a year after the selling was done.
The stock had shed over 30% over the one-year period.
Another two directors of the company, Ma Guoliang and Li Hui Jun, also traded in the firm’s warrants between the period of April 1, 2015 to June 8 2015, but only gave notice of the trades recently.
It remains to be seen what action will be taken.
It is understood that the Companies Commission of Malaysia (CCM) is the authority on this, given that the obligation of a substantial shareholder to notify the company of the changes in his shareholdings within seven days is set out under sections 69E, 69F and 69G of the Companies Act, 1965.
In terms of the rules, once a substantial shareholder informs the company of his shareholding changes, the company must make an immediate announcement to Bursa Malaysia pursuant to paragraph 9.19 (17) of the Listing Requirements.
If there is no compliance, the onus is on the CCM to take rightful action.
In 2011, Datuk Low Tuck Choy, a substantial shareholder of Ho Hup Construction Bhd was charged with failing to notify changes in his interest in the company within seven days as required under the Companies Act 1965.
Notably, the Securities Commission also monitors changes regarding interest in securities held by directors and CEOs of public listed companies.
Besides XingHe, a random search on Bursa Malaysia’s website also revealed another example of a company where its substantial shareholder did not comply with the disclosure ruling, namely timber and wood-based product company Priceworth International Bhd.
According to its most recent filings to Bursa Malaysia, it appears that its substantial shareholder, Lim Nyuk Foh, had missed announcing his latest acquisition within the necessary disclosure period, announcing the purchase of 4.5 million shares made last December, only earlier this month.
Lim, who had prior to this made announcements of his buying and selling of shares in the firm accordingly is the managing director and founder of Priceworth.
In April 2015, he emerged as a substantial shareholder in property company Bertam Alliance Bhd after he bought an estimated 12 million shares from the open market.
He has since become managing director at Bertam.
Coincidentally, filings to Bursa Malaysia show that Lim also missed announcing his latest purchase of shares in Bertam within the required time frame.
On Jan 7, he acquired 3 million shares in the firm but only disclosed the buying on March 15.
In Koon’s case, V.S. Industry had on May 4 announced to Bursa that he had ceased to be a substantial shareholder in the firm after having sold some 44.08 million shares between March 18 and April 11.
Prior to that announcement which was made only several weeks later after the stake sale, Koon was the third-largest shareholder of the electronics manufacturing services provider with an 8.8% interest.
As for furniture manufacturer Latitude Tree, Koon started accumulating its shares starting in October 2014 and finally emerged as a major shareholder with a 5.01% stake.
He ceased to be a substantial shareholder in the firm at end-November 2015 but only gave notice of his disposals two months later.
Finally, on Wednesday, Bursa filings showed that Koon had bought a 6.71% stake or some 6.93 million shares in Focus Lumber on April 11 with the company saying that it only received notification from Koon on May 9 regarding the purchase.
The Focus Lumber stock is up about 13% since the announcement of Koon’s emergence in the firm.
Shorter disclosure time frame
Areca Capital fund manager and CEO Danny Wong notes that timely disclosure is very important to ensure fairness and transparency across the market.
“It improves market efficiency for timely decisions and an inefficient market will discourage investors as it will only benefit insiders,” he says.
Wong also suggests that there should be a more robust system for disclosure here.
“It should be automated.”
Another observer who is well-versed with the local capital market concurs.
“In order to protect minority shareholders, substantial shareholders who are often the controlling shareholders should make the disclosure within 24 hours as opposed to the current seven market days so at least the minorities are aware that they (the substantial shareholders) have sold in the case of a disposal,” he says.
He points out that after seven days, a stock may have already lost a lot of value without the minorities being aware of what had actually happened.
In neighbouring Singapore for instance, the disclosure period requirement is much shorter, that is within two business days.
Fortress Capital Asset Management CEO Thomas Yong shares the same view as the rest.
“Trade actions of company insiders or even substantial shareholders are generally considered as material price sensitive information and as such require timely disclosures in the interests of protecting other minority shareholders and smaller-scale investors.”
http://www.thestar.com.my/business/business-news/2016/05/14/koon-not-the-only-one/
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Discussions
Be the first to like this. Showing 33 of 33 comments
Of course he is the only one. I mean the chosen one.
Kyy - One and only multi-millionaires/major shareholder who proudly promote his own share in i3…
2016-05-15 11:16
Yalah, betul itu…… kyy ini cuma satu dan cuma seorang pemegang saham terbesar sahaja yang tak rasa malu mempromosi dia punya saham dalam i3…..
2016-05-15 11:27
Pengikut kyy, rasa pedas macam cili api bila terkena kenyataan, betul tak??? Kita mesti berfikiran terbuka dan jujur…. yang salah tetap salah…..jangan nak menyorok muka dibawah bantal kalau dah bersalah tu..… undang-undang kita mesti ikut kita patuhi…. Janganlah nak berdolah-dalih….pengalaman dah lebih 20 tahun, tapi tak tahu apa itu undang-undang??? Mustahil ini…… biarlah, kita ambil ini sebagai iktibar dan pengajaran dalm hidup kita…..biar lambat asal selamat menimba pengalaman…. Janagn mudah terpedaya dengan janji manis kyy bila dia mempromosi dia punya saham dalam i3.. Alhamdulillah..
2016-05-15 11:48
CDS has the system to keep track of all holding, they should automate this ...
Who knows one of you become major shareholder and you dont know that you are so powerful will become major shareholder and didnt announce?
In 21 century moving towards 2020, system should take care of all this ....
:-)
2016-05-15 12:01
@malaysiaku, betul itu…… berani kerana benar….. pengikut dia sekarang tak sedap hati sebab scandal kyy sudah terbongkar…. kita orang expose yang benar, dia orang pula sakit hati… cakap kita orang menyibuk…… tak apalah…..pohon tak akan bergoyang kalau tak ada angin….. begitulah juga dengan kebenaran…
2016-05-15 12:05
@euniceeng, Yes, they should make it automated….we are in 21 century… towards wawasan 2020….we are so advance in bursa, and yet our filling system still manual…. All major shareholders like us and small fish should have this system in our CDS….. let be transparent and more organized in bursa…but Malaysia is a bit "lembab" type country.. so take time to implement it……I mean sure it can be done….we are advancing towards 2020 vision…..
2016-05-15 12:24
KYY trade stocks very long so know the rule but not other people. They are busy to take care business of their listed companies. If business don't get how can report good QR.
rainbowyen Of course he is the only one. I mean the chosen one.
Kyy - One and only multi-millionaires/major shareholder who proudly promote his own share in i3…
15/05/2016 11:16
2016-05-15 13:07
Do other people highlighted in Star trade stocks like KYY everyday or once in a bluemoon?
2016-05-15 13:24
Posted by stockraider > May 15, 2016 01:23 PM | Report Abuse X
If police stop Mr koon not wearing seat belts.....Mr Koon should just pay the fine loh.....!!
But most important the authority must enforce the offence loh....!!
Right now there is not much enforcement....thus the authority should be blame too.....!!
stockraider
994 posts
Posted by stockraider > May 15, 2016 01:26 PM | Report Abuse X
Raider say even fine.....the amount is likely to be small too...thus they will continue to break the law loh.....!!
Raider suggest, if they break the law beside fine....they need to be suspended from dealing with share at least 1 year loh....!!
2016-05-15 13:28
Another missing information in the Bursa announcement is the share price, seldom shown in the transaction. No transparency at all.
2016-05-15 15:57
don't punish a road offender.....because others also offend....
don't punish a raper....because others also rape
don't put a killer to death.....because others also kill...
don't punish koon.....because other also report late......
2016-05-15 18:47
Mr.Koon I always support you based on the followings
1.You have written good articles on shares.
2.You have a good thought/wisdom in your written articles.
3.You have the positive thinking in receiving good/bad comments.
I enjoy reading whatever articles you have written.
Finally I wish you good health & happy.
2016-05-15 19:54
Mr.Koon I always support you based on the followings:
1.You have written good articles on shares especially Xing Quan, Rsawit, Jtiasa, Mudajaya and a little of Genetec. I have learned a lot on how ikan bilis were played out in the market.
2.You have a good thought/wisdom in your written articles especially on how a big boys launching a series of promotion activities (modus operandi) before engaging disposal a large quantity of shares.
3.You have the positive thinking in receiving good/bad comments. No matter what opposite opinions received you are willing rebuke in a positive manner ie..Idiot, stupid.
I enjoy reading whatever articles you have written.
Finally I wish you good health & happy.
2016-05-15 20:10
Not hundred percent you must blame the old man . Actually there is another party that can trace when some one is accumulating and exceeding the five percent threshold or down .... Which is the company secretary of that counter . Eg . Flbhd. The company secretary staff would insist timely disclosure of share movement and then would submit to bursa. a couple days delay can happen . B4 it appears in bursa annoucement. BUT. The selling action would cause loses to late followers and the sickening part come out with the statement to buy back at lower price. Truly sincere superinvestor should keep on accumulating or just makan the dividend . , after all the co is suppose to be good for investment .
2016-05-15 21:52
"In Koon’s case, V.S. Industry had on May 4 announced to Bursa that he had ceased to be a substantial shareholder in the firm after having sold some 44.08 million shares between March 18 and April 11"
@somchik is right. But rather than a few days, it is actually way more than that. A few days is not that bad. haha
2016-05-15 22:02
come on ... dont to to defend him. other people never promote their shares ,, haha buaya besar ini
2016-05-16 09:45
In the first place, why everybody believes him? Share trading is a zero sum game. Your loss is my gain.
2016-05-16 09:49
Papa Koon, can I be your only charity son?
“I am the only one in the world who have written in my will that all my remaining assets will be for charity to help poor people after I die,” Robin Koon said.
2016-05-16 10:42
i honestly think that this problem could be solved with technology.the filing system is obsolete and company secretary should be more proactive
2016-05-16 11:31
when something which is super easily done with technology is still managed by 555 book style, it is done on purpose la
2016-05-16 11:45
the buying n selling by major shareholders even shareholding at 1 % irrespective of 5% shall be automated given the present 3D n Nano Tech age . This is the only way left to protect the minority shareholders who are in the receiving ends all the time. In fact they are the losers esp in share trading when all the info were withheld at the expense of the big timers...
2016-05-16 14:49
The SC should regulate more stringently to make investing in the KLSE a fairer investing avenue for ALL. Let the rules to enforced stringently without fear or favour. In the past, rules had been bent and even those who traded unfairly and blatantly "cheated" were given only a slap on the back of their hands.
2016-05-16 19:17
Rule is rule. He must follow. Perhaps other people not aware the ruling before. So can KYY announce today dealings within 7 days?
Posted by munhou > May 16, 2016 11:31 AM | Report Abuse
i honestly think that this problem could be solved with technology.the filing system is obsolete and company secretary should be more proactive
2016-05-16 20:17
Koon will always say " i already old, my age 85 and i have so many margin to manage" or i forgot this , i forgot that. so can we still trust koon?
2016-05-19 10:10
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He knows the rules, he breaks the rules again and again. Better put him to jail first and talk later. SC must take stern actions against all those breaking rules. Otherwise, all minority/retail shareholders/investors must unite to file a law suit against Bursa for huge compensation. Agree?
2016-05-14 23:47