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BNews Reader : Protasco Bhd pump and dump pattern. Who are the insiders? - 28 Feb 2017

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Publish date: Tue, 28 Feb 2017, 12:26 AM
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Feb 28, 2017 - Construction company Protasco Bhd on 27 February 2017 announced the quarter 4 report, with lower than expected results. Net profit plunge 88.5% same quarter year to year, revenue declined to RM1.09 billion from RM1.31 billion previously, full financial year to year.
 
" KUALA LUMPUR, Feb 27 (Bernama) -- Protasco Bhd's pre-tax profit for financial year ended Dec 31, 2016 (FY16) fell to RM79.89 million from RM129.01 million in 2015.

Revenue declined to RM1.09 billion from RM1.31 billion previously.

In a filing to Bursa Malaysia today, the engineering firm said, the weaker performance was due to non-renewal of road maintenance contracts, fewer work orders on maintenance work and completion of property development projects. "
 
Source from: http://www.bernama.com/bernama/v8/bu/newsbusiness.php?id=1333144
 
Good Prospect, why the need of pump and dump?
 
Earlier, the market saw Protasco Bhd sudden surge of followings and transaction volume, with research reports and news announcement promoting the positive growth of the company, selling impression of high share price potentials, ranging from RM1.52 to RM2.30, while the share is traded at around RM1.20. Among others including Malacca Securities, The Edge (of cause), and Kenanga research.
 
Kenanga research specifically reported "Protasco - An Undervalued Gem", with a price tag of RM1.52. http://klse.i3investor.com/blogs/kenangaresearch/112986.jsp
 
 
 
The pattern of share price turbulence is typical pump and dump method to distribute shares to small investors. Market question who are the people who promoted the share and who are buying and selling before the latest quarterly report is published?
 
Despite weak quarter, with huge drop of maintenance project margin, as well as plunge of property sales resulted in loss-making quarter, Protasco Bhd should be able to repay the huge gearing of close to RM500Mlm from the recovery of the PPA1M project by end of 1H17. As of 31 December 2016, Protasco total liabilities ballooned to RM996Mln (close to RM1 billion), with NTA drop from RM1.12 to RM0.93 (bonus shares adjusted). 
 
At the moment, the quarterly report looks artificially thin, with net profit drop 88.5% from RM20.52Mlm to RM2.36Mln, or below 1% net margin out of RM262.85Mln revenue churned. The market is concerned who are the insiders who promoted the shares during the closed period, and is it viable to justify the drop of margin to historical-low, and where the margin goes?
 
 
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BNews Reader : Protasco's Q4'2016 Profit Plunge 88.5% From RM20.53Mln To RM2.36 Mln - 27 Feb 2017

Created by newsreader | Feb 27, 2017

Discussions
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speakup

main suspect: Teh Poh Yee

2017-02-28 06:45

CPK999

Chong Ket Pen so good planning can make 1% profit. Debt 1billion revenue 1billion. Master piece.

2017-02-28 07:41

kmohan62

If what is alleged by Bnews reader is indeed true,than the onus is on the relevant authorities to carry out thorough investigations without a iota of fear and favour and bring to book the culprits so as to serve a lesson to future would be manipulators.Nevertheless,let this serve as a lesson to those greedy punters out there...who themselves know very well what they are getting into..you very well know the consequences of your action...there's no such thing as free lunch...you have to do your homework before you invest your hard earned money...do your own analysis first before deciding if a particular company is worth investing in..

2017-02-28 09:01

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