Auditing is like any other business that is alway client centric. The auditor will try to resolve the issues faced by their clients as long as it's legal and above board.

Serba is a 6 bn MYR company. It is a company that any auditor would love to have as a client.

For KPMG to issue a red flag on Serba can only mean one thing and one thing only. If you ask me, I think the rabbit hole goes way deeper than our worst case scenario. No righteous company will quickly fire its auditors and appoint a new one, only those who have things to hide would take this path as they are aware that no convincing/arguing can persuade KPMG otherwise.

Do you think the authorities will take this lying down. I think investigations are on the way. Today's drop is just the beginning.

Just talk big hoping others to come in to buy and support the counter would not help much

Those who always say peb is worth more than RM2 better buy more. Put your money where your mouth is

New owner owns more than 38%.

The price of RM0.38 sen is final. What the auditor has been babbling about negotiating a new price at CCM is utter nonsense. The CCM is the venue to decide on the resolution. Either you vote for it or vote against it. It is not a forum to debate on prices.

Simple as that. For those who buy now...you max upside is the 1-1.5 sen difference. And the CCM may not be held at end of March. It can easily drag on till 3 May 2021 or even later...There is always a possibility of extension.

So, decision is yours. For me, this is game over counter. There is enough warrant holders to vote yes at the CCM. Any resistance is futile and pointless.

I think this God of Wealth and MalaysianIB_HongKong is the same person using different login id

huat ah....Unlikely price goes down to 26 sen...I foresee 45-50 sen will be the sweet spot.

Ok...I'm off this forum for the time being . We shall meet again in 2 weeks time. For those who hold on...good for you. And for those who have sold and made profit, good for you too....

To all, happy CNY, may all have a prosperous and healthy year of the metal ox ahead..Cheers bro/sis

what is high...buying at 38.5 today and price now is 34 sen ?....If we have deep conviction that price will eventually move to 50 sen at some time next 2 week, buying at 38.5 is a steal. No one, not every Warren Buffet can predict price/volume action within such short period...Look at his holdings in Apple, the price doesn't go up in a straight line, he made 30%+ losses at one time. Look at his gain now...

The main thing is tho have strong conviction on your own analysis...and act on it rather than been influenced by price action of a few days, even worse....on a single day, or hour by hour movement

those are fake volume...put there by the big shark....those of little faith will succumb to it and sell

I think at 36/36.5, this is a good price level to accumulate. ...before the big shark move it to the next support level

DeepValueInvestor, I'm still holding on to your beer.....ha ha...I'm happy for you that you realised your profits from this trade. As for me, I'm holding on, I strongly believe that unless it breaches 50 sen....it is still a buy...All this queing by seller at 37 sen 7.45 mn warrants is a scare tactic, trying to demoralise holders and to make them sell....These guys will be collecting at 36/36.5

Am not going to fall for their tactic.....

I have been analysing this counter for some time now. I'm collecting as price comes down...There is no more genuine sellers out there in big quantity. All this pushing down prices is just to collect by the syndicates.

I'm back....and I come this time with good tidings....For those who have seen my writings, I have been writing about this warrant when the price was just 27 sen. Just scroll back to what I have written and you will find I have been prescient thus far....

AT the current price of 38.5/39, I think the warrant still have legs to move up further. I'm in line with auditorandconsultant.

For those who have made good money, I'm happy for you guys. Not everytime we can all sell at the top.

I have comment enough...Let's hope the warrant price goes higher and higer...

Yes..En Kadir....it is a glorious day today

its broken...the manchus have breached the wall....

mother price also went up...

breaking greatwall now...

ha ha...looks like momentum is building.....

Just some thoughts before sleep, as we thank #deepvalueinvestor for his generosity in coming up with the option value of RM0.59 sen, some would ask, if the warrant true value is so high, why didn't it trade to that range for the past 1.5 years...?

I would like to think that similar to a lot of undervalued companies out there where analysts reports' indicate that such stocks are 30%,40% ,50% undervalued/strong buy/accumulate etc etc.....I think in order for price to move, there is always a need for some sort of catalyst to boost the price momentum upwards.

For bimb-wa , the catalyst is now with us....As we approach the end game IN A MONTH'S time at most, bimb would need to fix the 5 day VWAP price as the buy back price.

BIMB is genuinely shouting out LOUDLY to us....Please, I pay you for your warrants at any price as long as its the market 5 day VWAP price....If you guys managed to push it up to 60 sen, I WILL pay you 60 sen / warrant...or if you can do better and push it to 90 sen, I WILL pay you 90 sen / warrant.

Just give me the warrants so that I can complete the restructuring exercise and move on with my banking business.....

As far-fetched the above may sound, sometimes the truth is really stranger than fiction.....

i buy you beer anytime after MCO bro...u just name the place and time.

theintinvestor....what is your view on the change in the buy back price ?....If you are BIMB , why would you suddenly change the buy back price from 0.26 sen maximum to 0.26 sen minimum ?....

Why as BIMB, do you want to pay more to the warrant holders ?

Hi vespa. I don't think it was deliberately runned down to 27 sen. It was sold down by one or several individual investors which holds a large block of warrants. The warrants are mainly held by individuals, save for LTH and ASB. The option pricing value is just an indication of how far undervalued the warrant market price is currently at.

It did not take into account the "transaction premium" i.e. the rights of the warrant holders to jam up the on-going restructuring scheme. If BIMB fails to buy back all the warrants, it will be much more difficult to proceed with the restructuring plan.

The restructuring exercise involves asset worth about RM4.5-5 billion. Say 1% cost savings ? works out to be RM45-50 million which is worth around 11 sen / warrant.

Therefore the value of the warrant from the perspective of BIMB will be option value as per the calculator + transaction premium =

RM0.40 + RM0.11 sen = RM0.51 sen... thereabouts.

the change in the risk free rate shouldn't change the option value by much. the time to expiry is 3 years, should be more reflective if 3 year RF rate were used instead of 10 year MGS.

bro...,the strike price should be 4.72 instead of 4.27. You might also want to consider historical volatility from April 2020 onwards , taking out the pandemic panic selling in March 2020.

Balance of 38% is only RM45 mn in value. Small sum . Price can easily run up.

This is what this forum is for. to assist and provide info & clarity for all interested to invest. Please do share if anyone has updates or info that may be useful for everyone here.

the biggest shareholder is LTH owing 27% of the warrant and ASB 6-7%, the rest are held by individual investors and areca fund mgt. I don't think LTH will dump the warrant price down, like you correctly pointed out, they themselves would be affected by a lower buy back price.

Envestor, to answer your question :

1) How can BIMB has its own warrants ?. That is not possible. A company cannot hold its own shares other than treasury shares and for this matter, they don't have any warrants and can't hold any;

2) it is BIMB itself that change the buy back price from 26 sen per warrant (maximum price) to 26 sen per warrant (minimum price). Why would BIMB want to increase the buy back price ?. Very simple. To ensure all warrant holders accept the buy back plan. For argument sake, why would BIMB try to push the prices down ? , not to say that they can.

There are no bogey man in most share trades other than those penny stocks cornered by syndicates so please don't jump to conclusion that there is always a party or parties out there to push down or push up prices.

ha ha...if it goes up to 63 sen, I buy everyone here a beer....Just you know, I'm not an independent commentator here. I have vested interest in bimb-wa fyi.

simple maths. You buy any stocks, the quantum of it going down is as much as it would going up. 50:50 chance in usual share trading.

For bimb-wa, it will only go down to 26 sen, the upside is unlimited. You think for yourself if this matches your risk profile.

if we read about wallstreetbet, bursabet and all...this is the most ideal counter for such strategy.

Unlimited upside with a ready buyer who is a bank and not some cheapo company who will buy your warant at any price as long as its market price, irregardless of whether that price is grossly overvalued or not.

Low price doesn't necesarily means low risk. Last year at 0.21 or 0.23 price is before BNM/MOF approval for the restructuring. The banking industry back then was still struggling with the uncertainty of covid. All other companies' share prices were lower then. The risk holding on to BIMB-wa back then is way much higher than now despite the lower price.

Now we have a floor price of 26 sen, a certainty that the buy back will happen as the company just announced application for a court convened meeting. All is moving towards completion.

Last year....so much more uncertainty.

is best to buy our main block of shares now...say we avg out our cost to 28 sen. downside is 2 sen loss as floor price is 26 sen. Come closer to 2 weeks time, we all help each other out. each of us buy 30% of our current holdings to push the price up...For example: we buy 100,000 shares at 28 sen NOW = RM28,000. Then closer to price fixing we buy another 34,000 shares say at 33 sen = RM11,220.

Total cost of purchase is RM39,220, avg price is RM0.2927. Buy back at say VWAP is 32.5 sen. (Profit = 0.325-0.2927 = 0.0323 sen x 134,000 = RM4,328 (11% return for 2.5 months holding period with protection on downside risk of 26 sen)

lucky winner... the vwap price now is not important...price fixing is in 2 weeks time.

lucky winner, floor price is 26 sen. so all those past few days vwap prices won't matter much. if bimb wanted to minimise payment, they won't revise 26 sen as floor price, so all those prices below 26 sen are irrelevant. bimb will fix the price in 2-3 weeks time.

dont need to compute vwap so early. min buy back price is 26 sen, if they already annouced that, means they wont fix it so close to 26 sen. they want to raise it higher.

There is no hurry to sell into the market ...why ?. Bcos BIMB will buy it back from us. This warrant is like thorn to them in their restructuring exercise. If the can't cancel, their restructuring will fail...Their long term business competitiveness depends on the completion of this exercise....We as warrant holders are king makers now..

guys, just think, our risk of investment is so so low....the 5 day vwap buy back price by BIMB will ensure that if we average our buying of the warrants, we will NEVER lose much (% wise) while the upside is unlimited....I have been trading for more than a decade...U don't find such good offer so often.

guys, just think, our risk of investment is so so low....the 5 day vwap buy back price by BIMB will ensure that if we average our buying of the warrants, we will NEVER lose much (% wise) while the upside is unlimited....I have been trading for more than a decade...U don't find such good offer so often.

Maybank is the banker advising them on this

Lucky Winner...I like your name. I have gone through the annoucements..Spoken to Maybank Investment Bank ....dont think we missed any major issue here

paperplane, you are absolutely right. The main approval for the restructuring is from BNM and MOF , the approval obtained last Dec. This restructuring is critical for the survival of Bank Islam as they cannot have a holding company structure as it is now. The cost is just too high.

In order to complete this restructuring, they have to cancel all warrants. otherwise they get stuck and cannot proceed with restructurinng. This is why they willingly offer to revise the warrant price higher to 5 day VWAP subject to a MINIMUM of 26 sen.

Why would they do that ? revise the price upwards. They are afraid, very afraid that warrants cannot get approval for cancellation. From the announcement itself, you know that they are willing to pay more for the warrants.

How much more ?. Its entirely up to us to decide. The higher we push the warrant price, the higher BIMB will pay us. Its entirely up to us.

(this comment was copied from the mother forum)

It is very very unlikely they will cancel the proposal, their long term viability depends on the completion of this proposal. the warrant cost to them is negligible.

paperplane, you are absolutely right. The main approval for the restructuring is from BNM and MOF , the approval obtained last Dec. This restructuring is critical for the survival of Bank Islam as they cannot have a holding company structure as it is now. The cost is just too high.

In order to complete this restructuring, they have to cancel all warrants. otherwise they get stuck and cannot proceed with restructurinng. This is why they willingly offer to revise the warrant price higher to 5 day VWAP subject to a MINIMUM of 26 sen.

Why would they do that ? revise the price upwards. They are afraid, very afraid that warrants cannot get approval for cancellation. From the announcement itself, you know that they are willing to pay more for the warrants.

How much more ?. Its entirely up to us to decide. The higher we push the warrant price, the higher BIMB will pay us. Its entirely up to us.

Lucky Winner, as your name clearly indicates so, the application to court is to set a date for the warrant holders to approve the buy back at the 5 day VWAP price....So its time to push up warrant price as the it is now closer to the warrant holder meeting date

bousteadinvestor, u sure are a party pooper....Is it bcos of envy or regret ?. Please take your pessimistic attitude elsewhere. I'm sure all other investors here are not interested in your "no go" scenario. They are all sophisticated investors and I'm sure they will know what to do in the event the transaction does not materialise.

well said deepvalueinvestor...the price floor is 26 sen now. It will only go higher as per your view, cause bimb will buy your warrants at any price determined as at price fixing date. If price fixing date price is 60 sen, 80 sen or even RM1 / warrant, the company will still have to buy it from all warrant holders.

The warrant price no longer determined by mother price but more by the investors' sentiment.

paperplane...Hope you can help me out here....I think bimb-wa is a winner for sure. I cannot find another company where it will buy back your shares at any price..... This is such a good deal. And because it uses 5 day VWAP to compute the buy back price..., it will not deviate much from the previous days price... buying it is rock solid investment

I won't touch top glove.... No point chasing after it when no other buyer believe in it...