http://klse.i3investor.com/blogs/sonapetroleum/59850.jsp

Hi, cleverboy. I just published my second article talking about Sona. I think market is over pessimistic at current price. You can check out my article in my blog.

Hahaha, methodmann. Perhaps u really need to take profit now in exchange of a good sleep over the weekend. U seem to be very contradicting to your very first reason of buying rev prior to the announcement. U said u bought rev becos u got a discounted price to enter iCar which u see tremendous growth potential in future. If u still remember this was the thesis for ur investment decision, u shouldn't be too worry about all the accusations on iCar. And the reason y iCar is so expensive compared to peers is simply bcos it is still immature in a young market (ASEAN) as compared to HK, Australia and others. This is a result of low base. What do u think carsales.com bought iCar at such an expensive valuation for? Every corporate decision has to make biz sense, and most importantly, this is non related party which implies fair market value from the eyes of successful industry leader. The accusations in the blog on Catcha group's rpt, u shouldn't take it as core transactions. The value of an immature internet biz is still pretty much its market share and user base growth. Lastly, I believe it is possible for Carsales.com to launch a go for iCar if they buy the 27% stake. As I mentioned earlier, losses in iCar is inevitable but not meaningful to Carsales.com (about 10% of its profit).

Hi, methodmann

As I said, if you are not comfortable then you can just take profit and move on. Or if you have time, you can take a look on how carsales.com make money from the same biz model in Australia. For those who doubt the biz model, highly advised to do so. I always believe great investors hold their belief strongly, even though share price does not react to their expectation. There are many reasons for share price movement. Sometime it can be good, sometime it can be bad. One must think logically. You can check out my latest article in i3 today, which I explain why sometime market does not react up to your expectation, but it may not imply your investment thesis is wrong. Short term share price fluctuation is all about supply and demand for that day (means ppl have profit to take instead of bad outlook)

Yeo, if u r buying rev because of iCar, u shouldn't be too worry. Today poor performance was mainly due to iCar share price tumbled to as low as 1.19 before rebounded to 1.33. If iCar share price regains it's lost ground in the coming weeks then rev shall follow.

Hi, Yeo

I will hold until they realize the disposal.

Hi, methodmann

1) rev didn't disclose the interested buyers, perhaps they are still in talk with regards the selling price. If the buyers are listed co, they would required to make announcement on their side if their names were disclosed in the announcement. So it is understandable why no names were mentioned in the announcement. Then u would probably wonder why they announce the intention to sell prior getting the committed buyers? I do not know for sure, but it could be requested by Bursa to avoid insider trading after the board firmed up the decision.

2) with regards to the selling price, it is really everyone wild guess. Carsales.com is a solid co (superb profitable being a role model to iCar) and their last purchased was AUD1.00 at March 14. As I said, this 27% if sell to Carsales will bring its stake in iCar to 49.9%, simply buy some shares in the market, Carsales can consolidate the iCar into the group. FYI, the reason for Carsales to buy iCar is their first mover advantage in the fast-growing ASEAN market, namely M'sia, indon, and Thailand. The losses impact to Carsales is neligible, but the growth potential is tremendous. This could justify higher price for iCar 27% stake as compared to its march purchase

3) the digital media biz see margin compression lately due to 18% revenue contraction in 6mfy14. Apparently the sales response has lost its steam and required more innovative sales strategy to push through the bottleneck. Buying an online biz is really about the trust on management's capability. The cycle is very volatile and u just need to have faith on them to come back when the biz encounters short term set-back...

4) with regards to the accusation of fraud on Catcha group, I think this is a norm for the online biz, given that most online biz burn cash like hell during the early years to gain clear market leader position in the specified field. So this always lead to skepticism during the early years. To buy an internet stock, one really needs to have long foresight on its forte and trust the ppl who runs it. Unfortunately retailers like u and me will have no privilege to know them. My advise to u is, if u don't feel comfortable with the management, the best investment strategy is not to invest in such a co.

Hello, methodmann

My answers to your concerns

1) I think the disposal is pretty much a done deal (99%, 1% failure is due to market crash which could put the deal on hold), they do not announce the price simply because they may not dispose the entire 27% to 1 single party. So average price is unsure. Top 30 shareholders control 95% of the co, so I don't need to tell if egm will pass the resolution or not. Rest assured, the stake wouldn't be disposed to existing directors and major shareholders as stated in the announcement, so price will be the best price under the arms length basis.

2) for them to announce in advance of the disposal, I believe management has ready interested parties in the waiting list. Worse case is to slowly sell in the open market if no one take up the remaining shares. But major shareholder wouldn't be so stupid to dump the shares which lead to market overhang (because Catcha group still owns 9% direct stake). Bear in mind all growth indicators for iCar is very positive. This is the reason why Australia investors so bullish about it

3) today iCar's share price weakness was mainly due to short term market concern on rev selling in the open market. As I said, they wouldn't do it because this is not at their interest. Furthermore, this is existing shares which will not dilute iCar's shareholders interest. I would think iCar's second largest shareholder, Carsales.com (22%) will see it as a golden opportunity to buy a controlling stake in iCar. In most of cases, controlling stake deserves a premium to market price

4) rev has never dispose any single shares of iCar since it's IPO 2 yrs ago. The declining stake is basically due to dilution effect from new shares issued. So for them to sell the jewel of the co now, surely need shareholders approval. Lastly, as I mentioned in my article, since Malaysia market doesn't appreciate iCar biz due to start-up loss making, it makes perfect sense to unlock the value of iCar in Rev. Thereafter, you will see a healthy rev with profitable digital media biz. If you really so keen on buying iCar, it is better for u to buy the co directly, since u will be given back the money on iCar disposal.

ST target price is 1.86