SFC of Hongkong has proposed to make IPO sponsors liable for the contents of listing prospectus. I am doubtful it will happen in Bursa. Most likely they will be reprimanded - a slap on the wrist. What is the use? Investors have already lost their $$$.

Hi Calvin, today's Edge stated that higher crude oil prices means higher cost of feedstock for the refiners.

Both the refiners are relatively unaffected as the price of crude oil is still considered low. Both of their shares are already cornered n if those big players do not throw, they can still march up. Both have small trading volume.

The Edgeweekly:-
PNB & Eastpring are probably nursing their wounds.

While the crash of the Titan took place, that top guy in Lotte defended himself by saying he thought all those issues are immaterial.
He further said $6.50 is a bargain.

Institutional investors complained that Lotte did not highlight the implication of TRES that wipe out 22 million loss to its earnings during their roadshow prior to listing

The earlier 1st qtr saw the one off super-normal profit of 44 million on butadiene. This qtr saw a drop in profit because normalisation of prices.

The well known excuse is of course the cut in water supply which resulted in a fall in 72 million in profit.

Analyst have thus got their forcast off the mark.

Looking ahead: the 3rd qtr will be dampened by the scheduled overhaul of its first Nafta cracker.

Listing cost of $100 million will be booked in the 3rd qtr

Normalisation of butadiene prices means profits should be much less than the first qtr.

Probably some cornerstone investors trying to buy as low as possible to average down their IPO price.

Hi niki, I am also of the view that below $4 is a safe bet. Maybank surely knew of all the new developments beyond its historical figures presented during IPO and they did a lousy advising job.

current yr to date EPS is 26.38 cts. This the 2nd qtr result. The latest qtr EPS is 6.58 cts. Assuming for the rest of the 2 coming qtrs EPS of 7 cts, the full year EPS 'could be' abt 40 cts.

Provided EPF is not one of the cornerstone investor during the IPO. Otherwise, they have to bite the bullet now. A few insurance companies are some of the cornerstone investors.

Joseph Stiglitz s "Free Fall".

Do not know if EPF is one of the cornerstone investor. If it is, it will be a disaster for all.

Maybank, as its advisor, knew about the coming overcapacity due to new plants in China starting production n should have reduced the IPO price by a wide margin or by a share split.

It means that they won't be achieving the historical high EPS reported in their prospectus. Grossly overvalued share.

See how those analysts at Maybank will value Lotte now. I think they dare not issue any analyst report on Lotte.

The question really is "have Tune finished its correction'? KWAP which holds a big chunk of Tune did not buy to support it.

I hope most of u have sold back to Lotte at 6.50.

Ask Maybank what the hell is happening since they are the lead IPO advisor.

By the time the capital controls came into force, an important event took place. The Fed lower its interest rates n in response the currencies of those affected countries which did not implement capital controls such as Thai Bath, Won, Rupiah etc went upwards bringing the episode to an end.

Yes, Tong's insight is enlightening. Alibaba's subsidiary Lazada has its own logistic arm known as Lazada Express which would deliver its goods without resorting to other couriers.

I beg to differ. Diversification for all its intent and purpose increase the risk. When a big crash comes, the only solution is to sell.
Fund managers diversify because they cannot sell all their shares in their portfolio. But to the common man, he can.
I have done in prior to to the 1997 crisis. When the Thai Bath was attacked, I sold off all my shares, some even at a loss. At that time, the KLSE already looked toppish. I bought again on 2nd Sept 1997 when the capital controls came into force. I made a tidy sum three months after.

Maxis is way ahead now

Maxis 2Q net profit up at RM574m, pays 5 sen dividend

All telcos are adjusting to the new 'normal'. Digi used to trade above $6.00. But the new normal requires it to trade between the range of $4-$5.00.

It still pays a divi abt 200.00 per yr. Business is still OK. Other stocks just paying 60.00 in divi per yr n u can see ppl clapping hands.

To me, it is just adjusting to a new reality. If u have accumulated it above $5.00, u will have to keep it for ages.

EPF is here to make $$$. Just look at how EPF sold down Axiata n push it up again. The other one is IHH.

Sori, it is inside Market Blogs

M.A. Wind 's piece is an extract from Bloomberg news. It is inside this forum if u wish to read the whole article.

Maybank Investment Bank Bhd (Maybank IB) has bought 17.1 million shares in Lotte Chemical Titan Holding Bhd as part of its exercise to stabilise the share price of the integrated petrochemical firm which was listed today.
Maybank said it is allowed to buy up to 27.77 million shares, equivalent to a 4.8% of the total number of shares offered under the initial public offering (IPO).

They are running out of bullets soon !!!

An excellent piece by M.A.Wind -the outlook is not good. It means more downside to come.

Copied from M.A.Wind -
"Back when Lotte took the unit private, the global economic recovery was driving strong demand for the raw materials used to make plastic and synthetic fibers used in everything from appliances to automobiles.

But as the years went on, Lotte Chemical did almost nothing to expand capacity -- unlike its global competitors -- despite having ample cash, according to Smartkarma analyst Toh Zhen Zhou.

In the absence of investment, revenue growth slowed. Lower prices for inputs such as oil have helped prop up profit but as the sales outlook for products like cars weakens, demand for Lotte's offerings has waned. Meanwhile, raw material prices have declined and overcapacity in China is further pressuring the industry."

Is this the reason for its poor foreign reception ??

Nepal’s central bank bars Axiata from repatriating dividends

retailers are made to carry the baby.

Everything is short term. In the long term, we are all dead.

Maybank buying now. Probably it will end above 6.40 to save some of their face.

Bursa would probably be flat. 1. Not much foreign investor interest 2. EPF too active selling down n buying back
Sell when there is profit. Risky to keep. I do not believe those investment advisor asking ppl to keep their shares for years.

What makes u think it will start in Msia ?

Stabilizing manager trying to stabilize it at 6.36. Look at the queue on the buy side.

the coming IPOs are risky. QSR now is trying to relist its out-of-the-trend food business. In KL, a lot of the big names in food business are closing down. QSR would probably be a business with zero growth. What a joke!

stabilization manager does not have to stablize, I think, since Lotte is itself buying back the retail investors portion at 6.50.

QSR gonna relist again....also tak boleh beli - Kentucky already out of date. Just ask the youngster .....

Beware of the Brunei bank which is going to do IPO here. Brunei depends on oil for its well being. Investment banks here would spin all the good stories abt Brunei's economy n price its IPO at the maximum.

"By looking at the EPS and PE at 11 of LCT, pls enlighten me if how does LCT "overpriced" at 6.50?"

If I am not wrong, even in their prospectus, there are other competitors in other countries which are below PE of 10. Maybe we should price it below the PE of 10.

the important lesson is "All IPOs are priced to the maximum" leaving little or no dedak for us.

"no suppprt price found so far till 6.39"

Where can we see the support level? Since it is IPO, there is not much we can see fr its chart.

The stabilization manager is no where to be seen ??? I think they already know abt who the sellers are.

If the sellers are Koreans, then maybe, they are not 'soh-chai'. They are still making $$$

Even the stablizing manager is playing safe.

I remember when Maxis was listed, they gave a 10% discount from the book-running price to the public. But for Lotte, they did not give any discount.

The truth is there is not much foreign interest in KLSE but investment banks took every opportunity to say otherwise.

They promised to buy back at 6.50. But who are those sellers??

"falling foreign interest forced IPO revision" -from The Edge today

An Elliott wave triple zig-zag for Tune. Tony resigned as a director.

In my opinion, at 6.50 u are likely to make a small profit. As most of the shares ended up with institutional investors. The stabilization manager will ensure that it won't go below 6.50. Best of luck.

AirAsia model for hospitals. Maybe they do not supply toilet rolls. U request for it n u have to pay. ... Ha Ha

If good news keep coming, but the price keeps dropping means that the stock has peaked.