Malaysia bolehland accounting standard actually asked all PLC "must" change to MFRS, but those old property companies reluctant to change because it'll affect their accounting report. Example, one quarter big lost, next quarter big profit, short minded investors would be confused if don't understand. So Malaysia type of MFRS standard, even if it's compulsory to change, because it's so special, almost majority property PLC do not change. So this company already follows MFRS in all business, cannot change back other standard even if they diversify into property business, kind of accidentally too compliance and follow too much rules.
PAR reduction made no changes to fundamental. Investor shall look at NTA which is the actual value of the company. Again, country like Malaysia still have PAR, which is dinosaur standard. Rationale for most companies is to mark-to-market price condition when they do PAR adjustment. Market is hard to predict and if there is any fund raising in future, a lower PAR gave the company early preparation. Example, if market is bullish again, if fundamental share price goes up above NTA, say 13 cents, company may do placement or right issue say x% discount or 11 cents; if market is bad and share price remain low say 9 cents, company may do fund raising say 8 cents. Most companies may saw share price goes "up" if there is fund raising to get better pricing.
Any method is workable, it depends on long term fundamental. Company should reward investors with dividend if fund raising made money from business. My 2 cents.
Stock: [NEXGRAM]: NEXGRAM HOLDINGS BERHAD
2015-09-23 03:29 | Report Abuse
Malaysia bolehland accounting standard actually asked all PLC "must" change to MFRS, but those old property companies reluctant to change because it'll affect their accounting report. Example, one quarter big lost, next quarter big profit, short minded investors would be confused if don't understand. So Malaysia type of MFRS standard, even if it's compulsory to change, because it's so special, almost majority property PLC do not change. So this company already follows MFRS in all business, cannot change back other standard even if they diversify into property business, kind of accidentally too compliance and follow too much rules.
PAR reduction made no changes to fundamental. Investor shall look at NTA which is the actual value of the company. Again, country like Malaysia still have PAR, which is dinosaur standard. Rationale for most companies is to mark-to-market price condition when they do PAR adjustment. Market is hard to predict and if there is any fund raising in future, a lower PAR gave the company early preparation. Example, if market is bullish again, if fundamental share price goes up above NTA, say 13 cents, company may do placement or right issue say x% discount or 11 cents; if market is bad and share price remain low say 9 cents, company may do fund raising say 8 cents. Most companies may saw share price goes "up" if there is fund raising to get better pricing.
Any method is workable, it depends on long term fundamental. Company should reward investors with dividend if fund raising made money from business. My 2 cents.