vince: That's true. Can one be blamed if he suspects the motives of the people who had put up the story? They *know* that many can be driven to buy just on rumour and that more will join in when there's movement. These happen last Friday.

(1) Why didn't they verify it with the SC first? Is it because they know that the SC will reply with exactly what it later said to The Star; which will result in a "no story"?

(2) The timing - they could have easily posted the story after market hours or on a weekend. This way, people will have the time to seek out the truth. It's not exactly an urgent story. But the fact that they chose to do so on Friday afternoon and without verifying with the SC raises questions. This smells of malice and a conspiracy to con speculators and make huge gains for certain people. Who are these people??

"Securities Commission should throw the book at The Malaysian Insider"
http://anotherbrickinwall.blogspot.com/2012/08/sc-should-throw-book-at-tmi.html

Chuchu: These shareholders will have to declare whatever that they buy or sell and BSKL will publish the transactions. We will know soon enough.

@franksoweto: Oh, so they (MI) too had published the denial? But the more important thing is this - are they strongly sticking to their story come-what-may, or is there an attempt to wriggle out of this and place the blame on those "government sources", whoever they are (and whether they really exist")?

I can anticipate what is going to happen. When asked, they will hide behind that noble-sounding "We will NEVER reveal our sources and would rather lose our lives than do so!" That is so convenient. But since they want it that way, then they will have to accept FULL responsibility. They could have easily contacted the SC first to verify the story, knowing that something like this will influence investors, involves and puts at risk MILLIONS of ringgit. Why didn't they? Was it intentional i.e. a conspiracy to drive up the price for certain parties to benefit?

Yes, this warrants an investigation, especially if investors lose a lot of money. Get the SC, police, MACC involved. I'm going to see how it goes.

The second-last paragraph should be "order SIME DARBY to make a GO", of course. Anyway, although "Fortune favours the brave" (which I lifted from KC Loh's comment somewhere... and which he had also lifted Heheh!), there looks to be a big risk right now i.e. on the truthfulness and accuracy of the MI report. E&O's price next week hangs on it. As a few people have mentioned, perhaps it might be better to cash in quickly and run?

Since I'm also like you folks here: although I don't have any shares in E&O and counters that might indirectly benefit like ECM-Libra, I sincerely hope the MI report is right. Especially for the sake of those who had jumped in and grabbed the warrants - CA especially. Good luck!

There are a few things I'm not comfortable with in The Malaysian Insider's report. Firstly, we don't know who the writer. I've been a journalist before and I'd insist on getting a byline for this kind of `scoop'. Why is s/he being anonymous? But that's not too important - just thought I should mention it.

It's this one that I'm very uneasy about: it placed the information on "government sources" (and hence, "Hey! *They* said it - we are just reporting"). WOW! Sounds `very very credible', isn't it? But wait a minute: WHO exactly are these people? Does MI want readers to be led into assuming that they are `SC officers'? Or `very important and knowledgeable people inside the government'? It can be anybody - how about `not working in or with the government but have close contact with those who are'. As it is, the claimed sources are very vague.

As @fransoweto had mentioned, yes, The Star's report looks more credible. (But if it later turns out that MI is right, then the SC is the liar).

Another thing that looks odd - Even if the chairman is new, can he or the SC, just like that, order E&O to make a GO? This sounds so arbitrary. Shouldn't there be a process, like notifying those involved that a panel will review the previous decision first?

Has MI been used - or allowed itself to be used - to help someone or some party make big profits at the expense of speculators? By the way, I know for a fact that the ECM-Libra chairman, Datuk Kalimullah, had a hand in MI. And ECM-Libra is a significant shareholder of E&O. I'm not saying that he or ECM has a hand in this report - just mentioning a few things that I do know.

KC Loh: But Sime does not want to make a GO. This was/is the issue last year. Minority shareholders were not happy because only certain significant shareholders had benefited from the RM2.30 buy. Sime says it only has 30% which does not trigger a MGO. Cynical, I would say. But many are of the opinion that it does because Sime "had acted in concert with significant shareholders, and thereby surpassing the 33%."

Sime can afford to make a GO, and everyone would be happy. Especially the minority shareholders. However, the fact is that it doesn't want to for its own reasons.

There's a blog post about today's "Most Sensational Story at BSKL". It's written by one "Mat Cendana":-P
"E&O-Sime Darby Saga: Who are the LIARs?...and the Winners & Losers?" http://bit.ly/RFAzRK
Note that this post is for the layman, the man-in-the-street and not BSKL pros like the people at this site.

The Star says Sime DOES NOT have to make a general offer:
http://biz.thestar.com.my/news/story.asp?file=/2012/8/10/business/20120810174923&sec=business

So which is which? If Star is right, then the price should not have gone up that much.

Would be happy with just 0.01 for the warrant. But maybe I should be a bit greedy, eh. Am not in a hurry. And the expiry date is still a long way. Some good thing might happen to the company during the duration.

Would be great even if you are only HALF right:-) That will be a nice Raya.

Something seems to be happening. Good volume today, and a high percentage at Seller's price.

canu63: Yeah, it happens and will continue to happen to even people like Warren Buffett. You're spot on about the holding power and patience aspects. Have to add a couple more - doing homework in ensuring the companies' solidity and potential, plus the timing. For the latter, one can't always get at the lowest. However, getting counters at "reasonable" prices is often good enough. During a downswing - we will just have to be brave enough to buy these solid companies when most others are selling.

People are looking for some entertainment, although it might turn out to be costly later on. I feel BSKL is in a consolidation phase with factors like uncertainty over the GE dampening sentiments. Over the last week or so, despite the rises in Europe, US and most Asian markets, BSKL's performance has generally been lackluster. Most of the quality counters need to come down a bit. Digi should come down to 4.01 where it belongs Heheh!

But one good thing arising from the 24 August EGM - it has renewed interest in OSK:-) Now, if only OLH would hint about something - ANYTHING - there will be an upswing. It will give those who want to leave an opportunity to do so.

weewee: Sorry, I don't have any other information beyond what is available at the BSKL/bit.ly link above. As you can see, the document only mentions the assets to be sold.

While there may be potentials from this sale, it's a bit too far in the future. The price may be "fair enough" but we must also remember that OSK is selling off its crown jewels. It's only natural for minority shareholders to have an idea of what lies ahead after the sale. Yes, cutting off the nose would not be beneficial to all involved - to prevent this lose-lose situation from happening, OLH will have to address and handle the discontent simmering among some. Plus confusion and uncertainty about what lies ahead. That's all we are expecting and I'd say it's reasonable.

weewee- You are right about the EGM http://bit.ly/RCnGaW And it will be about the sale to RHB Capital. Now this will be interesting - the major shareholders will have 10% of RHB Capital. Good for them but why should minority shareholders vote for the disposal? What's in it for us? Why should we let them use OUR share of it for their own power base?

MBf is giving a 30 sen special dividend after selling its card business to AMMB. Now that's very fair to the minorities. But what about OSK?

Alamak! Have to abandon the research and forsake my Nobel Prize. My wife says "Why are you deviating from your system with its consistent results?? Better not look for trouble." ... not even small lots:-( Have to listen to her - check and balance.

HAHA! That's true. It's not something I would touch. But things are slow today - looking for some excitement and fun:-) To justify it, I'm err, claiming to do `scientific research'. Going to test these hypotheses: (1) "When a counter has tumbled down to a third of its previous price, it will rebound." (i.e. a dead cat will do the same when it hits the pavement) (2) "When a counter goes from 0.30 to less than 0.10, unseen forces will ensure that it will go up a bit". I might win the Nobel Prize for economics!

I'm watching this one and -CM for the same reason. Plus the long expiry date. But there's not much volume nor momentum today. With warrants, one needs the latter especially.

I usually stay away from these crazy counters. But just for some fun, gonna try at 0.095. Nothing serious as to shoot myself in the foot - just a few lots:-)

Don't dismiss Fajar just yet. True, it doesn't seem to be going anywhere lately but one must also take into consideration that it is rated at 1.00 in The Edge/JCF Consensus Table. I haven't done my homework on it yet but if JCF rates it highly, there surely must be a very good reason.

...provided the company is "okay". But nowadays we have access to various information about a company's business operations and potentials. In my opinion, this group is a very useful resource although one will have to take care not to be influence by the hype of people promoting some counter or another (which they hold and are *hoping* others will join in and help push the price up). Annual and quarterly reports are also easily available from BSKL's website. And don't forget those analysts' reports from the investment banks. Just do the homework and with a bit of luck (cannot discount this) one should do well enough - better than trust funds consistently.

It's still sliding. Now at 0.11. Will it really go below 0.10? That's a strong psychological support.

Hua Yang's par value is RM1.00, isn't it? So, 15% will be equivalent to 15 sen.

weiboy90: "can wait" - this trait is extremely crucial when trying to make money in the stock market. I've seen it often enough where the difference between one who is successful and another who isn't is in the former's ability to just sit and hang in there. For some people, three months is already "long term"! The market tends to work in up-down cycles. It would be great if we can always catch the lowest point and sell at the highest. However, that's not possible. So, the next best thing is to buy at "a reasonable price"... and wait.

It's not limited to JCY. Most of the usual suspects are rather subdued... IHH, FGV, SKPETRO, MRCB. Heck, even the speculative ones like GPRO, Nicorp etc. are slow. I think investors and traders are unsure where the market is heading and are waiting for leads.

Rights issue - it depends on what the proceeds will be used for. Investors tend to shun companies that will use most of it to pay for debts. That's why these companies add a sweetener (bait?) in the form of warrants. It's different if the issue is for expansion.

This is one of the "should have bought" for me - when it was languishing at 2.00. Unfortunately, capital is always limited, so I had to allocate it to other counters which I feel would generate more bang for the buck.

But I would often be reminded of Mah Sing. My wife's office is in Subang 2 and we would see the Mah Sing projects around there almost every day. One of them is the Star Avenue at the Jalan Sg. Buloh-Subang Airport-Shah Alam junction. While investors are speculating about the RRI land's future development, Mah Sing is already there. Great timing and location, what with the MRT depot nearby.

Itu yang kecewa hal Eden ni. Ingatkan nak start upswing. Tapi macam bungapi, sebentar aje. Lepas tu diam balik. Dia punya NTA tinggi jugak, par 1.00. Business pun nampak okay, ada power division. Tapi expenses banyak bayar ke anak-beranak, directos' fees berjuta.

There was sudden volume and it went up just like that today. Congratulations to those daring souls who had bought at 0.09/0.10 when things were very quiet and the price sliding slowly. There's the possibility some insiders might be stocking up pending some announcement. That restructuring - could SB be announcing their plans very soon?

Kc Loh: He does, and Digi is one of the counters. Among others. I would salivate when he tells about the dividends, bonus issues etc. But he - as with those patient investors - deserve these. "Good things come to those who wait"... provided you are holding good counters. Sigh... if only it had gone to 3.99 that time.

I hate this counter:-P

Raymond: It's more of "speculating" than "invest" when it comes to counters like this:-) And I would think that it's more suitable for the older ones because of these - the ability to sit it out for the duration.

The shining knight factor is crucial. This is something which speculators are betting on. In a way, Silver Bird seems `better' than a lot of those popular ACE counters and similar penny stocks because of this fact - unlike most of these ACE counters, SB has strong major shareholders in Tabung Haji and Berjaya. While it is true that they can choose to write off their investments, there's also the strong possibility that they would want to save face and salvage something.

Anyway, if one wants to indulge in a bit of high-risk speculation, don't bet the house on counters like this. Something like 20% of the capital spread out over a few counters might bring in some exceptional gains percentage-wise. But one must also be prepared to write off some of it should things not go his way.

There seems to be some excitement over the bird today. I wonder if there's some development, or is it just plain speculation?

Now it has gone down to 1.00! Surely there's not much of a downside risk... not at this price.

Don't be led by `cheap' because it could get cheaper although one might get lucky and catch the bottom. The technical readings show it is in a downtrend.

The problem with Bintai is its receivables, which will likely turn to bad debt. It had reported good results previously, and that's why it went up. However, recently, it revealed that it might have to set aside RM26 million or so from its receivables account. This almost wipes out the profit it had previously announced.

Still going down. Wonder what's the bottom. Below 0.10?

Ngai: It has already joined their club. Now it is the `star', taking over from Patimas:-)

Razif: Dah beli, jangan panik. *Nampak* macam stabil, kat 0.15. Mana tahu, lepas lunch nanti di rebound ke 0.20? Tapi, silap haribulan, turun lagi Heheh! Tak apalah, memang adat market. Mujur you tak beli masa 0.26.

Looks more promising although one must also watch the expiry date of Dec. 2012. Am waiting for a sign the mother will go on an upswing again. A 0.015 sen TP gain should be reasonable.

GPRO looks more dangerous than Cybert. From 0.29 yesterday to 0.17 now. True there's the UMA inquiry but why should it drop so much just because of that?

Could have bought DiGi at 4.01 but my `kedekut' trait insisted on "below 4.00". And we have seen how that went. DiGi is one of MANY opportunities where I had failed to take advantage of. And I KNOW it will happen again and again.

Fortunately, I am now able to live with this: regretting, definitely; but not beating up and hating myself anymore. I now can shake my head, shrug... and then laugh it off. This way, I can live for the moment and prepare for the future.

With Scomi, I think I'll pay the premium if I need to. It's not always possible to get the lowest price for everything. But if there appears to be an upside potential, paying a couple of sen more is definitely justified.

Scomi - yes. Have the feeling it might be something like MK Land very soon. Trying to get in at 0.215 but it looks very unlikely. I'll compromise with 0.22.

Don't know about 2.05 but something along 1.70 or so should be achievable not too far in the future. Any sort of news should see interest in it returning. The biggest impetus would be on the sale to RHB Capital - there should be something about it soon. Maybe this is a good time to accumulate; selling for a 10% gain in the next upswing.

Knight: Only now can I answer. It is "No":-P
Things are getting volatile again for Cybert. Had thought it had stabilised around 0.31 last week. Apparently I'm wrong.

Based on what I've read here, I'd say it's prudent to adopt a wait-and-see strategy for the time being. The index-based counters are on the high side at the moment and it is likely that there will be some correction. Would be better to keep our gunpowder dry for now.

But, as always, there will be opportunities elsewhere - some selected second/third-liners might be where the action will be. MK Land, UOADEV and TH Heavy seem to have run out of steam and are consolidating. Wonder what will be the focus next week?

@nuha: I wouldn't dare to answer your question... because I still don't have the ability to see the future:-P

When one buys IHH-CC, he's betting that it can, from the current 3.14, reach 3.42 by 29/3/2013. I'd say that's a reasonable target. For one thing, there's the usual year-end window dressing period where institutional investors would add to their portfolio, and it's very likely that IHH is in their list since it is/will be a component stock. Then there's the traditional Chinese New Year rally period. At the same time, there are the risks - the biggest is the negative effects from overseas. As for the General Elections, IHH isn't a political risk. But if the market goes down, it might be somewhat affected.

Back to your question: As passerby says, the current premium is reasonable. But that's assuming the mother price doesn't go down. You will have to evaluate the situation yourself in whether to hold or sell. I'm keeping an eye on it - will likely buy if there is volume. But it won't be today (I usually try to sell on Fridays, not buy *Usually*).

Here's the formula which passerby and alntm gave to calculate the premium or discount on warrants:

(Current Warrant Price x Ratio + Current Mother's Price)/Exercise Price x 100 = x%. If it's less than 100%, then it's at a discount. Anyway, many are at a premium, and as passerby say, it's okay to pay a premium based on several factors. Look at the thread of SKPETRO-CA for more information.

Err, because there's not enough power, perhaps?:-P

It's a fundamentally good company. But it has a huge problem is going up past 0.93 because speculators would take profit at this price. The drop is a good opportunity to buy - around 0.88 would be reasonable... and sell at 0.91. Yeah, just 3 sen but when you keep repeating it a few times, the profits add up:-)