22/08/12: NAV=RM3.04, Price=RM2.33, ICAP traded at 23.4% discount.

NAV is Net Asset Value.

"50-day SMA = technical analysis(25%), buy / hold (50%), when to sell(25%)"
Wah, very deep lah, Hooi should write a book about this... maybe can get Nobel Prize... :)

... and yet he used 50-day SMA, a kind of technical analysis, to determine his trading range. :)

... and smallest minds spam! :)

Foreign funds’ transactions (17/8/12 announcement):
Laxey Partners Ltd, United Kingdom.

Type of transaction, Date of change, No of securities, registered holder, (Market Low-High(RM)):
Acquired, 13/08/2012, 24,000, Credit Suisse Securities, (2.28-2.31)
Acquired, 17/08/2012, 9,800, Credit Suisse Securities, (2.30-2.33)

Open market purchase

Total no of securities after change: 8,893,091, 6.35%

Jun12 results already out yesterday. Results bad. Earnings drop, revenue drop.... weak results. No wonder price drop today! Take profit while you can, the earnings downtrend is obvious in the latest 3 quarters!

15/8/12: NAV=RM3.04, Price=RM2.29, ICAP traded at 24.7% discount.

Oops, I mean PER(FY11)=2.1x (not FY12)

Net dividends for FY10 & FY11 were 2.5 sen & 3.11 sen respectively, that translates to net dividend yield of 6.7% & 8.3% at today closing price of 0.375. PER (FY12) = 2.1x.

A company which gave out cash dividend is less likely to have accounting fraud since they need hard cash to back it up. Those who did accounting trick are likely to give out bonus or shares dividends since nothing is really given out!

As long as its earning is growing at double digits rate as it did in the last few years, they are likely to increase the cash dividend in the future. A long-term investor should hold MSports for its dividends & potential capital gain once the market recognize its value!

On behalf of Hooi the spamming robot 2.0: Sold Padini at 2.25
Beat him at his own game, score = 3 :)

Sure, he is a robot, that's what he is programmed to do!
Now he has his supercomputer changed, even faster now! :)

Foreign funds’ transactions (13/8/12 announcement):
Laxey Partners Ltd, United Kingdom.

Type of transaction, Date of change, No of securities, registered holder, (Market Low-High(RM)):
Acquired, 08/08/2012, 20,000, Credit Suisse Securities, (2.33-2.35)

OPEN MARKET PURCHASE

Total no of securities after change: 8,859,291, 6.33%

He is not predicting the price, but just pretend to buy or sell on every available prices whenever there are market transactions on all those prices. He is just playing a simulated trading game with unlimited capital!

On behalf of Hooi the spamming robot 2.0: Bought Padini at 2.07

haha, you’re 1 step behind! How come your supercomputer so slow one? … Oh, must be those fake one from China… aiya, why buy cheap cheap things from China? You’re so rich, should buy the most expensive one from US lah. LOL.

Most of the minority shareholders already gave a thumbs down by voting with their feet :). Those who have not done so should vote against the EGM!

8/8/12: NAV=RM3.01, Price=RM2.33, ICAP traded at 22.6% discount.
Discount narrows slightly but still undervalued.

I thought with Padini price dropping, its NAV would drop, however, I was wrong, its other component stocks must have saved the day, phew!

Mat, I agree with you, I will vote against the resolutions in the EGM for sure, if I haven't sell them before the EGM.

To me, it is either
(1) sell the OSK shares if the price goes up (no point investing in a company if you don't like the management) or
(2) vote against the resolutions in the EGM & turn down the unfair deal.

Oh ya, my sources tell me it's now Hooi the spamming robot 2.0, equip with state of the art supercomputer, can spam at lightning speed... :)
Oh wait, don't spam so fast until this website crash ha.

Sure, he is back from repair shop mah.

On behalf of Hooi the spamming robot: "Bought Padini at 2.11"

Wah, Hooi the spamming robot is changing his trading range so fast that you need a jet plane to catch up!

I think there is a software glitch with Hooi the spamming robot, his latest post said "buy Padini at 1.89-1.92, hold at 1.93-2.21, sell at 2.22-2.34" but now he said "Bought Padini at 2.18 & 2.17"... hehehe.

In a simulated trading game with unlimited capital, you can continue buy until it rise eventually!

Foreign funds’ transactions (6/8/12 announcement):
Laxey Partners Ltd, United Kingdom,

Type of transaction, Date of change, No of securities, registered holder, (Market Low-High(RM)):
Acquired, 30/07/2012, 28,800, Credit Suisse Securities, (2.20-2.25)
Acquired, 31/07/2012, 15,000, Credit Suisse Securities, (2.21-2.24)
Acquired, 02/08/2012, 20,000, Credit Suisse Securities, (2.22-2.24)

OPEN MARKET PURCHASE

Total no of securities after change: 8,839,291, 6.31%

A director is an insider, EPF is a substantial shareholder - not an insider!

Anyway, from its announcements, EPF is trading SKPetro shares, sometimes even buy & sell on the same day!

More evidence supporting Hooi is a robot: he doesn’t care what other people say about him & continue spamming like nothing happens, as if he has no emotion. Hmm… typical characteristic of a robot! hehehe. Maybe we should call him Hooi the robotic spammer.

Director Selling:
03/08/2012 announcement:

Name: Shahriman bin Shamsuddin

Type of transaction, Date of change, No of securities, Price Transacted (RM):
Disposed, 02/08/2012, 450,000, 2.470

Circumstances by reason of which change has occurred: Disposal of shares in open market

(source: Bursa announcement, http://www.bursamalaysia.com/market/listed-companies/company-announcements/1029737)

I think Hooi the Spammer is merely playing a pretend/simulated trading game. He set a trading range like “buy at …, hold at …, sell at …” & then when there are market transactions in his range, he will post a “Bought at …” or “Sold at …”. I observed this in the ICAP thread, I believe it is the same here. This is like small kids playing pretend tea party game … childish, hehehe.

The proper way is to set up a model portfolio with a fixed capital and details of buy/sell transactions and analysis of its performance!

Wow, it’s unusual to see ICAP price rising so fast recently! Are speculators returning to ICAP?

ICAP was trading at a peak of 25.7% PREMIUM on 9/1/08 when speculators were actively ‘goreng’ it. However, speculators abandoned ship when market sharp drop during the US financial crisis & ICAP turn into trading at DISCOUNT since 8/10/08 & the discount kept getting wider.

Long-term investors, value investors, contrarian investors like me only bargain hunt when the prices are low, only speculators can provide liquidity & push up the prices.

Welcome back speculators!

1/8/12: NAV=RM3.01, Price=RM2.23, ICAP traded at a discount of 25.9%. Discount increased, more undervalued!

First time NAV above RM3! Well done ICAP!

KC Loh, Malaysia is still a net exporter of oil, not net importer! Some worried that Msia will go broke once we turn into a net importer.

Foreign funds buying (31/7/12 announcement):
City of London Investment Management Company LTD, England

Type of transaction, Date of change, No of securities, registered holder, (Market High-Low(RM)):
Acquired, 24/07/2012, 76,500, The Bank of New York Mellon (2.18-2.18)
Acquired, 26/07/2012, 365,600, The Bank of New York Mellon (2.18-2.19)
Acquired, 26/07/2012, 255,600, Northern Trust
Disposed, 26/07/2012, 610,200, Northern Trust
Acquired, 27/07/2012, 30,000, The Bank of New York Mellon (2.19-2.20)

Total no of securities after change: 8,717,600, 6.22%

It seems like foreign funds also take profit, however, overall it is still net buy.

Hooi the spammer, stop littering with junk info!

hooi, stop spamming, you're not providing any useful information!

25/7/12: NAV=RM2.93, Price=RM2.19, ICAP is trading at a discount of 25.3% to its NAV.
(NAV is Net Asset Value – announce every Thu evening for Wed closing NAV on Bursa website: http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=5108)

Foreign funds have been accumulating ICAP recently:
(1) Laxey Partners Limited, United Kingdom: last bought 18/5/12, holding 8,775,491 or 6.27% of ICAP shares.
(2) City of London Investment Management Company LTD, England: last bought 19/7/12, holding 8,600,100 or 6.14% ICAP shares.

Foreign funds know ICAP is under valued!

Capital Dynamics Sdn Bhd is supposed to be an independent investment adviser in Malaysia. However, its subscription is not cheap. Find it out yourself at:
http://www.icapital.biz/english/

They sent me the subscription form attached in ICAP annual report but I did not subscribe, it is > RM1,000 a year (can't remember exact figure).

It seems like there are a lot of uncertainties in the outlook of steel sector! No wonder analysts’ views split on the steel sector. From this website, you can see that the latest analysts' TP for Annjoo varies from $1.49 to $2.47 (4 research houses’ views).

Annjoo-WB expires on 10/1/13, it is worthless now!

To Julius:
(1) The number of shares you are holding will be the same after merger, OSK (OSK Holdings) is selling its assets (ie mainly OSK Investment Bank) to RHB in exchange for RHBCAP shares & cash.
(2) There will NOT be any capital repayment to distribute the RHBCAP shares & cash received. (Ong wants to have influence in the RHB boards, probably get elected to be a director.)
(3) They will be looking for new business & apply for exemption for PN17 from Bursa.
(4) The price drop sharply since Minority shareholders think that the deal is unfair without any capital repayment or special dividends. Some also worried of the PN17.

Read back on the earlier discussion in this thread & you will have a better understanding.

OSK remind me of what happened to BjToto many years ago.

It was around 2002, foreign funds was dumping BjToto shares & the price drop sharply after they discovered that there was a substantial sum of intercompany loan provided by BjToto to BjLand, the major shareholder of BjToto, which was under heavy debt. They thought that it was unfair since BjLand only had around 50% of BjToto shares, making full use of BjToto cash was unfair to minority shareholders. BjToto management was under pressure & they came out with a scheme to pay out bonus ICULS to all shareholders so that BjLand can sell this ICULS & repay the intercompany loan. It was fair since all shareholders received they fair shares of ICULS entitlement according to their shareholdings.

I remember this since I bought BjToto shares at low prices then, thinking that even if the intercompany loan was not repayed, being a cash cow with strong cash flow, BjToto would continue to pay good dividends. My bet was right, when the dust settled, BjToto shares start rising & it gave out a lot of capital repayments & special dividends to help BjLand repay its debt in the following few years. Now BjToto is the top performing stock in my portfolio!

I brought this up since there are similiarity between these 2 cases, both involved violation of minority shareholder rights & foreign funds selling. However, the reactions were different in that BjToto management actually admitted they were wrong by implementing a solution, whereas OSK management kept on defending its proposal & saying it has done nothing wrong.

In StarBiz 16/6/12 news, title ‘OSK may look at new core business’ (http://biz.thestar.com.my/news/story.asp?file=/2012/6/16/business/11492021&sec=business), Ong said “There's nothing wrong with the company; why should we pay out everything?” Why not? The fairest way is to distribute all sale proceeds to all shareholders according to their shareholdings, not letting the management taking full advantage of it.

Ong also said “The transaction, estimated to take another three months for completion,… On whether there would be a special dividend, Ong says that can be decided only after the deal is completed, possibly in another three months.” I think he is merely buying time. If OSK wanted to acquired new business, it need a lot of cash, it will probably use up all the cash from RHBCAP, how is it going to pay out the special dividend?

The OSK case is different from BjToto case in that it will have little earnings after the merger, even though it has a lot of assets, it is locked away from minority shareholders unless there is a capital repayment.

I hope there are more than 25% minority shareholders to vote against in the EGM!

There are many approvals they need to pass, they cannot rush it. See extract from the attachement of the original bursa announcement below.

--------------------------------------
9. APPROVALS REQUIRED
The Proposals are subject to, amongst others, the following approvals being obtained from the following authorities/parties:-
(i) the Minister of Finance (via BNM) for the proposed acquisition by RHBC and the proposed disposal by OSKH of the entire issued and paid-up share capital of OSKIB, which was obtained on 27 April 2012;
(ii) the Securities Commission Malaysia (“SC”) for the change in shareholders of OSKIB and the change of controller (as the case may be and to the extent applicable) for the companies within the OSKIB Group that hold capital markets and services licenses issued by the SC, which was obtained on 24 May 2012 subject to certain conditions;
(iii) the Labuan Financial Services Authority for the change in the ownership of OSKL, which was obtained on 27 March 2012;
(iv) the appropriate foreign governmental authorities in respect of OSKIB’s overseas business operations;
(v) the shareholders of OSKH at an extraordinary general meeting (“EGM”) to be convened;
(vi) the shareholders of RHBC at an EGM to be convened;
(vii) Bursa Securities for the listing of and quotation for the Consideration Shares on the Main Market of Bursa Securities; and
(viii) any other relevant approving authorities and/or parties, where required.
Barring any unforeseen circumstances, the submission to the relevant authorities will be made within three (3) months from the date of this announcement.

13. ESTIMATED TIMEFRAME FOR COMPLETION OF THE PROPOSED DISPOSAL
Barring any unforeseen circumstances and subject to all the requisite approvals being obtained (as set out in Section 9), the Proposed Disposal is expected to be completed in the fourth quarter of 2012.
-------------------------------------

For those who think of buying OSK, be careful, foreign funds could be selling. Looking at the 30 largest shareholdes of OSK from 2011 Annual Report agiain, I found names like
(a)'JP Morgan CLR Corp for Third Avenue Global Value Fund LP' holding 15.2M shares, 1.62%, 4th largest shareholder.
(b)'Morgan Stanley & Co. International PLC (Firm A/C)' holding 6.29M shares, 0.67%, 16th largest shareholder.
etc...
From past experiences, foreign funds hate unfair deal, they tend to sell on it. This may explain why the price drop so fast.

However, I also found out from Bursa announcements that one of the director of OSK is buying indirectly:
Mr. Wong Chong Kim, bought 200,000 shares at RM1.50 on 1/6/12 (indirectly bought by his son), bought 100,000 shares at RM1.40 on 4/6/12 (indirectly bought by his wife). However, he is not a major shareholder, only has 0.26% direct & 0.13% indirect shares.

There are a lot of uncertainty in OSK at the moment. You must be prepared to hold on to it for long term & prepared to average down if you want to buy. The whole merger will only be completed around 4th quarter this year, EGM should be held around then. The risk is high now, but the return may be high. 'High risk high return' means you can make a lot of money but you may also lose a lot of money.

I've been investing in OSK shares for a many years. My net cost (total buy - total sell - total net dividends) is low, only RM0.25 per remaining shares. Hence I can wait for the outcome of the proposal. I may or may not average down.

Good luck.

I did some research on Bursa Malaysia & Securities Commission web sites & found out that the actual vote required to pass the resolution involving MAJOR DISPOSAL OF ASSETS are 75% not 70% as I posted earlier.

http://www.bursamalaysia.com/website/bm/regulation/rules/listing_requirements/downloads/bm_mainchapter10.pdf
"
PART F(A) – MAJOR DISPOSAL OF ASSETS RESULTING IN LISTED CORPORATIONS NO LONGER SUITABLE FOR LISTING
10.11A Major Disposal
(1) A listed corporation which intends to undertake a Major Disposal must:
...
(d) convene a general meeting and obtain shareholder approval of at least 75% in value of the shareholders present and voting either in person or by proxy at the meeting for such Major Disposal.
"

Hence we only need 25% of minority shareholders to vote against it to disapprove the resolution in EGM.

From the OSK 2011 Annual report
(For those who did not received the Annual Report CD, it can be downloaded from http://announcements.bursamalaysia.com/EDMS/subweb.nsf/all/04D19C20EF014780482579C6002E9EDC/$File/OSK-AnnualReport2011%20(1.4MB).pdf),
on page 242, I found out that there were 29,054 shareholders where the 30 largest shareholders have total of 51.4% shares. So even if all these 30 largest shareholders are acting in concert with OLH (which I doubt so), there are around 48% small shareholders left to vote against the resolution. OLH has a total of 32.19% direct & indirect shares. (consistent with report in Business Times news on 29/5/12, http://www.btimes.com.my/articles/rhbee2/Article/
)

I think what OLH wants is to control the 10% RHB shares received through OSK. With this 10% shares he will be the 3rd largest shareholder of RHB and he will have influence in RHB board. If there is a capital repayment to distribute the RHB shares received, he will only has control of 3.2% of RHB shares.

With 10% hareholding, RHB is not even an associate company of OSK (>20% is associate company, >50% is subsidiary company) & OSK cannot consolidate the earnings of RHB into its earnings! It can only be classified under Investment in the balance sheet, only dividends from RHB can be classified as earnings! Hence after merger, OSK will be heavy in assets but very light in earnings. I doubt the remaining business and new business will be enough to compensate for the earnings loss from the old business disposed! The EPS will be very low & hence PER very high and the value of the heavy assets can only be unlocked if there is a capital repayment.

I took a look at the form of proxy in 2011 AGM, I found that we can appoint proxy to vote on behalf of us. You can appoint the Chairman of the Meeting as your proxy and indicate with an "X" in the appropriate space how you wish your proxy to vote. So for those small shareholders who are either unable or inconvenient to attend the EGM, all they need to do is to spend a little bit of time to fill up the proxy form and pay a little bit of postage to send out the form.

Please spread the words around & push the message through to all small shareholders, this may pressure OLH to change the unfair deal, the best outcome would be a full capital repayment (very slim chance), the 2nd best outcome would be cancellation of the merger. I think OSK has viable & promising business even without the merger.

WE MAY BE SMALL FISH BUT UNITED WE CAN BEAT THE BIG BAD SHARK!

OSK won't be PN17.

In the attachment in 28/5/12 bursa announcement, they said:
"The Board intends to maintain the listing status of OSKH after the Proposed Disposal and will apply to Bursa Securities for a waiver from classifying OSKH as an affected listed issuer under PN17 of the Listing Requirements as OSKH will continue to have other sustainable businesses in addition to its equity stake in RHBC."

In Business Times news on 29/5/12, they said:
"OSK Holdings Bhd plans to maintain its listed status and look for other businesses to embark on once it sells off its investment bank, its founder says.
Still, founder and major shareholder Ong Leong Huat, 67, points out that the group will still have some other businesses remaining like property, property-management and money-lending.
"Along the way, my board and I - which also comprise a lot of good business people - will look at what other businesses we can embark on."
http://www.btimes.com.my/articles/rhbee2/Article/

However, the deal is still unfair for minority shareholders since there is no capital repayment! I think we should vote against the resolution in the upcoming EGM!

Bursa has changed the rule to better protect the rights of minority shareholders, now they need more than 70% votes to pass resolution involving sale of company assets. If minority shareholders with more than 30% shares can unite & vote against it, then the whole merger deal will be off! This will teach OLH a lesson & let him know that "BETTER DEAL FOR MINORITY SHAREHOLDERS OR NO DEAL!"

http://biz.thestar.com.my/news/story.asp?file=/2012/5/29/business/11375310&sec=business

5th Last paragraph:
"Ong also said OSK would remain a listed entity after the disposal of OSK IB, but stayed mum on its future direction. He added that OSK was not considering a capital repayment to its shareholders for now."

If you read the attachments carefully, there is NO capital repayment to distribute the RHB shares & cash received, they are going to keep the listing status of OSK & looking to acquire new business. This is only good for major shareholders. What in it for small shareholders like us? NOTHING!