The share price movements speak volume about the validity of my concerns stated earlier. Share price has grown detached from the company’s financials.

Excellent financials. But the biggest worries are management integrity, there being no obvious controlling shareholders and the risks of the company being stripped bare in the future.

A daylight robbery.

When a company gets suspended, you lose everything, regardless of your share purchase cost.

Evergreen makes RM100m plus free cash flow a year. It’s going to pay back all it’s borrowings this year, if it wants to.

Don’t worry, OTB has a target price of RM1.16. Hahaha

Cost pressure has been mounting especially after Russia started invading Ukraine. Homeriz may not be able to pass down all cost increases to its customers. The next two quarters’ results should be subdued.

The controlling shareholders again sold more than bought the company’s shares, even at around 45sen, a lowish price level. The company has stopped paying dividends for 3 quarters by now, although it has RM115m net cash. The management asked that shareholders invest in this company for the long run, but have been punishing them with both zero dividend and collapse in the company’s market capitalisation. What kind of signals the controlling shareholders are giving to the market? They are essentially asking the shareholders to bear the pain or otherwise sell off their shares.

A good turnaround and with RM115m net cash, shareholders expect a good final dividend. In question is whether they can expect sustained recovery in profits. Assuming in 2022, the company makes RM29m net profits a year, RM10m capex, and pays RM4m income tax, it will generate RM44m or RM0.077 additional cash a share. This makes the current valuation attractive.

For 3 quarters at the height of covid 19, the company did well in selling face shields and polymer products, making RM22m net profits in total. As the covid fades, the past 2 quarters have seen dismal results. The company now struggles to make any net profits. The high depreciation charge is partly offset by its need to continually spend on capex. With breakeven results, net cash flow generated is around RM5m to RM10m. It will take the company at least 20 years to pay down its RM200m net debt. Good luck.

Net debt of the company will double to RM200m. This is a cornered stock, kept artificially at a relatively high price of RM1.30. When the banker leaves, the fall will be severe. Banker normally leaves when there are other big buyers coming in or when the fundamentals of the company deteriorate too much, relative to the prevailing market price. Don’t be lulled by the seeming stability of its share price at the current elevated level.

Clearly minority shareholders should lodge a police report against the Japanese ceo for handing out RM102m cash to Yoshinoya for a 28% stake in a struggling biz.

Evergreen sudah sampai 56sen loh.

Mieco moved up from the lowest of 41sen in past 52 weeks to 59sen, Evergreen moved up from 34sen to 50.5sen, Hevea rose from 41.5sen to 45sen only. There’s no reason it does not catch up and move to 60sen to keep up with its peers now.

When the steel bull price is over, how will it repay its RM300m loan? More private placements and loan rescheduling are likely in years to come.

Look at the biz before COVID for the past 20 years, it had very minimal biz and profits. COVID will one day be gone, what will the biz n profits be like after that? Maybe just RM10m net profit after tax a year, as average selling price for formers will plunge, together with glove.

Dividend is stopped.

When price went up, Chartists told you to buy because of bullish breakout. When price is continuing falling now by 30% off peak, they would tell you chart still looks ok and they will hold till next year. Laugh die me.

For those who trade on average more than RM5m to RM30m a year, which platform is reliable and cheapest in terms of brokerage fee?

From 2022 onwards, bursa will only see mostly retail players trading. Funds and big players will basically not trade much. Bursa’s total market volume will come down by half. Bursa should limit down tomorrow unless a U turn on stamp duty is expected by the market.

Results of Bursa from 1.1.2022 onwards will drop materially because of the 0.15% stamp duty without cap. Next year Institutional, foreign and big players will trade much less on Bursa due to this more than doubling of transaction cost for big transactions on Bursa.

Kyy used last two quarters eps, annualised it and then projected it into perpetuity as though the company he was pumping will stay at the height of its earnings power forever. To win your trust, he gave you discount, and the price he targets is still 100% or more from the current price.

He used this kindergarten trick again and again. Steel is a highly cyclical industry lah and when the downtown strikes it can go on making losses year after year as proven by past record.

Smart investors continuously assess what its maintainable eps may be for the next 10 years, having factored in the inevitable future steel downturn and prescribe a fair value accordingly using discounted cashflow method.

How many articles Kyy wanna write to promote one stock? what a pathetic manipulator! just sell all your assets and buy more hiap teck lah since you say it will reach RM1.16.

Gantung Sampath mati.

Net cash plummeted to unattractive level as dividends were maintained though earnings plunged. Consequently dividend was cut 25% in the latest quarter. Target price is cut by 25% to 70sen.

Since before Kyy goreng this share years ago, I already warned that JAKS manufactured paper profits, to lure innocent investors subscribe for their additional shares by paying them cash- time after time, This trick continues till today.

Going sub-40sen unless the directors restore dividend payments in next quarterly results announcement.

The company managed to achieve a positive RM3m operating cash flow for the latest quarter, despite a one-month FMCO. In the coming quarterly reporting in Nov 2021, there would be a 1.5 months of FMCO. I expect a loss after tax of RM7m, which makes for a break-even at operating cash flow level (ie add back depreciation expense).

That means the company did not bleed from its cash reserves and FMCO merely wiped out its cash profits earned during the period. The company still has a net cash balance of RM100m, post FMCO.

To stop paying dividend quarterly of RM3m when it easily can is hugely disappointing as some investors bought the company for its dividend. Yes, some investors will take the pessimism as lack of confidence by the management in tackling challenges.

All said, for the quarter beginning 1 Oct, operating environment should be substantially back to normal, unaffected by FMCO. The company should be able to return to profit after tax from then on.

Privatisation is a wonderful weapon for major shareholders to cash in big time on unbelieving minority shareholders who threw the shares like timebombs. But first they themselves have to believe they are not throwing real cash over unreal accounting figures.

Knm’s loan to buy borsig in 2008 still sits in today’s books. Net debt of rm1b plus renders the current market valuation of rm1b rich.

Net debt is RM265m, sendiri fikir loh.

Just a glorified pasar-malam reseller on a national scale. It won’t grow forever. Sell all while the valuation is so rich.

My guess: RM20m net loss for FYE 2021.

5.5sen dividend a year. Operating normally throughout mco and expanding with new products coming on stream. RM1.3 is fair value for 4.2% yield.

2 months without production from June to July, results will be very bad.

A cornered stock.

He gave you accounting profits, you gave him cash.

Price divided by price, you get a ratio or % if multiplied by 100. Don’t make this kind of kindergarten mistake lah if you wanna convince others to buy your stocks.

It’s clear who’s under fire. Just collect more if you love this high-net-debt company.

If the controlling shareholder is clean, he should take the company private the lower the share price gets. Then collect all the doubtful receivables in billions if they are indeed genuine. He can make a few billion ringgit gains in just a few months. Why need to argue and sue kpmg? Let them qualify the accounts lah. Just collect back all receivables on books loh and everything will look perfect again.

Appointing EY is buying time as is change in accounting period. EY will not do their work any differently than kpmg in terms of level of professionalism. In doubt are very fundamental issues which likely makes the company worthless. Those who averaged down will suffer much more when the company falls to RM0.30 or less in due course. Just my 2 cent.

I never liked Yinson but their responses are well written and commendable to clear the air. It shows professionalism from their management that views integrity seriously- apparently. This is not at all to suggest its current share price is undervalued.

If only Serbak could do the same as Yinson in responding to valid queries from kpmg and all other stakeholders.

This is the most useful article ever from Kyy. Thanks for sharing.

Net debt RM230m, high. Profits went to high Receivables. Hardly paid dividend. Sendiri fikir loh.

Serba mana ada money to pay back borrowings, now that the skeleton has fallen out of its cabinet.

Those believing the assets are 50%-80% fake will use this self-calculated substance to determine it’s technically insolvent. Those who don’t believe will have to wait for the next set of audited accounts, currently delayed, to believe. Big impairment has to happen first which drives equity into negative territory, which means technical insolvency. In the interim, there will be ding dong in share prices, with clear downward pressure.

Liabilities were 100% real; Assets are 50-80% fake, inflated mainly from past recorded profits. That leaves a picture of a company technically insolvent, looking for cash injection now. That bankers, rating agency and kwsp were all sleeping all along, happily assuming the accounting figures were materially correct is so disappointing. You buy now you pay for nothing- zero value. Just my 2 sen.

The solution is dissolution of the company. When figures are so materially inflated or fake, the company is worth nothing. We are gonna see RM0.15-0.30 a share for all 3 companies of serba, kpower and scib.

First limit down, two more to come.

Essential services, factories run as usual.