How to remove Lin from board of directors without SGM:

(a) use magic
(b) use the power of dream
(c) wish at a wishing well
(d) scold him hard in this thread
(e) all of the above

Possible milestones before delisting:

(1) Still no Monthly Status Update by end of Aug.
(2) Again, no Monthly Status Update by end of Sep.
(3) No Annual Report by end of Oct.

Delisting procedures will start after these.

3 May announcement:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5082145

“… the stipulated timeframe i.e. 30 April 2016, …”

“… if a listed issuer fails to issue the outstanding financial statements within 6 months from the expiry of the relevant timeframes, …; de-listing procedures shall be commenced against such listed issuer.”

Timeframe = 30 April 2016, + 6 months = end of Oct. Delisting procedures start after that.

As I expected, there is no SGM by 23 Aug deadline. SGM is no longer possible. To those who are dreaming of takeover: WAKE UP!

23 May announcement on SGM:
NOTICE OF REQUISITION TO CONVENE A SPECIAL GENERAL MEETING
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5100229

“… if the directors do not within twenty-one days from the date of the deposit of the requisition proceed duly to convene a meeting, the requisitionists, …, may themselves convene a meeting, but any meeting so convened shall not be held after the expiration of three months from the said date.”

After 21 days from requisition, Paramjit may convene the SGM by himself. The SGM must be held not later than 3 months from the requisition date (i.e. not later than 23 Aug).

Possible reasons why Paramjit didn’t convene SGM:
(1) Didn’t want to pay for the expenses of the SGM.
(2) Worried that Lin might not recognize the SGM nor release control if Paramjit won.
(3) Worried that the company was already an empty shell where most assets were already siphoned off by Lin.

Lin may not want to recognize the SGM nor release control of the company. If it is a Malaysian company, you may get a court order, get police escort & go kick out the old management. However, MSports business is in China, what can you do with M’sian court order & police?

Perhaps Paramjit & Erwin will be remembered as ‘the Big Time Losers who bet big on China stock’. :D

SGM is Special General Meeting (= EGM, Extraordinary General Meeting).

Let's see if Paramjit can convene SGM by the 23 Aug deadline. I will comment later.

Perhaps Lin likes durian so much that he is waiting for durian runtuh. Perhaps delisting is like durian runtuh to Lin. If he waits long enough, durian will drop. :D

The company is not doing anything, how to resume trading?

I said 'If', can't you read?

The possibility of SGM ends on 23 Aug (3 months from requisition date). I will write about it in more details after that date.

I pity the shareholders. Just don't like the Stock Promoters.

Lin doesn’t need to buy back. All he has to do is do nothing until MSports is delisted. Then he can run all MSports subsidiaries as private companies. The fact that there is no announcement after 9 Jun supports this possibility.

Posted by tintan > Aug 10, 2016 09:38 AM
Msport is on the verge of taking over. So if listed, will be big jump. cos Mr Lin & his cohort will buy back

If someone tells you he has $300M in the bank but he can’t produce any proof, would you believe him? If he continues to say “lend me $1M so that I can pay the taxes & expenses to withdraw this cash, I will give you 10% of the cash.” You better run!

红筹疑云．何时见日
http://www.sinchew.com.my/node/1554635/%E7%BA%A2%E7%AD%B9%E7%96%91%E4%BA%91%EF%BC%8E%E4%BD%95%E6%97%B6%E8%A7%81%E6%97%A5

Maxwell’s actual loss 30% higher than first reported; PN17 triggered
http://www.thestar.com.my/business/business-news/2016/08/02/maxwells-actual-loss-30pc-higher-than-first-reported-and-enters-pn17/

“Baker Tilly said, the management of Maxwell’s subsidiary Jinjiang Zhenxing Shoes & Plastics Co Ltd was unable to provide the relevant information and supporting documents on its placement of RM337.21mil with asset management company Jinjiang Jin Chuang Private Capital Management Co Ltd (Jin Chuang).”

In other words, the cash is most likely fake!

If you check the Bursa page of MSports announcements, you will see that it is not updated since 9 Jun. http://www.bursamalaysia.com/market/listed-companies/company-announcements/#/?category=all&sub_category=all&alphabetical=All&company=5150

It seems like the management has given up & letting it slips toward delisting. They have not published any Monthly Status Update after May. Probably Lin prefers it to be delisted so that he can run it as a private company. Then he doesn’t have to care about Bursa rules & minority shareholders.

Yes, the misery shall end at the end of Oct (6 months from end Apr) due to delisting procedure. The possibility of SGM also ends on 23 Aug (3 months from requisition date). :D

If someone tells you he has $300M in the bank but he can’t produce any proof, would you believe him?

If he continues to say “lend me $1M so that I can pay the taxes & expenses to withdraw this cash, I will give you 10% of the cash.” You better run!

However, I feel that the stock promoters here will probably say “OK” & then come to this thread & brag “Hey guys, I made a very good deal, get $30M out of $1M.” :D

Maxwell’s actual loss 30% higher than first reported; PN17 triggered
http://www.thestar.com.my/business/business-news/2016/08/02/maxwells-actual-loss-30pc-higher-than-first-reported-and-enters-pn17/

“Baker Tilly said, the management of Maxwell’s subsidiary Jinjiang Zhenxing Shoes & Plastics Co Ltd was unable to provide the relevant information and supporting documents on its placement of RM337.21mil with asset management company Jinjiang Jin Chuang Private Capital Management Co Ltd (Jin Chuang).”

In other words, the cash is probably fake. Very likely it is the same for MSports.

When asked for photographs of billboards erected, the company used Adobe Photoshop to create images. What a joke. :D

Auditor unable to verify Maxwell unit’s RM64.6mil ad spending
http://www.thestar.com.my/business/business-news/2016/07/20/auditor-unable-to-verify-maxwell-units-rm65mil-ad-spending/

According to the executive summary, Ferrier Hodgson MH had launched a search of the six advertising contractors (similar to the company searches made with the Companies Commission of Malaysia) and found that two of these companies “were not in existence” while one was no longer operational.

Ferrier Hodgson MH asked Maxwell International chief financial officer Tan Swee Song for actual on-site photographs of all the 390 billboards erected at the various sites before they were dismantled.

Tan, by email, forwarded 53 jpeg files which purportedly showed images of billboards of the relevant products being advertised.

“We had further conducted examination on the JPEG files particularly with respect to the properties and details of each of the JPEG files which suggests that the JPEG files have been created under Adobe Photoshop programme,” Ferrier Hodgson said.

This is a public forum. Anybody can post comments here, whether it is positive or negative, as long as they stick to the rules. This is called FREEDOM OF SPEECH!

No Paramjit, no SGM, no annual report, no agent in Malaysia, no Company Secretary, no Resident Representative in Bermuda, no audit committee, no monthly status update, no trading. How are the stock promoters going to promote this stock? :D

MSports is not on Bursa Regulated Short Selling (RSS) list! Nobody can short MSports.

Bursa Approved Short Selling Companies
http://klse.i3investor.com/blogs/benhctan/29089.jsp

Regulated Short Selling (RSS) On Bursa Malaysia
http://1-million-dollar-blog.com/regulated-short-selling-rss-on-bursa-malaysia

PDF from Bursa
http://www.bursamalaysia.com/misc/system/assets/1809/RSS_approved_securities.pdf

The selling before suspension is from smart people who cut loss based on calculated risk that MSports may remain in suspension until delisting. From the recent development (see my earlier comments in http://klse.i3investor.com/servlets/cube/post/purebear.jsp), this possibility is getting higher & higher. :D

MSports did not issue a ‘Monthly status update of issuance of Annual Report …’ on 30 Jun. It issued one on 31 May with minimum information (http://www.bursamalaysia.com/market/listed-companies/company-announcements/5111753) & now stops. Its ‘comrade’ Maxwell has issued both on 31 May and 30 Jun.

Why MSports didn’t bother to issue a status update? It is already > 2 months since 25 Apr when it said the External Auditors need more time to verify expenditure incurred and bank balances. 2 months is a long time, most of the works should have been completed. However, they don’t even dare to issue an update! Very likely there are more problems with the accounting rather than simply ‘auditors required more time’.

If these status update are requirements of Bursa, then MSports will be reprimand by Bursa later. Perhaps fine? Perhaps earlier delisting if continues to violate Bursa rules? Hahaha, omen of more bad things to come….

P.S. At lease Maxwell issue monthly status updates with more information than MSports. See the following links to compare them with the simple & minimum information one issued by MSports.
31 May update: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5111321
30 Jun update: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5137529

Stay tuned … more bad news coming … hehehe.

Recent puzzling development (mass resignation?):

(1) 27 May 2016: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5107293
Codan Services Limited had notified the Bermuda Registrar of Companies of its resignation as Assistant Secretary and Resident Representative of the Company effective from 23 April 2016.

(2) 31 May 2016: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5111757
Following the resignation of Codan Services Limited (“Codan”) as Assistant Secretary and Resident Representative of Multi Sports Holdings Ltd, the Company had breached Section 130 of the Bermuda Companies Act, 1981 (“the Act”): Every exempted company shall have … a secretary that is - … resident in Bermuda …

(3) 9 June 2016: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5120373
… received a letter dated 8 June 2016 from Secretarius Services Sdn Bhd (“SSSB”) regarding its resignation of Secretary on 8 June 2016. Following the resignation of SSSB, the office of secretary shall be left vacant.

(4) 9 June 2016: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5120377
… on 8 June 2016 received a letter dated 8 June 2016 from PFA Corporate Consultants Sdn Bhd (“PFACC”) regarding its resignation as an agent of MSports in Malaysia (“Agent”) on 8 June 2016 …

These are in addition to the resignation of 2 of the members of the Audit Committee on 20/4/16 (see my comment on 26/4/16).

These are bad omens of something bad is brewing. Before an old house collapse, you will see the bits & pieces falling.

https://www.youtube.com/watch?v=tbU3zdAgiX8

All I have to do is dream
Dream, dream, dream
Dream, dream, dream, dream
Dream, dream, dream, dream
Dream

Quarterly report is unaudited. Any bullshit can go in there.
The most important is still the external audit, esp on the bank balance.

Stock promoters must be desperate to promote this stock since they are trapped. :D

Usually stock promoters promote a stock after they bought it, hoping that more innocent people will believe them, then they sell higher to make a profit.

Unfortunately, in this case, stock promoters also got trapped here & they have no choice but to continue promoting until more ‘greater fools’ believe them. LOL.

Lin = 千王之王
Paramjit is fighting a losing battle.
:D

What really matters is whether there are any accounting frauds. Only Lin knows best.

MSports could be like an apple eaten by worms from the inside. Whatever left is just the beautiful skin painted by creative accounting.

If there were any breach of trust, Lin probably ready to chow lor (run away), he is probably busy transferring all cash & liquid assets of MSports to his Swiss account. Even buildings can be mortgaged to the banks in return for cash for transferring. By the time Paramjit take over the Board of directors, it is only an empty shell. :D

In a perfect world, everybody is very honest, accounting statements are fully trustable (only naive people live in this kind of world).

In the real world, there are many smart & greedy people who are good at creative accounting that is difficult to catch!

The 10 worst corporate accounting scandals of all time.
http://www.accounting-degree.org/scandals/

When people are desperate, they will believe in anything! LOL.

Takeover an empty shell?

"Based on Bursa’s listing requirements, a substantial shareholder needs to give notice on their acquisitions or disposals two weeks from the day they buy or sell the shares."
http://www.thestar.com.my/business/business-news/2016/05/07/koon-in-the-spotlight-over-untimely-disclosures/

If Paramjit or Erwin started selling from 26 Apr (day after first suspension announcement), they have up to 2 weeks to make announcement which is 10 May (the suspension day). By the time you know, it is already too late!

If I'm Paramjit or Erwin, I would sell quietly before I reports on the maximum allowable time.

麦斯威和华运交不出年报 龙筹股山雨欲来？
http://www.nanyang.com/node/759723?tid=462

卢文豪认为，龙筹股没有提供强劲基本面证据，可以推高投资者的信心，反而加深市场对这类股的疑虑，特别是账目的真实性。

他说，龙筹股在表面上交出亮眼的业绩，且拥有庞大的现金，但却仍需要通过发行附加股集资，更重要的是，股息也不高，甚至没有派发股息，这令人不得不怀疑他们的账目。

此外，InterPacific研究主管冯廷秀则表示，一向都不鼓励投资者买龙筹股，因为这些公司的营运不在大马，而分析员也不常到中国了解这些公司的发展进度。

“中国经济变化太快，我们难以完全掌握这些公司的运作和发展。”

卢文豪认为，龙筹股在大马上市越久，就会浮现越多问题，所以建议投资者避开龙筹股。

“我认为，一般上在这些龙筹股上市两年后，假设股价持续下跌，而且出现更多问题，投资者最好不要碰，以免烧伤手。”

Countdown to SUSPENSION (10/5/16): T – 4 trading days

Selling pressure is getting more intense as we are approaching the suspension day. Maxwell, the comrade of MSports, which is also having the same suspension on the same day, trades at 2.5 sen now.

If the accounting cannot be trusted then whatever ROIC, ROE, PER, NTA, P/BV, Net cash, are all junks!

One of the important investment decisions is the credibility of the management. We are passive investors, if the management cannot be trusted then no point investing in that company!

Countdown to SUSPENSION (10/5/16): T – 5 trading days

“… has failed to submit its Annual Report that includes the annual audited financial statements together with the auditors' and directors' reports in respect of the financial year ended 31 December 2015 ("AR 2015") … within the stipulated timeframe i.e. 30 April 2016 …”, “the trading in the above Company's securities will be suspended with effect from 9.00 am, Tuesday, 10 May 2016 …”
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5082145

Whether you want to sell (to cut loss) or buy (for those brave hearts who believe in miracles), you better act fast since time is running out, tick tick tick ...

The management targeted 2 months after end Apr to release AR, hence it may be suspended for at least 2 months.

Worst case scenario is the external auditors discover the accounting fraud & hence AR cannot be released 6 months after end Apr then de-listing procedures shall be commenced against MSPORTS

“MSPORTS targets to issue and submit its AR to Bursa Securities not later than 2 months from 30 April 2016.”, “… the suspension will be effected on 10 May 2016.”, “… if MSPORTS fails to issue the AR within 6 months from the expiry of the Timeframe, in addition to any enforcement action that Bursa Securities may take, de-listing procedures shall be commenced against MSPORTS.”
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5068249

Victims of MSports: “F**king Lin, we want to eat your flesh & drink your blood, you should go to jail for life imprisonment.”

Brave hearts who believe in miracles: “Oh Savior Lin, we are kneeling before you, please save us & deliver us to the promised land (Holland?).”

Emotionally cutting loss is a difficult thing to do, but sometimes it has to be done. When most of the evidences point to high probability of eventual losses, cut loss will save you from further losses.

A gambler who loses money in a casino will try to win back his losses by betting more due to his emotion of not wanting to lose money. However, the likely outcome is he loses all his money.

A thought came to my mind when I was reading news of phone/internet scams recently. There are similarities between MSports & phone/internet scams.

In a phone scams, the scammer use a prize as a bait. First you were told that you had won a big prize. Then they asked for handling fees, service fees, tax to be paid, etc, before you could get the prize. Out of greed, the victims paid one fees after another believing that he/she will eventually get the prize. However, when they ran out of money, the scammer stopped contacting them then only they realized that it is a scam.

For MSports, the prize is the high net cash in the balance sheet. The unsuspecting investors bought again & again when the stock price kept dropping believing that they will eventually get rewarded. The story of MSports has not ended & I would pity those loyal investors if it ends up like a phone scam.

Desperate people have desperate illusions.

Chinaboleh, Why I shouldn't be here? Is it your father's forum? Is it a forum for stock promoters only?

Countdown to SUSPENSION (10/5/16): T – 6 trading days

Cut loss to salvage whatever left while you still can!

The management targeted 2 months after end Apr to release AR, hence it may be suspended for at least 2 months.

Worst case scenario is the external auditors found the accounting fraud & hence AR cannot be release 6 months after end Apr then de-listing procedures shall be commenced against MSPORTS

“MSPORTS targets to issue and submit its AR to Bursa Securities not later than 2 months from 30 April 2016.”, “… the suspension will be effected on 10 May 2016.”, “… if MSPORTS fails to issue the AR within 6 months from the expiry of the Timeframe, in addition to any enforcement action that Bursa Securities may take, de-listing procedures shall be commenced against MSPORTS.”
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5068249

25/4/16: “… additional works to be performed by the External Auditors of the Company, RT LLP to verify expenditure incurred and bank balances. Deloitte & Touche, the Taiwan External Auditors is also unable to review works in line with Taiwan Accounting Standard Requirements.”
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5068249

Independent and Non Executive directors MR ANG WEI CHUAN (also Chairman of Audit Committee) & MR BERNARD TAN CHIN TEIK (Member of Audit Committee) resigned on 20/4/16.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5064097
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5064085

These 2 events could be related. It is possible that the independent director / Audit committee members refuse to cooperate with the management in accounting fraud & hence they resign.

Why the ESOS dealings were so suspicious:

(1) When Lin exercised the ESOS in 13 November 2015, the exercise price was RM0.11 but the market prices was < RM0.095 from 23/10/15 onward. Only an idiot would do that.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4923009

(2) The ESOS (Date of offer: 19 October 2015) expires on 22 September 2020. Why exercised so soon? Sane people would wait until the market price rise above the exercise price before they exercise it.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4896445

(3) Why sell all the ESOS at average 4.6 sen so soon at 29 January 2016 in Open Market, around 2.5 months after exercising it?
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4990865
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4990845

(4) From listing announcement, almost all the ESOS are exercised & listed on 17/11/15. Why almost all eligible employees exercised ESOS when market price is lower? (Total 77.622 M ESOS shares exercised at RM0.11 -> RM8.54 million injected into MSports.) (Lin’s parts are 7.762M + 3.811M (daughter’s) = 11.573M shares.)
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4919957

All these are very puzzling, no plausible explanation unless you make an assumption:
‘Someone cooked up the book, the accounting is not right & most of the cash is fake.’

Then everything can be explained:

Lin try to inject cash into MSports by exercising ESOS & perhaps also hoping for some profit if price rises. All the ESOS from employees could be paid by him, i.e. he could be using the accounts of the employees & paid for the exercise of the ESOS. (Right issues is impossible since market price is lower than the Par Value of the share (2.5 cent USD). The issue price must not be lower than Par value.)

When the market price drop further, he cut loss & sell since he has no confidence with the company. He knew that most of the assets & cash are cooked up & simply not really there.

Another possible scenario:
If Lin sells all his shares then other substantial shareholder will take over the company & they will conduct a real audit & they may find out the discrepancy in accounting & Lin may go to jail!

One possible scenario is:
All the cash is fake, it is all cooked up. Directors bought ESOS to inject cash into the company to keep it going or to cover up. Now they sell at 4.6 sen since they know the company is in trouble & want to get some cash back. (From announcement it is 'Disposal in Open Market')