i am not encouraging any one to buy.It is purely flashing of news which I obtain from sources like newspaper, blogs etc

Actually I am really laughing now out of my lungs when you say that this counter is like egg on the throne. We come here to take risk hoping good may happen to this counter, susah mahu cari makan boss,

KUALA LUMPUR: Poultry company Lay Hong Bhd saw 10 million of its shares traded off-market at an average price of 78 sen each.

This was five sen below its Thursday closing price of 82 sen.

Stock market data showed that based on its paid-up of 608.75 million shares, the stake accounted for 1.64%.

At 11.12am, the share price was down 0.5 sen to 82 sen.

The FBM KLCI was up 4.77 points or 0.29% to 1,678.25. Turnover was 778.84 million shares valued at RM471.20mil. There were 321 gainers, 269 losers and 380 counters unchanged.

In late December, Lay Hong had expressed confidence in a significant rise in performance for the financial year ending March 31, 2019 (FY19).

This will be from a new joint-venture (JV) plant with Japan NH Foods Ltd (NHF) which is expected to start operations by 2018.

Work on the new plant in Kapar, Selangor, was slated to start in the first quarter of 2017

The plant under NHF Manufacturing Sdn Bhd (NHFM), a new JV company set up in May 2016, is set to produce 2,000 tonnes of processed food per month.

NHFM is 49% owned by Lay Hong and 51% by Japan NHF.

Wherever you go, you always say negative, but yet the stock price will go up. An example- Reach Energy. Now you are here and still negative. So i take this omen to be good and the price shall shoot up contrary to your comment. hi hi hi

Today it should trend higher to 22cents.

Don't know what Kajang tip to do with this. Pls inkle further NorthernStar

Yes, they have shown 82% cut on their pledge

NorthernStar, pls update any news.

Not yet, still got hope.

This article first appeared in The Edge Malaysia Weekly, on January 16 - 22, 2017.


FOOL me once, shame on you; fool me twice, shame on me. In most cases, investors have only themselves to blame when market manipulators, front runners and insiders make hefty gains at their expense.

At last count, 808 public companies were listed on the Main Market of Bursa Malaysia, of which 17 have been classified as Practice Note 17 (PN17) companies. The shareholders are hoping for some white knight to emerge and rescue the beleaguered companies from financial distress.

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But happy endings are hard to come by. Over the years, numerous ambitious plans — from corporate turnarounds to restructuring exercises — have not come to fruition or materialised.

A recent example is Kuantan Flour Mills Bhd (KFM), which disclosed to Bursa Malaysia on Dec 13 last year that Felcra Bhd had expressed an interest in a reverse takeover (RTO), only to find out two days later that the latter had retracted its interest.

The share price of the loss-making flour miller doubled from four sen to eight sen on the day the proposed RTO was announced and continued to climb on Dec 14, reaching 24.5 sen, a 206% increase from eight sen. Following the retraction, the share price tumbled back to eight sen.

But the story does not end there. Two weeks later, KFM said it had signed a memorandum of understanding with Lotus Essential Sdn Bhd on Dec 27 to carry out flour-milling activities and trading of flour and food-related products. Now, many investors are wondering if lightning will strike the same place twice.

According to Datin Ho Choy Meng, president of the Malaysian Investors’ Association (MIA), the share prices of PN17 companies will shoot up when potential suitors appear, allowing many patient shareholders to quickly unload their shares. But others will rush in, snared by hype about the prospects of a turnaround and quick profit.

“When the proposed takeover does not materialise, the new shareholders end up with a load of near-worthless shares. It is a zero-sum game. Thus, it is not a good idea to chase after PN17 companies at the first sniff of a rescue,” she tells The Edge.

Looking at it from a wider perspective, the roller-coaster ride of KFM’s shares last month raises the question of whether PN17 companies should be given more time to seek a new lease of life.

Some quarters opine that Bursa Malaysia should take harsher action against PN17 companies that repeatedly make fruitless announcements. A counter argument is that the stock exchange should not deny them a chance of revival by forcing them to delist.

Note that most companies fall into PN17 status because their shareholders’ funds are less than 25% of their paid-up capital, winding-up action is being taken against their subsidiaries or associated companies, or their auditors have expressed a disclaimer opinion.

Generally, a PN17 issuer is required to submit a regularisation plan to the Securities Commission Malaysia for approval within 12 months of the date of admission into PN17. But companies can request an extension.

Ho points out that as long as the PN17 companies have not been delisted, their listing status still has value. Delisting signifies the death of these companies, and shareholders will lose every sen of their investments.

“PN17 companies welcome sincere suitors with viable business plans to turn them around. But we would not want individuals or syndicates to come in with the sole intention to ramp and dump, cancelling their proposal with a sheet of paper declaring their withdrawal,” she says.

To deter unsavoury incidents, Ho suggests that Bursa Malaysia make it mandatory for potential white knights to pay earnest money into a special account managed by the authorities before declaring their interest.

“The earnest money should be at least 10% of the total initial paid-up capital of the PN17 company, and not the depressed share value.

Just like buying a property, the deposit will be forfeited should the buyer cancel the sale unilaterally. Make it non-interest bearing,” she says.

If the rescue plan proceeds as intended, the initial deposit would become part of the purchase price and be released.

“This may give a lifeline to PN17 companies to get out of their financial predicament while effectively checking the dishonourable intentions of criminal syndicates or even company directors,” says Ho.

On the recent Felcra and KFM episode, Ho urges the regulatory authorities to sift through the recent trading records of the directors and their associates.

“They should tell the public if anyone has engaged in any front-running, insider trading or market manipulation,” she stresses.

She, however, lauds the timely act of KFM board in revealing to Bursa Felcra’s interest in the group.

“As a responsible corporate entity, material information received should be disclosed, but if there is an intention to mislead the investing public, then it is a serious.

And today it slided to 17.5cents

So, we pray that the deal will take off.

If this deal or to say the only deal does not materialise, the consequence will serious, Company will not get an extension for the submission of revamp plan, which will lead to capital reduction.

Whatever is mentioned here is sweet to hear, However, there is no confirmation so far that the deal involving KFM and Lotus Essential S/B shall be inked or not.

Very sure that Felcra have no further plans ahead to RTO KFM. Lotus is just a SDN BHD. Can RTO ya?

Hopeful, it SHALL Happen.

Lotus S/B, a starch and coal company

Northen Star, how are u so certain of the RTO? 1 or 2 days is already CNY, tmrow market half day some more

What is TKO boss?

someone in Emir is digging for Reach from Oct 16. They just have to log in their profit. hahaha

Jackpot to strike soon

Thanks bro

do anyone here know when is the next QA results to be announced?

Amen

Your explanation is quite reasonable, smartrader2020

Yes, you are true Charles. The roadblock is removed suddenly. Ha ha

Terrible roadblock for warrant to move up from 11cents onward.

last thursday

i am sorry. i am not a subscriber of the magazine. it is good that you can buy a copy, thanks

Vsolar grapples with more hiccups- Focus Malaysia

Thanks alot Mr. Tan and Fauzan.

Thank you Mr.Tan. Pls update further. Your efforts are appreciated

Gentlemen who are attending the EGM, kindly update the status during the EGM. My sincere request. I am just a warrant holder. Thanks

From now, it is very obvious that QA will be voted YES. So why worry about warrants.Go ahead and buy.

each Energy Bhd - Reaching new heights
Author: kltrader | Publish date: Mon, 24 Oct 2016, 10:30 AM

Highlights
More on QA. The recently released circular revealed more details on the proposal (submitted earlier) to acquire 60% stake in Palaenotol B.V., holding company of Emir-Oil, and 60% of shareholders loan for a sum of US$154.9m. Voting by shareholders would be done in the EGM on 4th November 2016.
Emir-oil, balanced portfolio with high quality, high API crude. Emir-oil current possesses 4 producing fields coupled with 2 development fields and 6 drillable prospects, pointing to high potential growth in pipeline of reserves. In addition, it also produces high-value light and sweet crude oil and possesses high condensate yield in one of its producing fields, complemented with existing infrastructure and gas evacuation facilities in place.
Acquisition valuation attractive. Weak oil market has served the company well as it enables the company to be able to acquire Emir oil at bargain pricing with no abandonment charges in midterm . Excluding working capital adjustments, implied price/bbl is at US$2.9/boe, at the lower end of Kazakhstan transacted prices. The deal was also done when oil prices are at USD30-40/bbl range, 1Q16 this year.
Significant upside potential. Out of 70m bbls of 2P reserves, 29.3m bbls are developed reserves of which more than half of it is producing while the remaining is shut-in, representing low hanging fruit for the company.In addition, the company has also identified 3 major value-adding measures which require minimal CAPEX: (i) LPG extraction facility (already completed by MIEH) (ii) transportation tariff reduction of USD2/bbl through pipeline tie-in (iii) well cost reduction of US$1.95m/development well.
Investing in CPF to remove bottleneck. Currently, the field’s production is limited to a ceiling of 6,548 bbls/day due to constraint of its leased oil processing facility. Therefore, its Vendor in the QA, MIEH, has invested in a new Central Processing Facility (“CPF”). 1st Phase would provide processing capacity of 12,000 bbls/day while 2nd phase (construction to commence from 2020 onwards) would ramp it all the way to 23,000 bbls/day.
Catalysts
Direct beneficiary of oil price rally.
Completion of Phase 1 CPF
Entering into production asset early stage provides more upside possibility.
Expansion of 2P reserves upon successful appraisal drilling of exploration wells.
Risks
Oil production natural decline, oilfield operational risk, country risk.
Rating
NON-RATED

Positives – Huge potentials in Emir-Oil.
Negatives –.Volatility in oil prices.
Valuation
Implied valuation with reference to independent valuer stands at RM1.18/share (before warrant dilution) and RM0.99/share (fully diluted). Valuation has also included primary upside potential (3 measures mentioned above). To note, full dilution of warrants may not realize in near term as warrant expiry date is at 8th anniversary date of QA completion, indicating high time value of warrant.
Source: Hong Leong Investment Bank Research - 24 Oct 2016

Ramlee, kind enough to flash the link. thanks

yes, please

Reach crosses another hurdle
PETALING JAYA: Special-purpose acquisition company (SPAC) Reach Energy Bhd could be a step closer to securing shareholder approval for its maiden acquisition of an oil and gas (O&G) field in Kazakhstan after one shareholder bought out another “yield-seeking” one.

Yesterday saw close to 118 million shares amounting to a 9.42% block in Reach crossing hands at a price of 76 sen apiece, which was five sen above market.

At 76 sen, this is more or less the cash value of Reach. Effectively this means that this is the amount that will be returned to shareholders should the SPAC be dissolved upon its three-year deadline come August 2017.

The transaction was valued at close to RM90mil and sources said that the seller of the block was Hong Kong-based PAG Holdings Ltd, which is said to be the single largest “yield-seeking” owner of Reach’s stock.

Sources said the purchaser of the block is believed to be MTD Capital Bhd. MTD Capital is an investment firm owned by the family of Tan Sri Azmil Khalili Khalid. It has a portfolio of businesses ranging from property development, manufacturing, toll concessions and waste management to construction.

SPACs are entities that raise money on a public listing to fund acquisitions of businesses in sectors its management are supposed to be experts in.

However, SPACs need 75% of their shareholders to vote in favour of their first deal, known as the qualifying acquisition or QA. Anything less and investors get paid back all the cash in the company.

Opportunistic yield-seeking funds tend to buy into SPACs hoping to cash in on the difference between the market price and the cash value of these companies. They typically collect enough shares in the company to vote down the QA in order to ensure that the monies get paid back.

This situation has transpired in two other SPACs, namely, CLIQ Energy Bhd and Sona Petroleum Bhd, which are now in different stages of returing cash to shareholders after failing to get their QAs approved.

MTD Capital first emerged in Reach as a cornerstone investor during the latter’s initial public offering in August 2014 and currently holds a 1.72% stake. It is believed to be a shareholder keen to support Reach’s QA.

PAG, meanwhile, is a Hong Kong-based alternative investment fund. It describes itself as one of Asia’s largest independent alternative investment management groups with US$16bil in capital under management across private equity, real estate and absolute returns.

PAG focuses its investment activities on three core strategies – private equity, real estate and absolute return – while maintaining the flexibility of a multi-strategy, cross-firm approach to investment opportunities.

PAG had also emerged in other SPACs such as CLIQ Energy and is believed to have voted against the QAs of those companies.

Reach will know its fate on Nov 4 – the day shareholders decide whether or not to vote for Reach’s QA to go through.

Other prominent yield investors in Reach include M. Siva Kumar who owns a 2.13% stake. Sources said that other yield investors working with Siva Kumar will now collectively own at least 6% of voting shares of Reach, post the exit of PAG.

Meanwhile, it is believed that shareholders such as Lembaga Tabung Haji with an 8% stake, Azmil Khalili with 2.62%, MKW Jaya Sdn Bhd with 3.54% and SMB Resources Bhd with 1.49% are willing to vote in favour of the deal.

Reach is proposing to pay US$154.9mil (RM638.2mil) for a 60% stake in Palaeontol BV, which is the owner of the onshore O&G field called Emir-Oil LLP in south-western Kazakhstan.

The vendor of the stake in Palaeontol is Hong Kong-listed MIE Holdings Corp.

MIE plans to own the remaining 40% in Palaeontol.

Emir-Oil owns the production contracts for four producing oil blocks and an O&G exploration contract that extends over 850 sq km.

Reach will have four producing oil blocks, along with two development fields and six prospects within the Emir-Oil Concession Block.

Goldman Sachs alum says that a negative rates mean gold should be a lot more expensive

A recession is coming-so hide in gold, says influential investor Raoul Pal

Hi Funda, Sales, Bonus 2016 thanks for your encouragement. Btw, I shared my opinion in this forum for the good of my fellow friends and as I noticed that there are not much nay sayers here. This nay sayers simply likes to argue without basic as what bonus2016 highlighted.

As far as I know and to my understanding based on experience. I would like to say the following.
I got a slight news about Vivocom last year and i bought its warrants at 4cents and when it fully blown, I sold them at 20cents. How? The following things I followed. Buy- wait for months- hear the intial and early news in the media-wait- hear the second wave of news and then a clear indication of investment banks covering the stocks with target price- wait and be patient till it really runs and stabilises and then time to sell.
Earlier I did the same things with Mpay, VSolar and Ifca. Ifca I was a bit nervous when Brahmal Vasuthevan opt out and I sold. Later it soared like hell.

For Bornoil, it should only be medium term to long term.
I got some news, I bought its warrants. The intial news are out- Wait- The second wave of news will out in anytime or a bit later- Wait- Let the bankers cover this stock with a target price- wait- the stock runs- wait- still it stabilises and then your decision to sell or not.
With Bornoil I am confident.

Guys, I have mention this before. All we are hearing now including the QR are nothing. There is a big news to come and you will see how the counter will react. Till then pls hold and be calm.

No hope of the QR announcement today.

good support at 18.5c

Looks like today

To my knowledge, the actual big news are not out yet and may take a month. What we are hearing now is nothing. Be patience.

QR may be on Wednesday

Redz1, I think it goes to all of us, ya

When in stepped in this counter, there were a lone range who will flash in some news that encouraged me to stay in. Later geniune persons like Bonus, Bruce and Redz1 have spiced up this forum. Who is the lone ranger, obviuosly it is Paperplane. Thank You guys nad keep up your good works. I really appreciate your efforts to keep this forum alive. Bruce have chased out the nay sayers from this forum by his tireless efforts.