Tornado: Surely between .60c and .62c, the difference is immaterial? Do you really mind the 3% difference when MEGB reaches RM1 or RM1.2? :-)

Mr Chua, when will the sale of properties to Mr Siva be completed? I'm guessing MEGB will do an EGM to approve both the name change and the sale of properties after the Offer period is over?

Agreed. Those who wanted to sell at 60 sens would have done so. Also Creador is barred from acquiring from market at a price higher than 60 sens (or rather they have to offer the same price to everyone if they buy > 60 sens) so who knows they may buy at higher price after the Offer lapses next Monday.

Even BV makes mistakes, Mr Chua ;-)

IIl316, if you don't want to sell your shares, you don't have to do anything.

Tornado: I have checked the Malaysian Code on Take-Overs and Mergers 2010, Creador is allowed to buy shares at the market at RM0.60 and below only during the Offer period. If they bought at say RM0.65, they will be legally obliged to offer the same price to all other shareholders.

Tornado, is Creador allowed to buy from the market when their Unconditional Mandatory Take Over Offer is in place?

Tornado, notice you commented on Padini too. What's your opinion on them? Personally I think it's a good time to buy in. Excellent management, good ROE, very good dividends and no share dilution for the past few years. Am I missing anything? :-)

Tornado, one of the things I am worried about the whole MEGB/SMRT deal is that SMRT owns only 23% of MEGB. Where there are competing interest (like hiring star lecturers, marketing courses to students, sharing costs etc), the tendency would be for the management of MEGB (who will be from SMRT), to favour SMRT first.

The only consolation is that Creador would play the counterweight in this occasion. Does anyone know if Creador is charging consulting fees to MEGB? Again, these related party transactions (if any) do not fill minority shareholders with confidence.

The other thing that I noticed is that SMRT actually borrowed money and did a private placement to fund their acquisition in MEGB. I would think this represents a big vote of confidence on their part, as I don't think management will choose to gear up significantly and do a PP on a whim. So I actually do agree with you Tornado, the risk/reward ratio of MEGB is quite favourable at the moment.

Tornado, the education business in Malaysia is not as lucrative as it seems. Are you sure that SMRT/Creador can turnaround this business and make sufficient profits to justify your target valuation?

Anyone calculated their LFL sales, especially sales per sq of retail space? I suspect it has gone down quite a bit despite the discounts currently given by management. Not a good year for Padini to be honest...

You can get the information if you read their annual report richie.

Although I have to admit I have zero knowledge of the glove industry, so if experts out there thinks there will be more demand in the future, than perhaps Supermax can be qualified as a 'growing' company.

But then again, the barriers to entry must be quite low for this sector. I mean, how hard is it to produce glove?

John, 10x PER is not cheap if the company is not growing. For a company who's facing stagnant/declining sales, it would be cheap only if it's around PER of 7 or 8.

Also, don't forget Supermax has significant loans in USD too, which offsets the favourable currency movement of USD/MYR.

If TTB's bearish opinion of the KLSE is right (which I happen to agree based on our weakening ringgit, lower oil price, high household debt and exposure to commodity prices), then the current downturn is only the beginning. Sit tight ladies and gents.

Hooi, how much do you buy per trade if you don't mind sharing. Surely if one trades too often then the transaction costs eat into our share performance?

Unless of course you have significant amount to invest. :-)

TTB says that there is no value in KLSE for the past few years. May I suggest to the shareholders of ICAP to widen the investment mandate so ICAP can buy shares in foreign countries too where perhaps TTB can find more value?

For the record, I see no problem with him keeping 50% cash if he sees no value. After all, he's the fund manager, not you. :-)