hng33 and M168.

1) If WASIA is invoked, there will very likely be no loss of confidence or increase in interest rates. Water industry is too small and takeover of utilities is common and expected since monopolies like water are sometimes more efficient under government than private control.

2) Selangor can easily grant another concession to China at rates that need not factor in payment for dedak. The concession to Splash can continue but with less and no increase in volume. Increase in volume can all go to the new concessionaire. China can build a plant and reservoir on say the Bernam within 12 months, together with pie links to the Selangor water grid! This way, the overall average cost of water can come down.

3) As I have posted, with Wasia, Splash's concession can lapse. Disagreement can be litigated. State can counter challenge the concession based on unfair practice of the previous regime and the interests of the people. That's likely one of the reasons why both Khalid and Azmin refused to pay more than RM250 million.

4) High profit margin due to agreed rates as in agreement between two thieving parties! That's why new Selangor regime is very unlikely to pay upon those 'receivables'!

I would wait for concrete news of sale of Splash.

Then why funds like Amanah Saham Bumiputra and KWAP are net sellers? Only KWSP, is net buyer. Brokers are brokers, especially those who also trade. They can make you broke if you let them. I am looking at the chart. Gamuda's price is caught in a narrow range in a holding pattern.All the key indicators show a holding pattern. I would wait for the concluding news on sale of Splash. The TP is high. There is time to cash in if the sale price is above RM1 billion. KPS may be a less risky counter to leverage on Splash's sale.

hng33, Answer to:
1) Why not? Alternatives are available. If not, just use WASIA. The people of Selangor will praise the fed govt for using WASIA - cheapest alternative for the people.

2) Sungai Selangor most viable? Maybe. Tunnel from Pahang was a political decision with the usual cronies involved; justified only from very long term perspective which is irrelevant. "In the long term, we are all dead" - Keynes.

3) Just because China builds a project China will control? What have you been smoking to make you jump to such a conclusion? As long as the project is on Malaysian territory, Malaysia will be in control.

3a) WASIA lose-lose? After WASIA takeover, concession will have nil value. Gamuda can challenge in court till the cows come home. In the meantime its share price will...?!

4) Splash's margin of 80% - 90% is daylight robbery of the people of Selangor with a lot going to dedak. PBA of Penang's is only 13%, comparable with overseas utilities. Is Splash more 'efficient' than PBA? I doubt it! As I have posted, Puncak had bargaining power, but Splash/Gamuda?

Please stop smoking what you have been smoking and get back to your medication. My life partly consist of helping people not get burnt by people like Koon and his agents. Koon was investigated in May 2016 for secret disposals of his shares by him and/or his agents without notifying the KLSE despite being a substantial shareholder. The resulting crash in the price of the shares which he recommended to others (e.g. Latitude etc) left him with massive profits and others with massive losses (I was not one of them though). The funds are to date net-sellers of this stock. I would wait for the outcome of the sale of Splash.
27/09/2016 15:58

And Splash's current super-profits are due to the generous rates the Selangor government agreed, under previous regimes, to pay. Will this continue? Those profits were squeezed out of the people under policies that amount to kleptocracy. That's why those RM1 billion plus 'receivables' are suspect and should not be paid, at least not fully! For 'normal' and fair profits of virtual water monopolies, please look at the profits PBA of Penang.

hng33, I have already replied to your old assumptions before. To summarise: 1) Water catchments are owned by the state not by Splash. State can divert water and create new reservoirs if necessary; 2) Sungai Selangor is only one catchment area. There are several others. A huge undeveloped one is Sungai Bernam; 3) With all these altenatives, and China waiting to pounce (likely already made offer the fed can't refuse), also with forced takeover under WASIA and a rapidly growing demand for water in Selangor, why should anyone pay more than RM250 million? I see a scenario where Gamuda will have to take the State and Fed govts to court - a long winded process! So for efficiency sake, it's WASIA or RM250 million! I would wait for the outcome of Splash's sale, latest Oct 7 2016.

The RM250 million is likely replacement cost for Splash's plant. At RM250 million, China can likely build a brand new ultra-modern plant. likely that's why both Khalid and Azmin did not offer more than RM250 million. All other Splash's assets are suspect since water business in Selangor had a sorry history of cronyism. Fed govt is nearly broke and cannot offer more. Politically also not feasible given the present controversies. At forced sale price of RM250 million, there will be a divestment loss of up to RM1 billion, Gamuda's profits will be wiped out for the next one and a half years or so. I would wait for the news on Splash's sale.

Splash cannot be compared with Puncak as per the referred article. Puncak owned all the pipe network for water distribution. Building a whole new piped water distribution system will be too costly. Without a water distribution network, water cannot be sold. Whereas Splash's water treatment plant can be easily replaced. In fact the Government need not take over Splash's plant. The government can build a new plant and cut out or reduce water treatment volume to Splash to a minimum possibly below break-even. So Splash do not have much bargaining power. Please do not listen to those who have bought Gamuda at a low price and may have already secretly sold down! The only scenario for a profitable sale of Splash is for the federal government to buy it for more than RM1 billion. Will the federal government do it?!

KWAP also net disposer in September. Only KWSP is net acquirer in September but by not much. Overall the funds net disposed 2,675,300 shares in September to date. The cloud over Gamuda is whether it can dispose Splash for at least RM1 Billion. Oct 7 is the deadline before forced takeover. Will Gamuda get more than the RM250 million offered? At a forced sale price of RM250 million, Gamuda will have to write off a divestment loss of up to RM1 billion or thereabouts.

PAS is dead meat in a modern state like Selangor. And if redelineation/gerrymandering fails to get through in time, UMNO won't have chance in Selangor even with Azmin's help!

Not sure overseas. But local confirmed if Gamuda does not get at least RM1 Billion from sale of Splash!

Amanah Saham Bumiputra reported disposal of 3 million shares on September 21st 2016. Sale was reported on 23rd September.

Net disposals of Gamuda's shares by the Funds of -2,675,300 shares especially by Amanah Saham Bumiputra and KWAP in September. Latest disposal of 3 million shares by Amanah Saham Bumiputra was on 23 September. I rather bet on KPS.

If Gamuda don't accept, it will be forced takeover. The receivables are suspect - inflated under the previous regime. No way the people of Selangor will pay the 'receivables'! Anyway, Oct 7 is the deadline!

Selangor won't foot RM500 for Splash. Azmin's head will be on the chopping block! hng33, Gamuda-we is pump and dump since mother share did not move. I rather bet on KPS.

Even if Fed pays RM500 million for Splash, KPS will benefit mightily, but Gamuda will book RM500 million in divestment losses!

Splash deal will likely doom Gamuda. Najib has no money to pay more than RM250 million. But KPS to benefit!

Son being pushed up while mother is sold down. So take youe profits before those sifus/syndicates who have bought low sells down!

Miss Ann Kung retired in May 2016 as Group CEO. The other major shareholders did not sell despite increasing their shareholdings by 20%. Miss Kung probably sold for pocket money.

Miss Ann Kung had retired as Group CEO since May 2016. No other substantial shareholders has sold since Miss Kung sold despite having a 20% increase in share due to the bonus issue. I would be inclined to top up even as the market bottom out.

vivo wb affected by syndicate play.

Don't think it will close down. There is every reason for price to go up, not down.

price should go up tomorrow

jacklintan sweetie, if you don't deceive, you are not a devil. The very nature of a devil is to deceive. As for the stock market, it's for investment and trading. Learn to read charts and one should be alright.

Thanks darlink jacklintan. You are a very smart gal! Asks the right questions. Knows when she gets the right answer. Likely very beautiful too!

jacklintan darlink, should elections be by early next year, Puncak would either be in heaven or hell, depending on whether Roxali be required to donate and/or how what project he can get in return!

Vivocom is affected by the disappointment with AAX's results. Hopefully a good quarter result will end all doubts.

It's the foreign funds selling because they expect US fed interest rates to rise and therefore USD to rise against the RM. Only the contras are throwing.

Selling well absorbed with only a half sen loss!

It's likely overseas funds selling because of fear of interest rate rise by US Fed. With oil price so low and passenger just very marginally down due to seasonal factors, AAX is very very unlikely to make a loss this Q2!

Q2 passenger load only negligible decrease due to seasonal factors and is expected (see Q1 report).

Heavy buying on mother share! Good results soon?!

29 sens is equally strong resistant/support level. Who will win next week, bulls or bears? Momentum seems to be with the bulls!

Strong close at 29 sens!

Bears vanquished at 29 sens! 29.5 sens next?!

Syndicate desperately trying to stem the bulls at 29 sens!

Volume buying at 29 sens now!

Forced selling subdued. So likely close at 29 sens!

Yeah, they are collecting at 28.5 sens and bulking up at same for the forced sellers!

Shows very few sellers left. Overall buy at 29 sens still ahead. We shall see how the likely forced sell impact come session end.

Syndicate very likely collecting at 28.5 sens!

Instead of 'previous disposals' of his shares, I should have used 'secret disposals' of his shares because that's what they were! Just to make the message more cogent!

Syndicate keeping price from rising - every buy at 29 sens triggered a sell order at 28.5 sens. The reaction seems to be automated!

Koon Yew Yin was investigated in May 2016 for previous disposals of his shares in other companies promoted by him and his agents and not notifying the exchange despite being a substantial shareholder in these companies. The shares of these companies plunged leaving many with massive losses. This is an indication of how promoters of stock and shares they invest in make their money nowadays! A promoter of a counter have already bought in at low costs before they promote. They can sell anytime at massive profits well below the TP they promoted like this counter - Gamuda-WE! And they will not notify you until after they sold i.e. if they notify at all! Just a note of caution to investors!

hng33. But SPLASH treatment plant was not built at a 'relatively low cost', otherwise at a takeover price of RM250M, it won't be threatened with a divestment loss of RM1B! And if built more than 10 years ago, the capital cost would have been written down near to zero, unless of course the divestment loss also include receivables that were inflated due to the exorbitant water tariffs charged. Azmin won't be undermining SPLASH. He may just be restricting it to the minimum uptake! SPLASH's plants will still be in good working condition. And Azmin will then use his new plant to cater to the growth in demand for water! Either way, Gamuda will be hit. We should know the answer by Oct 7! Gamuda likely praying that BN takeover Selangor state by Oct 7. Then Selangor's massive reserves can then be used to pay them their price for SPLASH!

hng33. Azmin's possible new plant can also extract water from Sungei Selangor or other rivers like Bernam!

hng33. 'well down' or 'well done'?! There is a world of difference.

hng33. SPLASH's MINIMUM uptake will be less than half of Selangor's water needs, maybe even 25% or less and % will reduce as Selangor's water needs grow. So if Azmin want his new plant, he can immediately restrict SPLASH's uptake to the minimum and make his new plant economically viable immediately. Also the lower rates at which he can process water with his new plant will enable him to lower the rates to the consumer - a major plus in the next election and his PM ambitions! He can also pressure SPLASH politically to reduce rates if he can prove that his new plant can process water at a far lower costs.

@AlphaBetaGamma. True. But Selangor's water need is growing exponentially. Therefore SPLASH can be restricted to just the minimum indefinitely! The delta goes to the new plant which could process water at much lower cost than the inflated rates paid to SPLASH! The receivables, like the capital costs are likely inflated! So politically Azmin cannot pay. Also the SPLASH's capital costs are more than recovered given the inflated rates! And would the FED pay more if forced takeover? Maybe, but the FED's coffers are tightly stretched now!

SPLASH's no go for Gamuda. See my write up in Gamuda-WE forum. Selangor does not need SPLASH like it needed PUNCAK's pipe system for water distribution. At RM250 M, Selangor can get ultra-modern water-treatment plant especially from the Chinese. Selangor also has enough money for upgrading the entire colonial-era pipe system, especially with Chinese technology. Azmin tried to set up new holding company for Selangor's assets with him as head honcho but was shot down. That leaves him with only KPS - a very convenient vehicle for consolidating Selangor's assets, especially its water assets!

Maybe all Selangor's water assets vested in KPS?!