Special Report: Hidden hands behind penny stock surge under scrutiny TheEdge Wed, Apr 21, 2021 05:00pm - 1 day ago
A few weeks ago, the authorities are understood to have raided several offices in Menara Lien Hoe in Persiaran Tropicana in the vicinity of the Tropicana Golf and Country Club in Selangor, looking for information on a group of individuals involved in manipulating penny stocks on the Bursa Malaysia.
The authorities, it seems, are after a group of individuals who control as many as 60 companies on Bursa Malaysia and appear to manipulate share prices and siphon out funds from these companies via numerous cash calls and the subsequent acquisition of assets. Also being scrutinised are the “asset-shuffling exercises” undertaken by many of the companies. There is also talk that they are allegedly involved in the legitimising of ill-gotten gains or money-laundering activities.
It is also learnt that there is a ringleader, an individual in his late 40s, who is not directly linked to any of the companies but efficiently uses proxies to mask his presence, utilising, instead, several generals who control the shares in many of them.
The Edge managed to identify almost 40 out of the 60 companies controlled by the same few individuals. (See chart next page.)
The ringleader controls, among others, Sanston Financial Group Ltd. The web of control appears to flow from Hong Kong-based Sanston.
According to its website, Sanston is a specialist securities broking firm regulated by the Hong Kong Securities and Futures Commission.
Despite the ringleader’s low profile, some blogs — equating him to Datuk John Soh Chee Wen, who is facing trial in Singapore for stock manipulation — have begun to talk about him and his generals, and their alleged stock manipulation activities that have been going on for some time now.
While two government authorities are said to have raided the premises of companies in Menara Lien Hoe, it is understood that the Securities Commission Malaysia (SC) was not part of the exercise. In response to a query on whether an investigation was ongoing, the SC replied: “As a matter of policy, the SC does not comment or respond to queries on whether it is investigating any individual or entity.”
A source close to the SC, however, says that the individuals and their stock manipulation operations have been “on the SC’s radar” for some time now.
Market talk, meanwhile, has it that the Inland Revenue Board and the Malaysian Anti-Corruption Commission were the two government agencies that paid the companies a visit, carting away documents.
“He (the ring leader) is a smart cookie ... he doesn’t surface, so the trails do not lead to him. It’s hard to pin him down, you can’t prove that he is behind the whole thing (manipulation and pillage of companies and its shares),” says one source.
Another source says the central bank is monitoring the ringleader and his generals and could be looking to uncover money-laundering activities.
Menara Lien Hoe houses 11 of the almost 40 companies in the web. AT Systemization Bhd (ATS), MLabs Systems Bhd, Focus Dynamics Group Bhd, mTouche Technology Bhd, Fintec Global Bhd, XOX Bhd, M3Technologies (Asia) Bhd, NetX Holdings Bhd, Lambo Group Bhd, Key Alliance Group Bhd and Vsolar Group Bhd have their principal place of business, head office, business office or corporate office in the building in Petaling Jaya.
The web of related companies In September last year, The Edge ran a special report on the same group, entitled “Hidden Hands Behind Penny Stock Surge”. Back then, sources say, the group had gained control — either via shareholding or the board — of 36 companies, out of which 21 were identified. Now, the number of companies under the group is understood to have ballooned to 60.
At the centre of the web is Fintec Global, while the flagship company of the group is Focus Dynamics, a company which has a market value of more than RM3 billion, but which, for its financial year ended December 2020, registered a mere RM16.72 million in net profit from RM66.26 million in revenue. According to the notes accompanying Focus Dynamic’s results, the profit was attributable to “fair value gain on quoted investment”, among others.
As at end-2020, Focus Dynamics had accumulated losses of RM419.92 million, making it hard to justify its market capitalisation of more than RM3 billion, which grants it a place on the MSCI Index.
Focus Dynamics’ net asset per share as at end-December 2020 was a mere 2.81 sen.
Its core business, after all, is in food and beverage — operating seven clubs and lounges, and related facilities.
In April 2020, Focus Dynamics was trading at 13 sen a share, but gained 550% to reach 84.5 sen by November the same year, for no apparent reason. (See table.)
Some of the companies in which Focus Dynamics has stakes include Brahim’s Holdings Bhd, where it has 16.08% equity interest. Brahim’s is best known for having a 70% stake in Brahim’s SATS Food Services Sd
Free chart analysis in our telegrm channel. If wish to join us, plz find out our name (Osc@r Tr@ding) in telegrm. Beside that, sometimes we will share some useful indicators or chart analysis skills that suits newbie.
I decided to bet on 0.065..i think all bad news already announced (bad Qr, share consolidation), people already cut loss so I think it's safe to buy now..hope it stable awhile then fly.
You read Fintec announcement. Even Fintec said DGD dilute their shares by always doing additional listing. Never endless additional listing. Ghost pukul ghost. very funny :) :)
Sudah dua hari show in top 30... but how many investor buy in? Hahahahaha....parking here parking there to lure newbies like me.. say no to fin Xo group...
Someone source said for fintec related group of companies, if the volume is big, price will not above 0.10. If less volume, price will be around 0.10 - 0.20. If DGB volume is big, only left a little room to gain. Buy with care.
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 257 views | 1 d ago
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 11379 views | 9 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
sangjero
647 posts
Posted by sangjero > 2021-04-21 12:23 | Report Abuse
@ahboi868......Correction !!!!anything below 0.12 is a lelong price..... DGB UPTREND
$$$$$
ahboi868 ANYTHING BELOW 0.10 IS A LELONG PRICE........BUYYYYYYYYYYYYYYYYY
21/04/2021 10:29 AM