Posted by TheContrarian > May 15, 2018 04:55 PM | Report Abuse
At of March, Inari was 2.8? Now Inari only 2.08? Down 0.72. But end of March, Insas has only 400 million Inari shares, today Insas has 600 million shares.
perhaps management should teach the investment community to read Warren Bufffett annual letter.
Extract of it: "After stating those fiscal facts, I would prefer to turn immediately to discussing Berkshire’s operations. But, in still another interruption, I must first tell you about a new accounting rule – a generally accepted accounting principle (GAAP) – that in future quarterly and annual reports will severely distort Berkshire’s net income figures and very often mislead commentators and investors.
The new rule says that the net change in unrealized investment gains and losses in stocks we hold must beincluded in all net income figures we report to you. That requirement will produce some truly wild and capricious swings in our GAAP bottom-line. Berkshire owns $170 billion of marketable stocks (not including our shares of KraftHeinz), and the value of these holdings can easily swing by $10 billion or more within a quarterly reporting period. Including gyrations of that magnitude in reported net income will swamp the truly important numbers that describe our operating performance. For analytical purposes, Berkshire’s “bottom-line” will be useless.
The new rule compounds the communication problems we have long had in dealing with the realized gains (or losses) that accounting rules compel us to include in our net income. In past quarterly and annual press releases, we have regularly warned you not to pay attention to these realized gains, because they – just like our unrealized gains – fluctuate randomly.
That’s largely because we sell securities when that seems the intelligent thing to do, not because we are trying to influence earnings in any way. As a result, we sometimes have reported substantial realized gains for a period when our portfolio, overall, performed poorly (or the converse)."
Insas is just a convenient holding company for rich people. They are so many ways to extract the assets out of Insas should the need arise at the expense of minorities.
In the 10 years, have they ever generated so much cash in comparison to this FY? I only bother checking the past 5 year data, the answer is a big no. Note that they are even disposing fewer shares compared to last year and are gaining more dividend. Besides, if you know the nature of Insas business, you can make use of the "gyration".
Newly minted Finance Minister LGE wondering why EPF and KWAP pouring billions of ringgit to own a small portion in Inari. Bodoh, bodoh, bodoh. You just need RM350 million to take control of Insas and indirectly control Inari.
Dear TheContrarian and all, Maybe we can joint force for the next AGM where we should mobilize not less than 50 shareholders to put in Requisition with below Resolutions:
Resolution1. Citing the below listing requirement to appoint TheContrarian as independent director. SECTION A – DISCLOSURE ON MALAYSIAN CODE ON CORPORATE GOVERNANCE Disclosures in this section are pursuant to Paragraph 15.25 of Bursa Malaysia Listing Requirements. Practice 4.1: At least half of the board comprises independent directors. (Currently Insas board only have 2 independent directors)
Resolution2. To approve a final single tier dividend of ____ cents per share in respect of the financial year ended 31 June 2018.
Resolution3. To approve a formal dividend policy of allocating at least __ % of the Company’s profit after tax, excluding exceptional items to be distributed to its shareholders as dividend payment.
Resolution4. Share dividend on the basic of 1 Treasury Share for every ____ existing ordinary shares of RM 1.00each held in the Company.
Resolution5. Share distribution on the basic of 1 Inari share for every ____ existing ordinary share of RM 1.00each held in the Company.
But its funny how people are very proactive when prices is down, compared to when market is up.
I'm personally ok with the management and how they handle the share price. I think buybacks should be increased, but if they dont, i can keep buying, no worry.
Jon Choivo, Insas can't do share buy back because Thong and persons in concert hold 32.9%, any share buy back would trigger an MGO which Thong says he cannot afford.
Dear Jon Choivo, On your question on Share buybacks? Refer: http://www.insas.net/pdf/img-20180514.pdf Q14. Insas shares has been rated as undervalue or cheap valuations by many financial and research analysts for many years. Shareholders urged the Board to come out with an action plan to address this issue so that Insas share price can truly reflect its true/intrinsic value
The Company’s respond: Dato’ Wong Gian Kui (“DWGK”) commented that the net asset value (“NAV”) of the Company as at 30 June 2017 is RM2.30, and if we take into account the mark to market unrealized gain of Inari shares, the revalued NAV or intrinsic value of the Company would be close to RM3.00.
Dato’ Dr Tan Seng Chuan added that the market sees the intrinsic value of the Company at RM3.00 but the market price is trading at +/- RM0.90. He is of the opinion that share prices and the Company’s performance have no direct relationship and the Directors’ primary responsibility is to make sure the Company runs well and not about making share price perform.
DWGK further informed the shareholders that the CEO as a major shareholder of the Company cannot acquire more Insas shares from the market, and the Company cannot continue with its proposed share buyback as such share acquisition and/or buybacks may result in the CEO and persons acting in concert (“PACs”) holding more than 33.0% of Insas shares which will then trigger a mandatory takeover offer (“MGO”) on the remaining Insas shares not owned by the CEO and PAC, unless a waiver of such MGO is granted by the Securities Commission and the shareholders of Insas under the Malaysian Code on Take-overs and Mergers.
Majority of the shareholders present at the meeting replied to DWGK that if the CEO apply for waiver of MGO, the shareholders will support and approve such waiver.
Thank you Note: I do have problems with the board as I cannot understand why they do not reward shareholder with reasonable dividend and not ready to take actions to address the issue of Insas undervalue share price. How can the Board unconcerned when the intrinsic value is RM3.00 and market share price is trading at such low price?
Dear Jon Choivo Since you are working in financial sectors, will you ask around any investment banker ready to lend me RM210 million so that I can buy up to 32% (224 million of Insas Share) and then during Next AGM proposed resolution: Share distribution on the basic of 1 Inari share for every 2 existing ordinary share of RM 1.00 each held in the Company. After distribution: Insas still hold about 300 million of Inari share and I will hold about 32% Insas share and about 112 million Inari shares which I can sell to market and repay the loan.
Insas EPS in latest quarter 1.2 sen, cumulative for three quarters 12.61 sen, NTA increased from RM2.34 at end of June 2017 to RM2.47 at end of March 2018. Hahahaha, 0.65 coming.
Haha i dont. In any event, insas is too tightly held for any outsider to take control.
This one, you're going to need to show your perspective to the director/owners and see if they follow your view.
My position % wise, no way near as big as yours, so for me, there isnt that much pressure. I can keep buying very slowly if the price does not move.
======================================================================= Posted by Sslee > May 24, 2018 06:36 AM | Report Abuse
Dear Jon Choivo Since you are working in financial sectors, will you ask around any investment banker ready to lend me RM210 million so that I can buy up to 32% (224 million of Insas Share) and then during Next AGM proposed resolution: Share distribution on the basic of 1 Inari share for every 2 existing ordinary share of RM 1.00 each held in the Company. After distribution: Insas still hold about 300 million of Inari share and I will hold about 32% Insas share and about 112 million Inari shares which I can sell to market and repay the loan.
i think the board knows the sheer undervalueness of the shares.
I would suggest your next course of action, being a very proactive investor (very commendable by the way), is to push for a "waiver of such MGO is granted by the Securities Commission and the shareholders of Insas under the Malaysian Code on Take-overs and Mergers. "
Waiver for MGO is only granted by Securities Commission on valid grounds. Thong has no valid ground and is unlikely to be able to obtain approval for such waiver.
if they claim to own only 32% then why is the 68% keeping silence. If sslee can have enough publicity and round up 33% share holder then can put pressure on them. Remember when the silent majority speaks it can change things. I support sslee.
Dear goodguess, Thank you for your support but I am just joking with Jon Choivo when I pose the question “Since you are working in financial sectors, will you ask around any investment banker ready to lend me RM210 million so that I can buy up to 32% (224 million of Insas Share) and then during Next AGM proposed resolution: Share distribution on the basic of 1 Inari share for every 2 existing ordinary share of RM 1.00 each held in the Company.”
I do not have KYY wealth or Tun M charisma to mobilize the silent majority to Tun/Malaysian Cause. By the way GE14 is done with; PH won the election and formed the government. No more campaign talk, just needed to work harder think out of box and start a new approach.
For few of us that see the value in INSAS please give ourselves a thumbs-up. I will start to slowly accumulate some INSAS share again and I will not seek any more confrontation with the INSAS board during the next AGM but will write to them on how to improves things and hold them to what The Company’s responses in the 55th AGM minute. http://www.insas.net/pdf/img-20180514.pdf
I will tell them if my suggestions and questions will cause uneasiness/uncomfortable with the board during the AGM I will not ask that questions. I seek to give and take (give more than I take and take nothing for grant. However if what I request for a reasonable/cost of living dividend in not entertained then I will start collecting name-card during the AGM and will write promotion article on INSAS to the local/foreign fund manager or corporate raider.
Thank you
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Jon Choivo
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Posted by Jon Choivo > 2018-05-17 00:42 | Report Abuse
Bro, inari bonus share.
Posted by TheContrarian > May 15, 2018 04:55 PM | Report Abuse
At of March, Inari was 2.8? Now Inari only 2.08? Down 0.72. But end of March, Insas has only 400 million Inari shares, today Insas has 600 million shares.