Posted by armt > 2014-11-11 10:07 | Report Abuse

Actually, 60 sen is the base price for MEGB now. People like Creador and Brahmal are looking significant upside to their entry price. Logically, MEGB should definitely trade above!

Posted by deric123 > 2014-11-11 10:34 | Report Abuse

but they are only conducting a due diligence for now right? I just wonder, what if it doesnt go through?

Posted by armt > 2014-11-11 11:03 | Report Abuse

Well, Creador has already come in regardless. SMRT is the party that is conducting due diligence for Siva's stake. I see no reason why it shouldn't be completed

Posted by Shawnie > 2014-11-11 11:08 | Report Abuse

Siva can't wait to sell his stake as he know he sucks at managing the company. SMRT & Creador made an offer of 60cent then for sure they are confident to boost up the price. Why you buy 60cent when you expect it to go down???

Posted by armt > 2014-11-11 12:22 | Report Abuse

After the proposed disposal of the assets to Siva, the company will have Zero gearing. SMRT is then able to leverage on their existing network n infra to add value to Masterskill. Any future improvements will directly accrue to the owners of the company (i.e. Masterskill shareholders)

Posted by armt > 2014-11-11 13:23 | Report Abuse

KUALA LUMPUR (Nov 11): SMRT Holdings Bhd ( Financial Dashboard) and Masterskill Education Group Bhd (Financial Dashboard) fell after the two counters resumed trading this morning. Both stocks declined on SMRT's intention to purchase a 32.9% stake in Masterskill from the latter's director Siva Kumar M. Jeyapalan.

At 12.30am, SMRT fell 6.5 sen sen to 79.5 sen with over 5.5 million shares changed hands.

Masterskill fell 0.5 sen or to 61 sen with about 22 million shares traded.

Interestingly, SMRT had offered to purchase Siva’s 32% Masterskill stake at 60 sen a share.

Yesterday, Masterskill told the exchange that SMRT together with private equity fund Creador could make a take-over offer for the remaining Masterskill shares they did not own.

Creador already owns 16.26% in Masterskill. The acquisition of the 32.9% Masterskill stake will result in SMRT and Creador owning a combined stake of about 49.16% in Masterskill.

Trading in SMRT and Masterskill shares were suspended between 2.30pm and 5pm yesterday.

Today, a remisier said that the fall in share prices of SMRT and Masterskill “does not make sense” and was mostly driven by negative market sentiment towards the take-over attempt.

“SMRT’s acquisition price of 60 sen a share is very close to Masterskill’s net tangible asset per share value. So, it does not make sense that both counters have fallen so much

“I believe that the market has a negative view on the acquisition because Masterskill is a loss making company” he told TheEdge Markets.com.

The remisier said Masterskill and SMRT's share prices would “settle down” once investors understood the meaning and impact of the latest announcement.

“I expect the share price for Masterskill to hover around 60 sen and SMRT’s share price to be around 80 sen. Any upside for these counters would be driven by momentum or more positive sentiment,” he concluded.

Posted by stock_expert > 2014-11-11 14:44 | Report Abuse

this is a no brainer investment....downside capped at 60 sen and so much potential upside...the acquirer has already acquired 17% on their own and has locked-in the owner 32% block for 1 and a half month...there is no seller in the market...its so obvious where the stock is going. :)

Posted by armt > 2014-11-11 15:08 | Report Abuse

Total control over the company with mandate to carry out massive revamps if necessary. Synergies can be reaped. Best to hold on to your stake and let the share price appreciate

Posted by Shawnie > 2014-11-11 16:42 | Report Abuse

I see there are some people purposely push down the price......

Posted by armt > 2014-11-11 18:44 | Report Abuse

Volume so high, what are they doing. Suppressing the price or what?

Posted by 4u2c > 2014-11-11 22:14 | Report Abuse

those who own this share r lucky people. Its a useless company base on its P n L .....40 pct upsides since last 3 wks to push up to 60 cts = their nta. Company has bn sold. The potential of this company is good with Brahmal n SMRT mgt........

Posted by 4u2c > 2014-11-11 22:54 | Report Abuse

cash cow coming to help ?

Posted by wiseeye > 2014-11-11 23:12 | Report Abuse

I have looked through the financials of both companies and did a brief business analysis. Synergies can be achieved provided MEGB's existing if MEGB can trim down its losses and start providing courses that currently SMRT provides. Instead of only focusing on medical, the existing centres of MEGB can include trainings provided by SMRT. Another viable option is to shut down its existing medical courses in areas where they have little students and turn it into full SMRT training centres.

There are many cross-selling opportunities to create synergistic benefits. It all depends how creative the directors of SMRT and Creador to fully maximize shareholders' wealth.

Now MEGB needs to continue with its cost-cutting efforts while strengthening its balance sheet. Both companies can leverage on each other's services and solutions to develop and expand the businesses. Infact I believe one day SMRT may fully acquire MEGB, just like CUCMS if due diligence is goes through. This is only the first stage of acquisition.

Based on its SOFP, MEGB has a lot of properties and I believe this is a great attraction to investors as well.

Posted by godbless88 > 2014-11-12 01:04 | Report Abuse

Thanks wiseye for sharing your insights on MEGB and SMRT.
Looking at MEGB's financial, the company has not been doing well since 2012, especially in 2013.The net income is improving recently, though the profit margin is reducing. However, one thing to take note is that the long term debt and total liabilities has started to show signs of reducing.
With Brahmal taking a significant stake in it, he can op to restructure the company and be able to turn it around as he has the financial capability in funding it. What they should do now is to reduce the debt as soon as possible as the gearing is very high - with the potential of interest rate going up next year, MEGB may suffer more due to this reason.

Posted by armt > 2014-11-12 09:25 | Report Abuse

godbless, they have proposed a sale and leaseback for the properties which will reduce their borrowings to zero. (Link to announcement: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1787881)

Posted by godbless88 > 2014-11-12 09:36 | Report Abuse

Thanks for the insight armt, as I'm not invested in this counter but rather on smrt, hence I wouldn't know about the technicalities abt MEGB. I'm only doing a brief analysis based on the financials on MEGB that's all. If the proposal does goes thru, then it will be a game changer towards the high gearing. Cheers bro :)

Posted by armt > 2014-11-12 09:47 | Report Abuse

Haha, i took a position on both sides. I actually feel the deal is beneficial for both SMRT and MEGB. Hopefully investors would eventually see that

Posted by wiseeye > 2014-11-12 13:21 | Report Abuse

I believe both sides have the potential provided SMRT has a substantial control over the direction of the business.

Posted by Alpha Trader > 2014-11-12 16:24 | Report Abuse

Another mushroom is going to boom here

Posted by Flintstones > 2014-11-12 19:49 | Report Abuse

Is MEGB not being privatized right now? Once the 32.9% stake sale goes through, MGO has to be conducted. If I were Brahmal or SMRT, I would privatised the whole company at 60 cents now rather than few years down the road which could make the acquisition a lot costlier.

Posted by armt > 2014-11-12 19:52 | Report Abuse

The offer is extended to the rest of the shareholders at same price (assuming due d by SMRT shows everything is ok). Technically, if you (minority shareholders) reject it, the company remains listed.

Posted by pdtan > 2014-11-13 04:16 | Report Abuse

Ready for a one-day push to 0.65 next 2 days

Posted by zx08 > 2014-11-13 08:33 | Report Abuse

Stock pick :MEGB - expected turn profit next quarter, megb is undergoing restructuring exercise now. It has ceased 3 of its non profitable operation in ipoh, kota bahru and jb, and proposed to dispose its properties and expects to sit on net cash of 42cents per share after disposal, which means the business only cost 18c, brahmal's creador and smrt are expected to turnaround the company very soon with alot of synergies to derive between the 3 parties, there are useful information at alpha trader's blog at http://klgemseeker.blogspot.com/2014/11/megb-dark-house-in-making.html?m=1

Posted by zx08 > 2014-11-13 08:33 | Report Abuse

Alpha trader new call : MEGB
http://klgemseeker.blogspot.com/2014/11/megb-dark-house-in-making.html

Posted by zx08 > 2014-11-13 08:36 | Report Abuse

Board the train before too late

Posted by Helen_Woo > 2014-11-13 09:06 | Report Abuse

Risk is that government already cut PTPTN loan. Student population going down.

Posted by share2014 > 2014-11-13 10:10 | Report Abuse

With smrt around no worry

Posted by Vaylens Chong > 2014-11-13 10:29 | Report Abuse

But how smrt keep dropping?

Posted by Alpha Trader > 2014-11-13 11:04 | Report Abuse

SMRT drops because some stupid fellas thought megb is a stupid co, megb in fact has cash of rm0.42 after all the disposal! come on, no analyst could tell you that, this is the next ifca man, next year

Posted by Vaylens Chong > 2014-11-13 11:25 | Report Abuse

BUt so much seller, how to push up?

Posted by armt > 2014-11-13 12:00 | Report Abuse

Alpha Trader: I think you forgot to account for one thing, the current 60 sen valuation actually is INCLUSIVE of the properties they currently own. When the sell it to Siva @ book value or close to book value...you essentially sell hard asset in exchange for another asset (albeit a liquid one), which doesn't change anything. So it shouldn't actually be 60 sen + 42 sen = RM1.02 valuation. Have to point this out so everyone is not mislead. The only way for the valuation for the company to change via the disposals is IF SIVA PAYS BEYOND BOOK VALUE, which means the gains can be accrued to us, the shareholders.

What can happen though is that the proceeds from the disposal can be used to pair down borrowings, which effectively generates interest payments savings and possibly earlier distribution of cash via special dividends etc.

Posted by armt > 2014-11-13 12:03 | Report Abuse

Nevertheless, I still think there is upside to MEGB's current price, premised on the fact SMRT and Creador's entry px into the entity is @ 60 sen. They would probably look to optimize their returns either via earlier distribution of MEGB's dividends to shareholders (including to themselves) or they may finance Siva's acquisition of the properties (which some argue are at a bargain!) as a way to entice Siva to sell his stake @ 60 sen.

Posted by pdtan > 2014-11-13 12:25 | Report Abuse

Ikanbilis who hope to make some $$$ (and avoid losses) should prevent themselves being bewitched/mesmerised by all the futures/profits/turnaround moves/figures/talks but concentrate on chart trend and syndicate manipulations.

This counter (like IFCAM/YGL/DNEX/BORNOILl/KNM) is itching to be pushed up and is T+4 today , crunch-time 3-4pm .

Offer-price is 0.60, so the chart/price will be manipulated to be above 0.60 for now (after the recent announcement).

Next move 0.72. Try make some monies T+4. Good luck!

Posted by Vaylens Chong > 2014-11-13 12:43 | Report Abuse

@pdtan, may I know how you know will pushed up? I found many seller block the road.

Posted by Vaylens Chong > 2014-11-13 15:39 | Report Abuse

All talks so pro but the share price going down. LOL

Posted by mohd2014 > 2014-11-13 15:43 | Report Abuse

Semua pun merah maa!! Apa pasal??

Posted by hagar > 2014-11-13 15:44 | Report Abuse

Force selling for T+4 lah. Good to pick up

Posted by pdtan > 2014-11-13 16:05 | Report Abuse

"Vaylens Chong @pdtan, ...........? I found many seller block the road."
13/11/2014 12:43

All the (major portions,say 80-90%) sellers and buyers that you saw , are planted there by the "Syndicate/shark/pusher/manipulator/DARKHANDS", to "guide" the price-movement - moment by moment, hour by hour,day by day, T+4 by T+4,-so that the MEGB chart will turn out to be (almost) exactly according to DARKHAND's PRE_DRAWN chart in accordance to their manouver/corporate-action/goreng-profit plan.

The resulting evolving price-technical chart will be "sooooo natural" and with bullish/bearish patterns for the technical analysts/advisers (official or unofficial) TO FOLLOW, many a times it become a trap to themselves and to those who follow their advice....

to be contd

Posted by armt > 2014-11-13 16:18 | Report Abuse

Why aren't these people caught man

Posted by pdtan > 2014-11-13 16:49 | Report Abuse

Of course, the more adept DARKHAND/Syndicate/shark/pusher/manipulator/ have to tally their push with the KLCI Chart/movement (they commonly say it as " we will push according to market condition" ). unless they are so confident to do it against the trend,commonly when the bull-run is over,during dead-cat bounce (eg Chan's Harvest/Nicorp, many OSK counters, Bornoil. KNM, Sarawak Pek-Moh's counters.........)

So dont be surprised that some GOOD shark-heads can tell you how the KLCI chart will behave next day/week/months, that's how they plan(months in advance) their million dollars investment/M&A and goreng actions for their own little money-making counters like IFAM/MEGB/SMRT.....

Also dont be shocked that KL:CI is a highly "guided" by EPF Chief Contractors. KLCI behaviour, doesnt matter how artificial/false/blatant ( eg last minute closing-daily/weekly/monthly) is sanctified by SC/Bursa as being "market-maker" actions.

So dont be surprised KLCI bottom is today 1810 3-4pm ( about 10 points below yesterday almost whole- day's 1820) and tomorrow(FRIDAY-MONDAY) is the REVERSAL-DAY with the KLCI push up 30 points=1840 (done Nov 07 opening)

..........................................................

Posted by pdtan > 2014-11-13 16:55 | Report Abuse

So if i am a ikanbilis bargain-hunting , i have already got all i want 3.30-4pm-price today in IFCAM,Bornoil,YGL,DNEX,MEGB.....

Posted by pdtan > 2014-11-13 16:59 | Report Abuse

So expect also that some counters may open with a little gap--IFCAM,YGL,DNEX--tomorrow morning..and cross the MA20 line in their respective intra-day chart

Posted by armt > 2014-11-13 17:01 | Report Abuse

why is the timing always around 3.30-4pm?

Posted by Vaylens Chong > 2014-11-13 17:07 | Report Abuse

@pdtan, Tomorrow will up after T+4 today?

Posted by calvin > 2014-11-13 17:10 | Report Abuse

Now MEGB TP is what price?

Posted by pdtan > 2014-11-13 17:17 | Report Abuse

armt/chong/calvin-------if you have the intraday charts (use the 30min) eg OSK n CIMB types, open it up ,add the bollinger band, with 20, volume, Slow Sto K(14) D(3)....stare at all the charts and THINK for 1hr/day/week, you will soon ....."EUREKA"!!!!!!

Posted by Vaylens Chong > 2014-11-13 17:43 | Report Abuse

@pdtan, so are you buy in around 3.30-4pm just now?

Posted by pdtan > 2014-11-13 18:12 | Report Abuse

armt why is the timing always around 3.30-4pm?
13/11/2014 17:01

Each day ,for every T+4 position, each brokerhouse's dealer will take-over from their remisiers and online clients and start t THROWING (selling like babi-buta!!) the unsold/unpaid position to the next available-buyer on the board starting 3.30pm and ending around 4.00-4.15pm.They (including their bosses) will be hauled up/stern warning the next day by the Bursa for any omission.


So the DARKHAND/Syndicate/shark/pusher/manipulator will happily cooperate in this situation : whenever there is a Peak price n volume on the T(day), they will start SELLING down the price (they call it market's NATURAL retracement) and ON THE T+4 3.30-4.15pm , there will be 3-4-10 folds ("planted") buyers at the BOTTOM price (according to their GORENG-CHART).....


In Malaysia/KLSE, these DARKHAND/Syndicate/shark/pusher/chart-manipulator will carry on with this soft of sinful and pathetic life (conning the small investors day in and day out) ,and in no time they will be millionaire, and some bull-runs several years later become DATUKs, some even become Tan Sri (owner of brokerhouse)...
this is what our Malaysian media habituall and respectfully described as "very rewarding LIFE achievement", get it?

Posted by pdtan > 2014-11-13 18:14 | Report Abuse

habituall =habitually

Posted by pdtan > 2014-11-13 18:17 | Report Abuse

they will be millionaire=they will become millionaires...sorry