i am just asking, is the Chairman, Tan Sri age 83 was substantial shareholder, ex Suhakam Chairman, ex UN Assembly President, was also UN Security Council Chairman somehow refering to recently 100+ marijuana plant found by police in his Bungalow? just asking..
Klse2022. I can only speculate why he disposed his share. If you look at the Bursa Announcement, he and the Chairman disposed Pledged Security. Pledged Security means the share was used as collateral. It could be a margin call where top up was required but no one knows for sure. We can only speculate / guess here.
If you want to know more about Pledged Security case study on what happened to Genting HK, you use the link below.
Cypark Resources Bhd chairman Tan Sri Razali Ismail has ceased to be a substantial shareholder of the company, following the disposal of 7.26 million shares or a 1.22% equity stake in the renewable energy company since May 24. Razali disposed of the shares in three tranches comprising blocks of 4.78 million, 1.98 million and 500,000 shares for a total consideration of RM3.32 million. About two weeks ago on May 13, he had also disposed of another block of 500,000 shares for RM367,500.
Let's study what was the reason for the selling pressure and disposal of shares from directors? - it was not a debt payment issue as RAM has reaffirmed its AA3 rating. - it was not LSS2 or WTE project issues as the management has explained the reasons for the delay and these projects will commence operation in Sept 2022. - it could not be audit discrepancy issue as it's audited FY21 annual report just published in Feb 2022, and there is no financial audit going on in Cypark now.
The BusyWeekly article (dated 28th May) pointed out that the possible reason was : On 23 May, there was an "extraordinary resolution notice" issued to bondholders. The changes include modifications to the transaction terms and payment structure. BusyWeekly opines that this could be the reason for triggering selling pressure on the next day, i.e. 24th May.
The timing makes sense as the above was what happened one day before the selling pressure started on 24th. Busyweekly also commented that, subsequently, the short-sellers came in to worsen the selling pressure and then directors might face margin call and had to dispose of some of their shares.
Down trend 1)from Sep 2021 to Apr 2022 . Price drop from $1 to $0.8 2) prior to 24/5 price collapse, share prices drop continuesly for 16 days without any rebound !! These had caused panic !!! When Daud disposed share n announced on 17/5, his action had trigger more selling. Then, everybody started panic including me....
En Megat acquire company share can lead to 2 possible scenarios ; 1) others pay him money, just wayang 2) Cypark no big issue. Current level is good chance to invest. Lets think, 1 or 2 is more likely ?? Please note that Megat share is NOT in margin account. Whereas other big big bosses had pledged their share in margin acc..
EPF dispose 1) 100k 13/5 before price crash $0.75 2) 5 mill 24/5 during price crashing, price around $0.6 Means ; EPF is more comfortable in 13/5 than in 24/5. Question, why EPF NOT comfortable only in 24/5 ? Most likely is due to market crash... This is just my speculation. Maybe wrong...
Value88. Your point maybe possible reason. Another possibility is due to Long term down trend(due to project delayed), worst when Daud disposed share n announced on 7/5 ,caused weak sentiment n margin call.
EPF also run, Chairman also run. Last time Sapura also like this. Mukhriz run too, but many stayed.... when you see so many big bosses run, even if you lose 50%, just run, if dont run, later become 99% losses.
run before it is too late. confirm bad news coming, insider selling like crazy.
Hi Klse2022, yes, I am quite sure the reason doesn't relate to accounting fraud bcos there is a period of time for a company to be subject to a financial audit. For Cypark whose financial period ends in Oct, their last audit should fall between Nov'21 to Feb'22 before the FY21 annual report was published. For quarterly reports being published, they are not being audited. That's why u can see Cypark's Q1 FY22 report with the title says: "Unaudited" Condensed Consolidated Statements of Comprehensive Income For the First Quarter ended 31 January 2022
EMPLOYEES PROVIDENT FUND BOARD disposed 5,000,000 shares on 24-May-2022. TAN SRI RAZALI BIN ISMAIL disposed 500,000 shares on 24 May 2022 TAN SRI RAZALI BIN ISMAIL disposed 1,979,900 shares on 24 May 2022 DAUD BIN AHMAD disposed 9,999,300 shares on 25-May-2022. DATO' DAUD BIN AHMAD disposed 4,503,000 shares on 25-May-2022. DATO' DAUD BIN AHMAD disposed 1,750,000 shares on 25-May-2022. TAN SRI RAZALI BIN ISMAIL disposed 4,776,500 shares at 0.400 on 26-May-2022. TAN SRI RAZALI BIN ISMAIL disposed 500,000 shares at 0.450 on 25-May-2022. TAN SRI RAZALI BIN ISMAIL disposed 1,979,900 shares at 0.597 on 24-May-2022. DATO' DAUD BIN AHMAD disposed 9,999,300 shares at 0.401 on 25-May-2022. DATO' DAUD BIN AHMAD disposed 4,503,000 shares at 0.435 on 25-May-2022. DATO' DAUD BIN AHMAD disposed 1,750,000 shares at 0.404 on 25-May-2022.
The selldown might have triggered as early as 17th May when the directors disposed of a relatively smaller amount of their shares (could be due to a margin call too). Since 24th May, the selldown accelerated probably due to the bond incident that happened on 23th May. I suppose that's why the CEO called in the RAM officer to reaffirm its rating on the 25th, and the announcement was made on the 27th. Otherwise, why would such an announcement related to RAM rating be published in the midst of selldown. Make sense to u ?
The selldown was triggered by an incident on 17th, it was accelerated by another incident on 23rd, and then short-sellers joined in, more selldown happened, directors met margin call and disposed of their shares, selldown deepen, more fear from retailers, more profit for short-sellers, further selldown happened and so on and so forth. It is a typical vicious cycle.
The company itself does have some problems to trigger selldown to happen such as: I) the completion date of their projects is delayed. ii) the debt level is high iii) the directors pledged all their shares.
Value88. I salute to you !, Very professional analysis! I strongly believe your explanations most likely had pin point the actual root cause for recent price dropped. To me, as long is NOT accounting fraud, others are small issues. I believe the completion of their solar farm n WTE is the "Game Changer" . Once completed, everything will be difference...it is just a matter of time before completion....
Daud sold 16mill shares on 25/5 with prices around$0.4 25/5 is considered late ! $0.40 is almost lowest price ! So, he is the first or last to run ? Answer is the last ! This doesn't make sense ! He should be the first to run n sell at high price!! Conclusion. Its not true that he want to run. Instead, he is force to sell his share due to margin call... If he want to run,
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