Posted by kcchongnz > 2013-03-07 15:40 | Report Abuse

When an employee exercise the ESOS option, he pay the exercise price and then get the number of shares. Hence there will be an increase of the total number of share and earnings per share will be diluted. The company receive the money for the exercise and hence get more cash. As the ESOS option is deep in the money and all employee will exercise them. These ESOS will definitely extract some value from the company. But as there is a limit of the ESOS given (max 3%), the value extracted is not much as compared to the total value of the company. I estimated from option pricing that the total value of the company will be only roughly about 17m.

The real problem is whether most employee will sell the exercised shares to the market as they will instantly make good profits. However, if they know the value of the company, at least the senior management who got the most of the ESOS should know, they may not sell with the present market price. This is just my opinion.

For shareholders like us, are we investing in the business or are we trading on the share price? It is a different perspective all together.

Posted by mogul88 > 2013-03-07 16:31 | Report Abuse

Employees exercised and selling them might not be a bad idea. Adds to liquidity if market grab it up as you mentioned is deep in the money. Heheheh

Posted by sh2383jbt > 2013-03-07 23:42 | Report Abuse

I am still agreed with kcchongnz.invest to the company business with well manage company. Simple.

Posted by gark > 2013-03-14 19:18 | Report Abuse

Something is funny, Subur Rahmat submit bursa filing that they bought 1.48 million shares on 11/03 at RM 1.86.

However total shares traded in open on the day market is 270,500 shares. Did Subur Rahmat bought those shares in off-market transaction that day?

Posted by jtpc2006 > 2013-03-14 19:21 | Report Abuse

Subur Rahmat keeps building up their shares, anything going on?

Posted by gark > 2013-03-14 19:27 | Report Abuse

Usually Subur Rahmat buys 10k-20k shares each time. They have not even breach 100k shares before. This is the first time I see purchase in millions of units.

Either it is a typo or something compelling is coming. Subur Rahmat belongs to the controlling shareholder (Basir family).

Posted by JimYeoh > 2013-03-14 20:19 | Report Abuse

http://www.fima.com.my/announcement/Form%2029B(1).pdf

Posted by kcchongnz > 2013-03-15 03:17 | Report Abuse

The 1.48m shares bought by Subur Rahmat is definitely a cumulative amount over a period of time. I always think that if the major shareholders keep on buying the shares, there could only be one good reason; that they opine that the share price is under-valued. Who knows about the company better than the major shareholder cum the management? If I remember correctly, there is one forumer here named Najib Zamry who mentioned that a well known US funds (Templeton Emerging Market fund managed by Mark Mobius?) have been nibbling on this stocks too. I have not verified this. Hope someone in the know can throw some light. There are also cases which the management of the company keeps on saying the share price is undervalued and carries out share buyback with the limited cash available in the company but behind the back the major shareholder keeps on unloading his personal shares. This happens all the time in Bursa. So for small retail investors like us, you really have to do some homework to see which is the case here, is the stock really undervalued etc? Opportunity or threat, you have to take your own responsibility.

Posted by gark > 2013-03-15 09:45 | Report Abuse

There are 2 controlling shareholders in Kfima.

BHR enterprise - 56%, two Basir sister & Puan Sri Basir. (Controlling shareholder). The two Basir sisters are the director of the company.

Subur Rahmat - 7%, Belongs to the WIFE of the Basir brother who is not a director of the company. Subur Rahmat has been continuously raising the stakes from <2% in 2010, 3% in 2011 and now up to 5% in 2012 and now up to 7%.

Interesting...

Posted by gark > 2013-03-15 09:46 | Report Abuse

Oh there is someone doesn't know about Kfima...

Puan Sri only have 1 share, but that share is a super preferred which can VETO any board decisions....

Posted by Najib Zamry > 2013-03-15 09:54 | Report Abuse

sabar sabar dan sabar and you will laugh all the way to the bank...

Posted by kcchongnz > 2013-03-15 09:59 | Report Abuse

gark, excellent information. This guy gark knows so much about Kfima. Of course happy to see this Najib back here. Somehow I always trust this NZ. Hope he doesn't bring us to Holland.

Posted by Najib Zamry > 2013-03-15 11:42 | Report Abuse

KCCHONG NZ, dun trust me as I can be a crook. Unless you believe that Kfima's NTA stood at 2.22 and the company is sitting at huge cash pile of RM250 million is fake, otherwise I can say that it will be another MBF Holdings in the making.

Posted by Najib Zamry > 2013-03-15 11:49 | Report Abuse

Look at stock pattern for DKSH,Pos Malaysia, Oriental Holdings,Glomac and this will happen to Kfima too.

Posted by necro > 2013-03-15 11:55 | Report Abuse

Huh?
Well glomac next tp 1.12..
Its flattttttt now...

Posted by kcchongnz > 2013-03-15 12:43 | Report Abuse

NZ, yeah you could be a crook. You go hiding very often. Ah, just kidding. Actually what attracts me is not its NTA, 250m cash, corporate exercise and whatnot. What attracts me about Kfima is its ability to produce huge amount of free cash flows. This FCF would have been able to sustain its business with the same profitability without having to leave the cash of 250m in its balance sheet. Meaning that Kfima could distribute all its 250m cash to its shareholders (yes, this cash is important), and still earn enough cash each year for regular dividends, buy some investments etc after maintaining its capital expenses for growth.

Posted by aunloke > 2013-03-15 12:57 | Report Abuse

NZ just keeps quiet only but he reads the thread if not he would not answer promptly when Gark hit the right info. Anyway most of us here have faith in this stock, I'm sure it won't disappoint us, cheer !

Posted by gark > 2013-03-15 13:29 | Report Abuse

Also encouraging that the CEO is not the owner of the company. He is being paid to run the company professionally 9to the tune of 1.5 mil p.a). If does not increase shareholder value, the Basir family is going to fire his @ss.

So the major shareholders and minority shareholders' interest are both aligned... very rare we have company the CEO who is not a majority shareholder.

Posted by Fat Cat Tim Buddy > 2013-03-15 14:02 | Report Abuse

lim guan eng have 3000 shares of kfima . ha ha haha..

Posted by gark > 2013-03-15 14:12 | Report Abuse

Wah fat cat... 3000 shares also you know? Where you find :P

Posted by oldman > 2013-03-15 14:17 | Report Abuse

gark and Fat cat, it is good time to load more at 1.85?

Posted by Fat Cat Tim Buddy > 2013-03-15 14:17 | Report Abuse

DAP they got this clean policy, so they have to post their wealth.

i read it on a dap facebook page.

Posted by Fat Cat Tim Buddy > 2013-03-15 14:19 | Report Abuse

lge he also got some share of drb-hicom, but all of the holding is basically ‘师奶数’ 3-5k shares only. lol..

Posted by oldman > 2013-03-15 14:22 | Report Abuse

the recent highest 1.90 then fall back.

Posted by oldman > 2013-03-15 14:28 | Report Abuse

All the heavyweighs in this forum seem to fancy this counter. For a good reason, I believe.

Posted by Fat Cat Tim Buddy > 2013-03-15 14:45 | Report Abuse

oldman, nobody gonna give u buy call or whatever, because if it went down, you will blame us.. lol , but nonetheless , kfima is a good and above average company, that's all i can say.

Posted by oldman > 2013-03-15 14:50 | Report Abuse

whatever given to me, is at own absolute risk/ liability. I know the golden rule....you dont earn any $$ for my gain. Thanks.

Posted by mogul88 > 2013-03-15 14:51 | Report Abuse

guys, any similar counter like kfima around? been searching high and low for one with similar characteristic... thanks in advance

Posted by oldman > 2013-03-15 14:55 | Report Abuse

maybulk, any views, guys?

Posted by oldman > 2013-03-15 14:56 | Report Abuse

From 1.31 to 1.50-1.60 lately. More rooms to expand?

Posted by JimYeoh > 2013-03-15 14:56 | Report Abuse

Magni

Posted by mogul88 > 2013-03-15 14:58 | Report Abuse

oldman, its revenue is getting lesser every year. quite the opposite of kfima actually.. thanks for sharing though

Posted by mogul88 > 2013-03-15 15:03 | Report Abuse

jimyeoh, magni is good.. but volume a bit too low don't you think. offloading might be a difficult for whatever reason... my2c

Posted by oldman > 2013-03-15 15:08 | Report Abuse

Any thoughts to share on policitcal impact on kfima due to coming GE ?

Posted by gark > 2013-03-15 15:11 | Report Abuse

Don't buy....:P

Posted by JimYeoh > 2013-03-15 15:17 | Report Abuse

mogul88, PRKCORP another option..

Posted by Fat Cat Tim Buddy > 2013-03-15 15:20 | Report Abuse

actually i kind of skeptical about kfima, 1st , the manufacture business of government ' confidential document ' ?

what kind of confidential document is it actually? is it crony link business?

apart from this, it annual report does not state out what is their % holding on their subsidiaries and associated company.

i download their annual report from 2007 to the latest 1, and still cant find any info of it, this show how ' professional ' the company management really is.

and last but no least, kfima website look like a cheap late 90 porno website design, no offense , but it really is..

i guess, the statement above just reflect how much confidence i have on the company, although the number look good, but hey, detail is the devil.. :)

Posted by necro > 2013-03-15 15:23 | Report Abuse

Agree with Fat Cat...
Kfima website sUcKs...

Posted by mogul88 > 2013-03-15 15:25 | Report Abuse

JimYeoh, thanks. financials looks good at glance, will study in detail. its similar to SBCCORP. any comment guys?

Posted by oldman > 2013-03-15 15:56 | Report Abuse

haha.

Posted by oldman > 2013-03-15 16:00 | Report Abuse

Wah. Complete info.

Posted by gark > 2013-03-15 16:01 | Report Abuse

Fat Cat,

Security documents - Birth cert, Death Cert, Marriage Cert, Passport, Visas, Driving License, Government Certificates, University Certificates, Government Secret Reports, Government/GLC reports, Malaysian budget books, law books.

Also a 20% owned subsidiary Geisecke & Devrient prints Malaysian currency at it's secured Shah Alam plant.

Enough printing for you?

The annual reports list ALL it's subsidiaries and holding company (page 123-126, AR 2012), major ones (not 100% held) is the following :-

1. PT. Nunukan Jaya Lestari - 40k plantation & palm oil mill - via fimacor 95% (effective 48.7%)
2. Amgreen Gain - 5k plantation in bintulu - 52%
3. Marushin Canneries - sardine & tuna - 38%
4. G&S -via fimacor 20% (effective 11.9%)

Posted by gark > 2013-03-15 16:03 | Report Abuse

oh.. they also print bank personal cheques and cashiers' cheques...

Posted by gark > 2013-03-15 16:04 | Report Abuse

And yeah... the website sucks...:)

Posted by oldman > 2013-03-15 16:05 | Report Abuse

Traditional & conventional style...wont go wrong.

Posted by gark > 2013-03-15 16:08 | Report Abuse

Again.. please don't buy this stock.. :)

Posted by kcchongnz > 2013-03-15 16:09 | Report Abuse

I also agree with fei mau, Kfima website sucks! Like porno ah? Some more like late 90s. How you know one? Why no naked women one? Aiyah, thinking about the nature of its business, is the prettiness of a company website for Kfima that crucial meh? Make money enough loh!

Confidential (and security) document? Money, bank cheques, forms and document used by security companies, etc? Why crony link business?

No % holding stated in their subsidiaries in their website? fei mau, you very serious in investment already loh. You asked about this at least three times already oh. I remember the last time you only interested in earnings (don't care if it is real or not) and must pay good dividends. Good on you. Yeah lah, hopeless lah, not shown in the company website. But is it a statutory requirement to have that? It is a statutory requirement to be reported in their annual reports. Go find out there lah. It is in note 38, 39 of the supplementary information in the annual report.

Yeah lah at least you recognize the numbers look good. That is what we want, isn't it?

Posted by oldman > 2013-03-15 16:15 | Report Abuse

market friday mood again. tend to be cautious as GE is imminent.

Posted by oldman > 2013-03-15 16:17 | Report Abuse

Anyone into cypark?

Posted by Fat Cat Tim Buddy > 2013-03-15 16:34 | Report Abuse

wow.. thx gark for the info, appreciate that, the info it there, i never realized it, i guess this is because the presentation is lousy? just like it website design?

im just a ordinary investor, so please make everything more simplify and readable like this http://www.berjaya.com/images/berjaya-corporation-corporate-chart.gif ? or this http://www.ppbgroup.com/images/1_4_5_corpstructure.jpg ?

why the hell the info is at financial statements instead of ' group structure '? it suppose to have a group structure section. :/