Posted by ran777rpt > 2017-01-27 13:23 | Report Abuse

So, we pray that the deal will take off.

Posted by ran777rpt > 2017-01-27 13:25 | Report Abuse

And today it slided to 17.5cents

Posted by ran777rpt > 2017-01-27 20:41 | Report Abuse

This article first appeared in The Edge Malaysia Weekly, on January 16 - 22, 2017.


FOOL me once, shame on you; fool me twice, shame on me. In most cases, investors have only themselves to blame when market manipulators, front runners and insiders make hefty gains at their expense.

At last count, 808 public companies were listed on the Main Market of Bursa Malaysia, of which 17 have been classified as Practice Note 17 (PN17) companies. The shareholders are hoping for some white knight to emerge and rescue the beleaguered companies from financial distress.

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But happy endings are hard to come by. Over the years, numerous ambitious plans — from corporate turnarounds to restructuring exercises — have not come to fruition or materialised.

A recent example is Kuantan Flour Mills Bhd (KFM), which disclosed to Bursa Malaysia on Dec 13 last year that Felcra Bhd had expressed an interest in a reverse takeover (RTO), only to find out two days later that the latter had retracted its interest.

The share price of the loss-making flour miller doubled from four sen to eight sen on the day the proposed RTO was announced and continued to climb on Dec 14, reaching 24.5 sen, a 206% increase from eight sen. Following the retraction, the share price tumbled back to eight sen.

But the story does not end there. Two weeks later, KFM said it had signed a memorandum of understanding with Lotus Essential Sdn Bhd on Dec 27 to carry out flour-milling activities and trading of flour and food-related products. Now, many investors are wondering if lightning will strike the same place twice.

According to Datin Ho Choy Meng, president of the Malaysian Investors’ Association (MIA), the share prices of PN17 companies will shoot up when potential suitors appear, allowing many patient shareholders to quickly unload their shares. But others will rush in, snared by hype about the prospects of a turnaround and quick profit.

“When the proposed takeover does not materialise, the new shareholders end up with a load of near-worthless shares. It is a zero-sum game. Thus, it is not a good idea to chase after PN17 companies at the first sniff of a rescue,” she tells The Edge.

Looking at it from a wider perspective, the roller-coaster ride of KFM’s shares last month raises the question of whether PN17 companies should be given more time to seek a new lease of life.

Some quarters opine that Bursa Malaysia should take harsher action against PN17 companies that repeatedly make fruitless announcements. A counter argument is that the stock exchange should not deny them a chance of revival by forcing them to delist.

Note that most companies fall into PN17 status because their shareholders’ funds are less than 25% of their paid-up capital, winding-up action is being taken against their subsidiaries or associated companies, or their auditors have expressed a disclaimer opinion.

Generally, a PN17 issuer is required to submit a regularisation plan to the Securities Commission Malaysia for approval within 12 months of the date of admission into PN17. But companies can request an extension.

Ho points out that as long as the PN17 companies have not been delisted, their listing status still has value. Delisting signifies the death of these companies, and shareholders will lose every sen of their investments.

“PN17 companies welcome sincere suitors with viable business plans to turn them around. But we would not want individuals or syndicates to come in with the sole intention to ramp and dump, cancelling their proposal with a sheet of paper declaring their withdrawal,” she says.

To deter unsavoury incidents, Ho suggests that Bursa Malaysia make it mandatory for potential white knights to pay earnest money into a special account managed by the authorities before declaring their interest.

“The earnest money should be at least 10% of the total initial paid-up capital of the PN17 company, and not the depressed share value.

Just like buying a property, the deposit will be forfeited should the buyer cancel the sale unilaterally. Make it non-interest bearing,” she says.

If the rescue plan proceeds as intended, the initial deposit would become part of the purchase price and be released.

“This may give a lifeline to PN17 companies to get out of their financial predicament while effectively checking the dishonourable intentions of criminal syndicates or even company directors,” says Ho.

On the recent Felcra and KFM episode, Ho urges the regulatory authorities to sift through the recent trading records of the directors and their associates.

“They should tell the public if anyone has engaged in any front-running, insider trading or market manipulation,” she stresses.

She, however, lauds the timely act of KFM board in revealing to Bursa Felcra’s interest in the group.

“As a responsible corporate entity, material information received should be disclosed, but if there is an intention to mislead the investing public, then it is a serious.

Posted by Penang_lang > 2017-01-27 21:59 | Report Abuse

http://www.theedgemarkets.com/my/article/should-pn17-firms-be-delisted-sooner-later

Posted by NorthernStar > 2017-01-29 15:04 | Report Abuse

Invest in stock market depend on how you read the market with information you gather.
Some will feel negative but other are confident.
Always do you own homework and make your own decision.
Nobody to blame if thing go wrong because it is the risk you prepare to take.

Posted by chompks > 2017-01-31 08:56 | Report Abuse

This is gone case

Posted by ran777rpt > 2017-01-31 09:54 | Report Abuse

Not yet, still got hope.

Posted by ran777rpt > 2017-01-31 13:23 | Report Abuse

NorthernStar, pls update any news.

Posted by cruz > 2017-01-31 17:04 | Report Abuse

watch Wintoni also will sudden rocket up like KFM to 17cts if Wintoni finds a suitor

Posted by NorthernStar > 2017-02-01 08:11 | Report Abuse

ran777rpt, can share too much becos it will affect RTO. KLSE is a small market and ask around can get a lot of information. Tips: go to Kajang!

Posted by ran777rpt > 2017-02-01 14:02 | Report Abuse

Don't know what Kajang tip to do with this. Pls inkle further NorthernStar

Posted by BaoFaCai > 2017-02-01 15:40 | Report Abuse

Kajang?
Any good news?

Posted by JackMa123 > 2017-02-01 15:59 | Report Abuse

http://cdn1.i3investor.com/my/files/dfgs88n/2017/01/31/1485760554-1695023433.pdf

Posted by BaoFaCai > 2017-02-01 16:49 | Report Abuse

http://nuclearmanbursa.blogspot.my/2016/12/kfm-bhd-mou-be-good-john-ny.html

Posted by ran777rpt > 2017-02-02 07:21 | Report Abuse

Today it should trend higher to 22cents.

Posted by BaoFaCai > 2017-02-02 07:45 | Report Abuse

There is a spelling error in nuclearmanbursa blog with "MUDA-jaya". ;)
Thank you Northernstar for your tip.

Posted by NorthernStar > 2017-02-02 13:38 | Report Abuse

3883 - Luck 4D Number.

Posted by maunkulopdollah > 2017-02-03 02:24 | Report Abuse

Still having peoples spreading the rubbish news..hihi

Posted by BaoFaCai > 2017-02-03 08:51 | Report Abuse

Wow!

Posted by NorthernStar > 2017-02-03 09:42 | Report Abuse

The new boss know Rubbish = Gold and going to take it to the new level.

Posted by NorthernStar > 2017-02-03 09:44 | Report Abuse

http://www.jobstreet.com.my/en/companies/445411-earthwise-resources
Focus on the name and oversea business. He is a dynamic boss with many business. Now want to share by creating shareholder value!

Posted by maunkulopdollah > 2017-02-03 10:44 | Report Abuse

Haha..korek emas ka..an old tactic of listing companies without business...haha

Posted by eason10 > 2017-02-03 11:45 | Report Abuse

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5329341

Posted by eason10 > 2017-02-03 11:45 | Report Abuse

PLS READ AND BUY BEFORE TOO LATE

Posted by maunkulopdollah > 2017-02-03 11:53 | Report Abuse

Still dont have black and white frm bursa for extension?..this is gambling yr money..be careful guys!

Posted by eason10 > 2017-02-03 12:05 | Report Abuse

u are stupid.... Bursa will approve unless there is no valid reason for it.

Posted by maunkulopdollah > 2017-02-03 12:32 | Report Abuse

Are u bursaman?..or u are the oppoturnist which already caught trapped in powder of flour...haha

Posted by cruz > 2017-02-03 12:34 | Report Abuse

fly high sky

Posted by maunkulopdollah > 2017-02-03 12:37 | Report Abuse

Ask people buy for yr selling..this expired flour..sudah x boleh buat roti..haha

Posted by ran777rpt > 2017-02-03 13:24 | Report Abuse

Wherever you go, you always say negative, but yet the stock price will go up. An example- Reach Energy. Now you are here and still negative. So i take this omen to be good and the price shall shoot up contrary to your comment. hi hi hi

Posted by maunkulopdollah > 2017-02-03 14:44 | Report Abuse

Luv to hear it..what a pity the lifetime of this counter itself like the egg on the thorne..let the smokes going down first and u will see the clear picture..and the later decision will be more realistic instead of create a bias and blur justification...

Posted by eason10 > 2017-02-03 14:44 | Report Abuse

maunkulopdollah, you should go away, don't stay here talk stupid thing. Really not understand if you look down at this counter, why you are here? go to find other counters

Posted by ran777rpt > 2017-02-03 15:02 | Report Abuse

Actually I am really laughing now out of my lungs when you say that this counter is like egg on the throne. We come here to take risk hoping good may happen to this counter, susah mahu cari makan boss,

Posted by maunkulopdollah > 2017-02-03 15:05 | Report Abuse

U should have a sense of responsibility when asking the peoples to buy this counter..just reminder of mine for the rest and not for a fanatic enough who will never heard what other people tries to remind ..just remind again..the company wihout uncertainty hardcore business is a devil of money sucker...hihi

Posted by ran777rpt > 2017-02-03 15:08 | Report Abuse

i am not encouraging any one to buy.It is purely flashing of news which I obtain from sources like newspaper, blogs etc

Posted by eason10 > 2017-02-03 15:27 | Report Abuse

shut up la, maunulopdollah. What are you talking about? Sense of responsibility . All are here to earn money. Don't talk rubbish, u are really rubbish!

Posted by eason10 > 2017-02-03 15:28 | Report Abuse

now it's rebounding, I want to see what you say again. see is same or similar rubbish statement or not.

Posted by NorthernStar > 2017-02-03 17:54 | Report Abuse

This is a -NTA company and some white knight with cash going to support the future growth and shareholder not interested. It is a good time to accumulate and see rubbish turn into gold. Current L.. boss already retire last Sept and put two representatives in the board. How can the shareholders sleep without some new fresh fund to startup the business. The new boss is dynamic and such business is none compare to other businesses he current have like coal, starch, .....(some more but not going to say, hehe...) and even rubbish that he turn into GOLD. Who have a better leadership!

Posted by sengkee > 2017-02-03 21:16 | Report Abuse

Why its external auditor gave qualified independent auditor's report? Next Monday will gap down?

Posted by jayalbert > 2017-02-04 10:47 | Report Abuse

Looks like it

Posted by NorthernStar > 2017-02-04 14:32 | Report Abuse

Change of dynasty on the way. What can the external auditor do and likely to advise the board to windup. KFM need a white knight to turn around. If gap down then add more.

Posted by MrPauper > 2017-02-04 15:45 | Report Abuse

Yeah, add more and go broke faster !

Posted by MrPauper > 2017-02-04 15:45 | Report Abuse

The life of a gambler !

Posted by cruz > 2017-02-04 16:39 | Report Abuse

KFM is PN17, so this auditor reports nothing surprise.......in fact now it has found a new rescuer as in Lotus.

Posted by limch > 2017-02-04 17:11 | Report Abuse

Even China counters(eg Xinghe) not that worse(no PN17 etc).

Posted by sengkee > Feb 3, 2017 09:16 PM | Report Abuse
Why its external auditor gave qualified independent auditor's report? Next Monday will gap down?

Posted by NorthernStar > 2017-02-05 20:22 | Report Abuse

Gambler also need reliable information to win. KFM will exit from PN17 by 2017

Posted by NorthernStar > 2017-02-05 20:28 | Report Abuse

http://www.thestar.com.my/metro/community/2017/02/04/orphans-and-single-mums-get-festive-aid-hulu-langat-mca-hosts-early-cny-celebration-for-90-multirac/

Posted by ran777rpt > 2017-02-05 20:57 | Report Abuse

NorthernStar, what it has to do with KFM anyway?

Posted by ran777rpt > 2017-02-05 21:01 | Report Abuse

Tmrow may gap down, but will hold at 17.5 cents. Surely it is time for Lotus announcement to come soon

Posted by NorthernStar > 2017-02-06 07:25 | Report Abuse

ran77rpt, the new boss (in the 2nd photo) is a very charitable person and help people in need. Already know who is the management when invest in a company. Follow the news closely and you will gain more confident with the new management.