Posted by bjgdila123 > 2014-04-08 08:47 | Report Abuse

Tq jwarren, & noted

Posted by Dodgy > 2014-04-09 21:32 | Report Abuse

I reckon warren is a pretty dodgy name . What a dick!!!!

Posted by Dodgy > 2014-04-09 21:33 | Report Abuse

J warren licks ds

Posted by insearch85 > 2014-04-10 15:11 | Report Abuse

jwarren, you are still here?? i believe you are very capable and well informed...
however, i keep wondering why are you station here "full time" and to focus on Catcha and seen make sure everyone "aware" the negative about this company..and seen like you are being paid to do so...
Absolute investments Australia is just an investor bought 7.5 mil previously and increased to 10 mil shares recently. But what is wrong about the name??
when Catcha was RM0.60+, it was commended as no good, it reached RM0.70+ also commended no good, it went all the way to RM0.90+ also no good.. while many may have made 30-40% gain from the RM0.60+ and got out and yet you are still here saying this counter no good... you make me wonder your purpose here...
have a nice day

Posted by Dodgy > 2014-04-10 19:40 | Report Abuse

Insearch. Well said. It is dodgy here. I think its possible that jwarren was an ex employee of the company and is not happy seeing its success. There is a lot more to come in terms of share price performance. It's not often investors find a gem of a company such as this . My advice is. ALL ABOARD. TOOT TOOT. !!!!!!!

Posted by whkwoon > 2014-04-10 20:44 | Report Abuse

This most importation is that the Company have captured large market share,profit will roll in later, look at DKSH they have the largest distribution network nobody can fight DKSH , 2 years ago below RM1.00 now more than RM8.00 , market share is most importation for any company to survive. Catcha manage to achieve 400% growth rate

Posted by jwarren > 2014-04-11 12:54 | Report Abuse

reply to insearch85:

First and foremost, I think you are decent person who asks valid questions (good traders or investors always ask good questions either to themselves or to others). I will try answer your questions in the best way I could:

i) "full time and to focus on Catcha" - I took interest in Catcha Media because I did owned its shares before, but has since sold them off at a very tiny profit. I did not comment on other stock counters is because I am not familiar with their industries. I am not "a full time person", "a hired hand", "an ex-staff" or "a business competitor". I was astonished by certain target prices bandied around and the justifications for them. I thought I must write something to give a different perspective (and to see how the readers will react to it). Whether you believe it or not, it is entirely your choice.

ii) You could have misunderstood the word "dodgy". A "dodgy" name does not mean something is wrong with the name itself (e.g. the name is too hard to pronounce, cultural insensitive and etc). What I meant by dodgy is the fund does not seems to be a reputable entity with well known track record. Oh by the way, did you realized that the entry of the fund coincide with the market sell down in the related Australian counters?

iii) About traders making money on the counter from RM0.60 to RM0.90. Good for those traders. If you traced back to all my postings about Catcha Media, I have never said trading the counter is a bad idea (but you must know what you are getting into). I always remind the readers of "know why you lose money but also know why you make money". If a reader has read my postings and understood the content and the timing, I believe the reader would have made realized gain (instead of paper gain) by buying/selling before each "new" peak (which almost always followed by a period of lack of volume). To those who believe in "target prices" given by certain parties, did you keep your shares until the target prices are reached? Have you realized your gain? I have wrote before about how these certain target prices were derived based on flimsy arguments.

To those who bought the counter at IPO and still keeping the shares, what's your feeling? I was not an IPO buyer, so I can't answer this question.


reply to whkwoon:

i) Catcha Media grew by 400%? Or are you referring to iCar, iProperty or iBuy?

ii) "Land grab" in the online world is a valid strategy. But do you know that iProperty's main competitor has been profitable for many years. Do you know that iCar's main competitor (cum shareholder) is also profitable for some years? In the online world, sand shifts very fast. Your DKSH example is a good one but not exactly relevant to online businesses. DKSH build distribution networks (physical assets - more CAPEX than OPEX). Nowadays online businesses (for those without genuinely novel and superior technologies just like Catcha type of businesses) mostly expand by having more OPEX rather than CAPEX. CAPEX investments are harder to replicate over night but not so for OPEX. CAPEX can be still monetized but OPEX is almost a wash down the drain. In many online businesses, once the cost of acquisition is too high with no comparable monetization in sight, the business is bound to fail in the long run.


About Dodgy:

1) Dodgy is an interesting contributor. He contributed just three postings throughout his membership (by the way he is member for less than a week). These three postings were above. I am sure you are aware of his intention which were very clearly to spew profanities and nonsense at me. Draw your own conclusions about Dodgy.

Posted by Dodgy > 2014-04-17 15:02 | Report Abuse

jwarren I suggest you get a life......And some Catcha shares ..Love Dodgy

Posted by Dodgy > 2014-04-17 16:34 | Report Abuse

Jwarren. I can't stop laughing reading your posts. Please keep doing them. There is nothing better to have an uniformed amateurish comedian keeping us amused as the shares reach new highs due to professional experienced investors valuing the company , judging its experienced management then placing their bets. You my friend have a lot to learn. Stick to the old economy stocks. Much safer and easier for you to understand. But do keep the comments coming. I love them.
Love dodgy.

Posted by whkwoon > 2014-04-17 17:31 | Report Abuse

Today good showing.

Posted by whkwoon > 2014-04-18 10:00 | Report Abuse

Post the SAYS merger, Catcha Media is set to become one of the region’s largest internet media players. Although its share of losses in iCar Asia has been a drag on profitability, the value of its stake in this company is much higher than its own market cap. Hence, we see value in Catcha Media, both in its operations and iCar Asia investment. Maintain BUY, with a revised SOP-derived FV of MYR1.10.

Posted by chiongster1234 > 2014-05-20 22:36 | Report Abuse

alibaba~~

Posted by sotsot1986 > 2014-05-28 19:53 | Report Abuse

Nasdaq already hit 13 year high, but M'sia Tech stock still in sleepy mode.

Posted by hwang112 > 2014-06-17 17:37 |

Post removed.Why?

Posted by sotsot1986 > 2014-06-27 20:48 | Report Abuse

If not mistake is 27.4% stake during april time, had been diluted a bit from here. Now iCar worth AUD300m with the price AUD1.56. But Rev market cap only 130m and 80% share had been hold by top 5 shareholder.

Posted by Dodgy > 2014-07-06 22:07 | Report Abuse

Jwarren. Poor guy. Going to stay poor. Rev just starring to rev up and be valued properly by aim mkt

Posted by Icon > 2014-07-14 09:52 | Report Abuse

today should go up because value of icar Asia increasing.....

Posted by bigturtle2010 > 2014-09-09 00:35 | Report Abuse

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/791F255A3231E33B48257D4D003D47B6/$File/Rev%20announcement_final.pdf

any1 monitored this big news?

Posted by paulthesotong > 2014-09-09 08:36 | Report Abuse

Open price should be 1.39

Posted by csk396 > 2014-09-09 09:05 | Report Abuse

will it limit up again in afternoon session ?

Posted by bjgdila123 > 2014-09-09 12:15 | Report Abuse

dangerous price control anything can happend

Posted by bigturtle2010 > 2014-09-09 12:15 | Report Abuse

any1 has a view on the share price? tp?

Posted by methodmann > 2014-09-09 16:12 | Report Abuse

Found the below links:


https://tenbagsfull.com.au/afi/post/2014/2/25/afi-iscam-reaching-dizzy-heights/9778


http://drbenway.blogspot.com/2014/03/catcha-group-related-party-fraud.html

Catcha Group is a private Malaysian investment company that holds stakes in several loss-making related companies on the ASX, with this cartel inflating incomes and assets with sham related party transactions. The cartel has issued millions of shares based on cooked books. The Catcha Group cartel includes iProperty Group (IPP.AX), iCar Asia (ICQ.AX) and iBuy Group (IBY.AX) on the ASX, as well as Catcha Media Berhad on the Malaysian stock exchange. The extremely poor underlying operational performance of these internet businesses is irrelevant to their use in securities fraud.

The cartel's reported net incomes have been fraudulently inflated by sham related party transactions. In September 2012, IPP sold Indonesian car sales portal Mobil123 to ICQ for scrip, recording a $2.2m book profit on the transaction. Without this related party transaction, IPP would have had twice as large a loss in 2012. In October 2013, IPP sold the ramped holding of ICQ to cartel associate Acorn Capital, making a gain of $5.0m. Without this related party transaction, IPP would have reported a loss in 2013 instead of a maiden profit of $1.7m. The reported net income of IPP is more affected by its sham related party transactions than by its operations, as a statement of fact.

Fund associates of the cartel include Acorn Capital and a group of Australian listed investment companies headed by Australian Foundation Investment Company (AFI.AX). These funds cooperate with the Catcha Group criminals to ramp the tightly held shares of the ASX-listed cartel companies IPP/ICQ/IBY, generating unrealized profits for the funds involved. The fund operators charge real cash fees based on such fraudulently engineered unrealized profits. Since inception, IPP has been ramped 15X and ICQ has been ramped 7X. In the last year alone, IPP has been ramped four times over, ICQ has been ramped three times over, and IBY has almost been doubled.

This leads to commensurate unrealized profits for cartel fund associates AFI, Mirrabooka Investments (MIR.AX), Contango Microcap (CTN.AX) and Acorn Capital. For some of these fraudulent investment companies, this scam alone accounts for a significant proportion of their yearly (unrealized and fraudulent) profit. IPP has now been ramped to the point of inclusion in the S&P ASX 300 index, allowing the criminals to pass off some the junk cartel assets to funds that are mandated to purchase such indices. The annual reports for the cartel companies contains sundry other accounting fraud. In note 23 of its inaugural financial statements, IBY reports the following goodwill for the related party "assets" it purchased in late 2013:

- $23.8m goodwill for Buy Together Hong Kong, an "asset" contributing a $141K loss for the period.
- $40.6m goodwill for Dealguru Holdings, an "asset" contributing a $244K loss for the period.
- $12.1m goodwill for Dealmates, an "asset" contributing a $29K loss for the period.

IBY has total reported assets of $93.7m, with goodwill accounting for $77.6m. But don't worry, in note 12 of the financial statements the IBY directors solemnly declare they have impairment tested said $77.6m of goodwill and found everything in order. The directors do not list the assumptions necessary for reconciling their cash generating units with a $77.6m value, but since IBY's auditor signed off without remark the assumptions must of course be entirely reasonable and non-fraudulent.


What do you guys think? Believable or not?

Posted by JT Yeo > 2014-09-09 16:54 | Report Abuse

Based on announcement, the disposal gain is estimated to be RM210 mil, which 90% will be distributed to shareholders while 10% for working capital.

(RM210 mil x 90%) / Outstanding Shares = RM1.40 per share - Hence the current price jump

In the document, the NTA will stand at RM1.86 after the disposal. The RM1.86 = RM1.40 (to be distributed) + RM0.16 (the 10% working capital) + RM0.20 (pre-disposal assets). So by right, after the distribution, REV share price still worth at least $0.46 based on the NTA. Although NTA is a very crude measurement, given that REV is a media company not a capital intensive nature business. Thus share price might worth more than $0.46.

My own judgement, there are arbitrage opportunity if you can enter below RM1.75 or 1.85. If the price reaches RM1.85 or above, the potential gain would have disappear, although post distribution the share price might appreciate given the bull market now and the fact that REV will report a positive earnings.

Concern:
RM210 mil is only an estimate but shouldn't be that far off. The concern is shareholders approval, which i think will still go through, the whole deal will take at least 3-6 months minimum.

Posted by methodmann > 2014-09-09 18:06 | Report Abuse

Can any sifu comment on the below questions (refer to the Bursa Announcement at below)?:


- The disposal is sure to happen or not? The announcement did not say got a buyer already identified (and no price is fixed). I thought normally, the EGM for any "solid" disposal will have a price and an identified party?

- What if only some of the 27.20% is managed to dispose? What will happen with the unsold portion after one year?

- Today's icar closed at AUD1.35. In the announcement, the assumption is AUD1.54. Wah, dropped so much, why?

- Rev Asia has been selling icar's shares before this disposal announcement. Why for this 27.20% disposal, need to have EGM? I confused.

- If icar has good prospects, why need to sell now? I bought Rev Asia is because I can get exposure to icar at a cheaper cost. Now if Rev Asia sold icar and then return the money to shareholders, I must now buy icar directly at a possibly higher cost if I want to continue to have exposure to icar! Why can't Rev Asia just continue to hold icar longer?



From the Bursa announcement:

The Company proposes to dispose up to 52,500,000 iCar Asia Shares, representing 27.20% of the total issued and paid-up share capital of iCar Asia in the following manner:

(i) in the open market of the ASX (“Open Market Disposal”); or
(ii) off-market disposal to parties other than the Interested Directors and/or Interested Major Shareholders, as defined in Section 10 of this announcement, and/or persons connected to them (“Off-Market Disposal”); or
(iii) a combination of both;

at a price to be determined later. Subsequent to the Proposed Disposal, it is envisioned that Rev Asia will no longer hold any equity interest in iCar Asia. The completion of the Proposed Disposal will be the earlier of the disposal of all iCar Asia Shares held by Rev Asia or a period of not more than one (1) year from the approval received from Rev Asia’s shareholders for the Proposed Disposal at the forthcoming extraordinary general meeting (“EGM”) to be held (“Completion Date”).

The actual number of the iCar Asia Shares to be disposed will be determined by the Board at a later date, subject to amongst others, the prevailing market conditions and the share price of iCar Asia. In addition, the Proposed Disposal may be implemented in tranches or one-off via the Open Market Disposal or Off-Market Disposal or a combination of both. As the Proposed Disposal may be implemented in tranches, there could potentially be several disposal prices.

AND

The disposal price for the iCar Asia Shares will be determined by the Board at a later date and based on a willing buyer-willing seller basis, taking into consideration:

(a) the private placement undertaken by iCar Asia to place out 7,179,240 iCar Asia Shares to carsales.com Ltd at a price of AUD1.00 per iCar Asia Share as announced by iCar Asia to the ASX on 5 March 2014; and
(b) the appreciation of the market price of iCar Asia Shares during the past one (1)-year. As at 22 August 2013, the closing price of the iCar Asia Shares was AUD0.61, while the five (5)-day volume weighted average market price (“VWAMP”) of iCar Asia Shares up to and including the LPD was AUD1.54.

The price of iCar Asia Shares has increased approximately 2.52 times during the past one (1)-year and has increased approximately 7.70 times since the iCar Asia Listing Date.

Notwithstanding the above, the Board may at its discretion proceed to dispose the iCar Asia Shares at a disposal price below the prevailing market price of iCar Asia Shares at a discount of not more than twenty-five percent (25%) to the ten (10)-day VWAMP of iCar Asia Shares.

Posted by Crecimiento > 2014-09-09 19:39 | Report Abuse

Hello, methodmann

My answers to your concerns

1) I think the disposal is pretty much a done deal (99%, 1% failure is due to market crash which could put the deal on hold), they do not announce the price simply because they may not dispose the entire 27% to 1 single party. So average price is unsure. Top 30 shareholders control 95% of the co, so I don't need to tell if egm will pass the resolution or not. Rest assured, the stake wouldn't be disposed to existing directors and major shareholders as stated in the announcement, so price will be the best price under the arms length basis.

2) for them to announce in advance of the disposal, I believe management has ready interested parties in the waiting list. Worse case is to slowly sell in the open market if no one take up the remaining shares. But major shareholder wouldn't be so stupid to dump the shares which lead to market overhang (because Catcha group still owns 9% direct stake). Bear in mind all growth indicators for iCar is very positive. This is the reason why Australia investors so bullish about it

3) today iCar's share price weakness was mainly due to short term market concern on rev selling in the open market. As I said, they wouldn't do it because this is not at their interest. Furthermore, this is existing shares which will not dilute iCar's shareholders interest. I would think iCar's second largest shareholder, Carsales.com (22%) will see it as a golden opportunity to buy a controlling stake in iCar. In most of cases, controlling stake deserves a premium to market price

4) rev has never dispose any single shares of iCar since it's IPO 2 yrs ago. The declining stake is basically due to dilution effect from new shares issued. So for them to sell the jewel of the co now, surely need shareholders approval. Lastly, as I mentioned in my article, since Malaysia market doesn't appreciate iCar biz due to start-up loss making, it makes perfect sense to unlock the value of iCar in Rev. Thereafter, you will see a healthy rev with profitable digital media biz. If you really so keen on buying iCar, it is better for u to buy the co directly, since u will be given back the money on iCar disposal.

ST target price is 1.86

Posted by bigturtle2010 > 2014-09-09 21:18 | Report Abuse

Dear methodmann,

My 2 cents opinion are as following:-

1) Agreed with Crecimiento, slim chance for it not being able to procure shareholders' approval.

2) it requires an EGM because its deemed a major disposal. Hence, an EGM is required. Can refer to the Announcement.

3) Agreed with Crecimiento, the downward pressure on icar's shares are mainly/presumably due to the market's concern on the disposal in "open market". However, the disposal by Rev may be implemented in tranches to interested parties if it wises to and if it does, it will give lesser impact on icar's share price.

4) Form the fundamental point of view, icar has not been profitable in the past (can see from the annual report of Rev). Hence, this disposal produces the opportunity for Rev to deconsolidate the losses from this associate comp from its P&L, Hence, giving more EPS to the company on profoma basis. Rev has an escrow agreement with icar shares which restricted itself to deal with icar shares until 11 September 2014. Hence, it proposes to dispose.

TP: RM 1.75

Being RM1.55 (guaranteed return) + RM0.30 (catcha business)

Posted by bigturtle2010 > 2014-09-09 21:19 | Report Abuse

Being RM1.55 (guaranteed return) + RM0.20 (catcha business)***

Posted by reader2018 > 2014-09-09 21:22 | Report Abuse

Crecimiento has written good article on REV on 2 Sep. Those of you missed it is like missed a jackpot!!

Posted by methodmann > 2014-09-09 21:56 | Report Abuse

Thanks sifu Crecimento for your answers. I only invested a very small amount in Rev Asia without doing any studies. But because now need to decide to stay or cabut, have to do studies lah. I come across this forum when doing studies.

1. About the announcement, I still dont understand (sorry I am not a finance man so dont understand alot of corporate takeover) why can't Rev Asia disclose the buying parties and the prices if the deal is very solid. Don't know how to vote in EGM because if vote agree is like giving the board the right to do the deal without knowing what the final deal is all about. What if market price is AUD1.00 or AUD0.70, because the board can still sell as low as 75% of market price.

2. Carsales bought at AUD1.00 in March this year, will it buy at AUD1.54 only after 6 month? iCar is still losing money. I hope they will, then I can make money lah haha. What I scare is Carsales will wait for it to drop back to around AUD1.00 and then only buy. In this case, I cannot make alot of money.

3. The first half of this year will be losing money if without iCar contribution to the profit. I check this financial result and found that their social media business is only have 15% margin but when they takeover the social business of says.com, the margin was nearly 40%. Why drop? I also very scare when I see the company only have cash of 900k. My mind was thinking why not sell like 5% in iCar and get some cash into Rev Asia and then push up the Rev Asia business. This way, when iCar reach full potential Rev Asia can also reach full potential. Rev Asia shareholders can get two winners!

4. What is your thinking of these two links (i put on top before)? I get worry whether the issues are genuine or not.

https://tenbagsfull.com.au/afi/post/2014/2/25/afi-iscam-reaching-dizzy-heights/9778

http://drbenway.blogspot.com/2014/03/catcha-group-related-party-fraud.html

thank you sifu.

Posted by Crecimiento > 2014-09-10 12:00 | Report Abuse

Hi, methodmann

1) rev didn't disclose the interested buyers, perhaps they are still in talk with regards the selling price. If the buyers are listed co, they would required to make announcement on their side if their names were disclosed in the announcement. So it is understandable why no names were mentioned in the announcement. Then u would probably wonder why they announce the intention to sell prior getting the committed buyers? I do not know for sure, but it could be requested by Bursa to avoid insider trading after the board firmed up the decision.

2) with regards to the selling price, it is really everyone wild guess. Carsales.com is a solid co (superb profitable being a role model to iCar) and their last purchased was AUD1.00 at March 14. As I said, this 27% if sell to Carsales will bring its stake in iCar to 49.9%, simply buy some shares in the market, Carsales can consolidate the iCar into the group. FYI, the reason for Carsales to buy iCar is their first mover advantage in the fast-growing ASEAN market, namely M'sia, indon, and Thailand. The losses impact to Carsales is neligible, but the growth potential is tremendous. This could justify higher price for iCar 27% stake as compared to its march purchase

3) the digital media biz see margin compression lately due to 18% revenue contraction in 6mfy14. Apparently the sales response has lost its steam and required more innovative sales strategy to push through the bottleneck. Buying an online biz is really about the trust on management's capability. The cycle is very volatile and u just need to have faith on them to come back when the biz encounters short term set-back...

4) with regards to the accusation of fraud on Catcha group, I think this is a norm for the online biz, given that most online biz burn cash like hell during the early years to gain clear market leader position in the specified field. So this always lead to skepticism during the early years. To buy an internet stock, one really needs to have long foresight on its forte and trust the ppl who runs it. Unfortunately retailers like u and me will have no privilege to know them. My advise to u is, if u don't feel comfortable with the management, the best investment strategy is not to invest in such a co.

Posted by JT Yeo > 2014-09-10 12:56 | Report Abuse

Hi Crecimiento, just curious what are your plans regarding this? Did you cash out or planning to see it through until after the distribution?

Posted by shlyw > 2014-09-10 16:14 | Report Abuse

http://www.nanyang.com/node/648098?tid=704

Posted by shlyw > 2014-09-10 16:36 | Report Abuse

Now that the price is worth buying

Posted by Crecimiento > 2014-09-10 18:11 | Report Abuse

Hi, Yeo

I will hold until they realize the disposal.

Posted by JT Yeo > 2014-09-10 19:12 | Report Abuse

Hi Crecimiento, thanks. Was a bit surprised and down knowing the closing price because I bought higher but I hope I didn't make any miscalculation.

Posted by 860000 > 2014-09-10 22:13 | Report Abuse

dun worry so much.

Posted by alphajack > 2014-09-10 23:13 | Report Abuse

1.60 again soon

Posted by Crecimiento > 2014-09-10 23:24 | Report Abuse

Yeo, if u r buying rev because of iCar, u shouldn't be too worry. Today poor performance was mainly due to iCar share price tumbled to as low as 1.19 before rebounded to 1.33. If iCar share price regains it's lost ground in the coming weeks then rev shall follow.

Posted by JT Yeo > 2014-09-11 06:23 | Report Abuse

Hi Crecimiento, yea thanks because i keep thinking why the market is saying REV worth 183mil (at RM1.36) when the disposal is already 210mil gain and that is on top of the business itself? Doesn't make a lot of sense

Posted by 860000 > 2014-09-11 09:15 | Report Abuse

actually the price 1.5xx included the Rev Asia recorded losses in icar business. The 5 days average price mentioned in Bursa actually just 1.4xx AUD. If current price of icar 1.3xx, it is only about 10% lesser gain.

Posted by CleverBoy > 2014-09-11 12:29 | Report Abuse

Hey Crecimiento, thank you for the deep insights on Rev. Must say you have done deep research
on the stock. So while people are waiting on this one, WHAT OTHERS is on your radar for big moves. Would you mind sharing with the view that perhaps some of us can jump on the bandwagon early. Thank you.

Posted by EpicMalaysia > 2014-09-11 13:02 | Report Abuse

Today ‪KLSE‬ Live Stock Recommendation at 09.30 AM

✔ KLSE BUY REV ASIA ABOVE 1.350 TG 1.380, 1.410, 1.460, SL 1.300.

Both Target Hit.

Posted by methodmann > 2014-09-11 13:56 | Report Abuse

Hi Sifus, thank you for opinions. I done alot reading. Now I become more worry. Better to take profit or to maintain? Tension ah. Hope sifus can comment.

1. Price of Rev Asia is still below RM1.39. Why people dont jump into it? Volume is also not high.

2. Why the major shareholders dont privatize it earlier at below RM1.00 if they know the 27% in iCar can be sold very soon? The market never appreciate it anyway, so the major shareholders should have no problem to privatize it.

3. Hi Creciminto, you said "...with regards to the accusation of fraud on Catcha group, I think this is a norm for the online biz, given that most online biz burn cash like hell during the early years to gain clear market leader position in the specified field. So this always lead to skepticism during the early years..". I still feel not so comfortable because this website (http://drbenway.blogspot.com/2014/03/catcha-group-related-party-fraud.html) dont just critize iCar only. They critize other industry also. Thats why they are not likely to critize Catcha just because Catcha do internet business.

4. Why Rev Asia want to sell iCar is because second hand car business in Malaysia is going to suffer teruk teruk very soon? I remember reading that loan approval for second hand car in Malaysia is like 60% reject. Better sell iCar when the price is still high?


To make 45% and cabut or to maintain to make 90%? Any ideas, sifus?

Posted by JT Yeo > 2014-09-11 18:43 | Report Abuse

Just my opinion, I am not exactly sure why no one is jumping on it, either most people are traders or most never really do any in depth studies.

I think the reason that Rev sell their investment has nothing to do with the business performance of iCar.

From my understanding, example like Carlist.my in Malaysia, their strategy is grabbing market share first, charge listing fees after. It is similar to how Jobstreet can monopolized the job ads market, once the business reaches a certain scale that create network effect, buyers and sellers become so reliant on the website platform that it becomes impossible to switch. That's why carlist is keeping it free for sellers at the moment to gobble up as much market share they can before they start charging a listing or transaction fees.

Which is also why iCar shares are so red hot in Australia. Many people miss out the opportunities to buy Seek.com.au - Job ads leader in Australia; Realestate.com.au - Property leader in Australia; Carsales.com.au - Automobile ads leader in Australia; iProperty - Property leader in Malaysia, SG etc, that's why they know iCar has immense growth potential. Similar to iProperty, both haven't been making much money and still incur losses but the market are putting really high hopes on them.

Posted by stink > 2014-09-11 19:50 | Report Abuse

http://drbenway.blogspot.com/2014/03/catcha-group-related-party-fraud.html

Posted by stink > 2014-09-11 19:52 | Report Abuse

Catcha Group related party fraud
Catcha Group is a private Malaysian investment company that holds stakes in several loss-making related companies on the ASX, with this cartel inflating incomes and assets with sham related party transactions. The cartel has issued millions of shares based on cooked books. The Catcha Group cartel includes iProperty Group (IPP.AX), iCar Asia (ICQ.AX) and iBuy Group (IBY.AX) on the ASX, as well as Catcha Media Berhad on the Malaysian stock exchange. The extremely poor underlying operational performance of these internet businesses is irrelevant to their use in securities fraud.



The cartel's reported net incomes have been fraudulently inflated by sham related party transactions. In September 2012, IPP sold Indonesian car sales portal Mobil123 to ICQ for scrip, recording a $2.2m book profit on the transaction. Without this related party transaction, IPP would have had twice as large a loss in 2012. In October 2013, IPP sold the ramped holding of ICQ to cartel associate Acorn Capital, making a gain of $5.0m. Without this related party transaction, IPP would have reported a loss in 2013 instead of a maiden profit of $1.7m. The reported net income of IPP is more affected by its sham related party transactions than by its operations, as a statement of fact.

Fund associates of the cartel include Acorn Capital and a group of Australian listed investment companies headed by Australian Foundation Investment Company (AFI.AX). These funds cooperate with the Catcha Group criminals to ramp the tightly held shares of the ASX-listed cartel companies IPP/ICQ/IBY, generating unrealized profits for the funds involved. The fund operators charge real cash fees based on such fraudulently engineered unrealized profits. Since inception, IPP has been ramped 15X and ICQ has been ramped 7X. In the last year alone, IPP has been ramped four times over, ICQ has been ramped three times over, and IBY has almost been doubled.



This leads to commensurate unrealized profits for cartel fund associates AFI, Mirrabooka Investments (MIR.AX), Contango Microcap (CTN.AX) and Acorn Capital. For some of these fraudulent investment companies, this scam alone accounts for a significant proportion of their yearly (unrealized and fraudulent) profit. IPP has now been ramped to the point of inclusion in the S&P ASX 300 index, allowing the criminals to pass off some the junk cartel assets to funds that are mandated to purchase such indices. The annual reports for the cartel companies contains sundry other accounting fraud. In note 23 of its inaugural financial statements, IBY reports the following goodwill for the related party "assets" it purchased in late 2013:
$23.8m goodwill for Buy Together Hong Kong, an "asset" contributing a $141K loss for the period.
$40.6m goodwill for Dealguru Holdings, an "asset" contributing a $244K loss for the period.
$12.1m goodwill for Dealmates, an "asset" contributing a $29K loss for the period.
IBY has total reported assets of $93.7m, with goodwill accounting for $77.6m. But don't worry, in note 12 of the financial statements the IBY directors solemnly declare they have impairment tested said $77.6m of goodwill and found everything in order. The directors do not list the assumptions necessary for reconciling their cash generating units with a $77.6m value, but since IBY's auditor signed off without remark the assumptions must of course be entirely reasonable and non-fraudulent.
Posted by Dr Benway at 08:04

Posted by tpguava > 2014-09-11 19:52 | Report Abuse

with regards to what JT Yeo says, it only applies when there isn't such a monopoly service already in the first place. the idea of icar would work maybe 5 to 8 years ago, but not anymore.

this is because the used car classifieds market in malaysia "tutup" long ago by mudah.my for online and motortrader for print. just go down to the used car dealers and ask them which classifieds gives them real leads.

Posted by tpguava > 2014-09-11 19:54 | Report Abuse

for thailand, taladrod and one2car has 'closed' the market, you can see icar's thaicar.com traffic going nowhere. for indonesia, the monopoly service is OLX and a few others, mobil123 is nowhere. furthermore, rocket internet (zalora, lazada) has already penetrated the other asean countries and had a head start. i believe this is the real reason catcha is cashing out.

Posted by JT Yeo > 2014-09-11 20:06 | Report Abuse

Hm but mudah.my is a bit like craiglist in US, there are a few filters but generally not as robust or as more 'focused' compare to other pure car sites, remain to be seen if market share can be taken away from them. I do keep track of the numbers of cars available for sale on sites like carlist, mudah, autoworld etc as a rough measure of market share, seems like carlist has the highest number of cars for sale.