Wednesday, February 4, 2015

Lay Hong: The best form of defence is "Private Placements"

Time and time again we have seen that private placements have been misused. It can be issued to people you know but not related, your friendly party. It can also be a tool to be used for yourself by having shareholders as proxy. On top of that it is issued at discount (10%), in the name of hard to place out large quantities if it is not issued at discount.

Note that, I am not supporting either QL or the controlling shareholder of Lay Hong.

We know that QL Resources is having a go at Lay Hong by offering a General Offer for the shares of Lay Hong to minority shareholders. It has been acquiring Lay Hong shares at below RM3.45.

Based on the above, QL has acquired close to Lay Hong's controlling shareholders stake of around 43%.

What does the current management do in defence? Well, through private placements and director's shares options scheme - up to 45% that is (See below). Imagine how much dilution could QL's shares be affected?

Proposal by Lay Hong
See below on the approval - it will need to have approval from shareholders. Now, minority it seems is the king maker in this case i.e. the 15.42%.

Now, the case gets interesting. Would QL up the ante by offering the GO at even higher price just to make the acquisition pricey?

Tuesday, January 27, 2015

John Bogle on BFM

John Bogle, former CEO of Vanguard Fund or shall I say one of the most popular fund manager was interviewed on BFM two days ago.

While he is making Index Fund being popularised, shall I call it that one of the closest to index funds in Malaysia is EPF? When you are holding funds through EPF, you are basically buying closer to the Bursa Composite Index, as they typically holds almost all the larger companies in Bursa.

I do agree (if you listen to the interview) that the fees in Malaysia for unit trusts are way too high.

Friday, January 23, 2015

Insas' Rights

For those who would be wondering why Insas's share price dropped by more than 5%, it is possibly due to this as well as a 1 sen dividend (ex-date 23 Jan).

Besides the above, there are some important dates with regards to the rights, as below.

 For those whom owned Insas shares prior to 23 Jan 2015, please take note of it. if you want to sell your rights, you may want to do so between 28 Jan 2015 to 5 Feb 2015. Otherwise, it is wise to pick up the Redeemable Preference Shares.

Saturday, January 3, 2015

Further bought Insas

I further bought Insas at RM0.805 for 12,000 units.

My take on Insas are here and here.