Tuesday, June 21, 2011

Time Dotcom - Til today they can't get their heads straight

Most investors would remember that Time Dotcom was rescued by the then, Telecommunications Minister Lim Keng Yaik. LKY was probably forced to not provide a 3G license to Digi (when it is the one who can do something with it), but yet gave the license to Time (the one with financial trouble) - forced Digi who had no choice but to lease the license from Time and voila, Time's big hole was patched allowing it with a positive cash position today. Not bad for the rejuvenation of a Malaysian company without doing anything strategic. (If you notice, Time owns some Digi shares which they listed as investments in the books. FYI, they have sold a large chunk for the cash they have as at todate)

But yet Time's predicament which is not having a strong business (yes they continue to have the fibre from the North-South Highway) persisted until few years ago. Until they found Afzal (a guy who has ideas worth some millions but not the hundreds of millions he has now!). Afzal owns AIMS with several connected partners probably had it tough to grow the business until that big break. I cannot comprehend the valuation of a group of companies which in their mind is valued at RM334 million by CIMB assisting. Tell me how are we supposed to value some small data centers which they put little money to start with and later tell Time Dotcom shareholders it is now worth more than RM330 million? No profit guarantee but some wishy-washy profit forecasts.

And 2 days ago, what makes me sick is that Time Engineering (another listed entity who owns around 24% of Time Dotcom), puts up their holding of Time Dotcom for sale at RM0.53 per share. Can someone tell me why then Time Dotcom is valued at RM0.80 per share during the proposed sale of the shares? No analysts dare to make any comments on this?

Does this mean that Time Engineering does not believe that the share is worth RM0.80 as in the market price (before the announcements) or could again something is done behind the scene?

I suspect that someone is using this opportunity to wipe the overhang shares from the market at a below market price.

Serious Investing!

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