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Posts Tagged ‘Blumont’

Retail punters suffer ’cause SGX, MAS dysfunctional?

In Corporate governance, Malaysia on 29/10/2013 at 4:53 am

I waz surprised at the swiftness that SGX allowed Asiasons Capital, Blumont Group and LionGold Corp to resume normal trading, as I had expected a prolonged period under “designated trading”, allowing me time to think about and investigate Asiasons. (My initial tots on Asiasons).

My immediate reaction waz, “Shld have had the balls to buy at 12ish cents*” with cash upfront. My next reaction was “How come SGX come to conclusion everything halal so fast?”. My third tot was, “Wonder if SGX and punters are going to repent?”.

A few days after stocks cheonged following the lifting of trading restrictions, SGX and MAS announced investigations. On 26 October 2013, BT reported JUST as shares of Asiasons Capital, Blumont Group and LionGold Corp shares appeared to be clambering out of their doldrums, news of the Monetary Authority of Singapore’s (MAS) investigation into their trading activities dragged them down again.

“MAS and the Singapore Exchange (SGX) are conducting an extensive review of the activities around these stocks,” MAS said in a statement yesterday. “This episode has also surfaced broader issues regarding the market structure and practices which MAS and SGX intend to review thoroughly.”

All three stocks slid to their lowest level in a week as skittish investors took profit. Asiasons shares fell 18 per cent to 19 cents, Blumont stock dropped 19 per cent to 16 cents and LionGold shed 15 per cent to 25 cents by the close of trading yesterday. The three counters were among the five biggest percentage decliners on the SGX.

Why couldn’t the plans to investigate and the lifting of trading restrictions be announced at the same time? If necessary, the latter could have been delayed a few days, while SGX and MAS deliberated? No wonder MAS MD got only a B rating compared to his M’sian and Pinoy counterparts (A) http://www.tremeritus.com/2013/10/27/head-of-mas-ravi-menon-only-gets-a-b-grade/. Shamefully that S’porean is graded lower than Pinoy or M’sian.

And do remember that FTs hold the top two posts at SGX.

Anyway, I’m not complaining. Gives me time to think about and investigate Asiasons. But lifting the trading restrictions (implying everything halal) and, a few days later, saying that there were going to be investigations,  ain’t fair to punters.

SGX has publicly said it wants retail investors in the market. Great way to treat them. But then there were S-Chips. I remember the boast by one Larence Wong of SGX (now departed), in the early noughties, that only chinese companies with accounts certified by int’l auditors were to be listed. They were, but looked what happened? The perils of ang moh tua kee.

Related post: http://finance.yahoo.com/news/singapores-penny-stock-mystery-increases-210030112.html

*Closed at 0.147 yesterday.

Asiasons: 2 bull pts

In Financial competency, Malaysia, Private Equity on 24/10/2013 at 4:46 am

Firstly, controlling shareholders are gd financial engineers. I had bot into Integra 2000 for its planned massive dividend in 2007 which I believed that the market had not appreciated because it was conditional on deals getting thru. It then started flying cum dividend. I had expected to sell the shares at a slight loss from the cum di price when it went ex-dividend. Instead I made a profit. Later I learnt that these guys had bot into the shares cum dividend. They must have used the pending dividend to finance the purchases. Financial engineering at its best.

(FYI, BT on Tueday quoted an unname broker, “He believes Asiasons’ “true” value could settle in the region of 30 to 40 cents, while LionGold’s could lie between 40 and 50 cents as it has a higher book value.”. Don’t know what he means, but will explore.)

Secondly, these guys willing to spend dollars trying to look gd. Blumont and LionGold selling controlling shareholders have gone to ground. But still, like Asiasons, their share prices have flown.

It was a masterstroke of Asiason’s PR/ IR team that got ST to carry a story entitled “Were not a bunch of comboys” on Saturday 19th October, juza before relisting on Monday. In it we learn,

— about the sparsely furnished office of Asiasons Capital in China Square Central [Frugal, serious people]

“The share price volatility has absolutely no link or association with Asiasons’ operations,” said chairman Mohammed Azlan Hashim, a prominent corporate figure in Malaysia who sits on the boards of sovereign wealth fund Khazanah Nasional and IHH Healthcare. [Not a nobody]

— Asiasons has a fund management portfolio of about US$300 million (S$372 million) and counts Malaysia’s deep-pocketed state-owned funds such as Ekuinas and government pension scheme Kwap as clients.[Gd, solid connections]

— At current price levels, Mr Azlan admitted that the shares are hovering near the level they were at in 2007 when he and his two partners took control of Asiasons, then a human resources technology firm called Integra2000 and shifted its business focus to private equity investment … three also reiterated that none of them have sold “a single share” in Asiasons over the past six years.  [Long term greedy] That’s quite a contrast from what has been taking place at LionGold and Blumont, which have seen significant trades recently involving insiders, particularly disposals and forced selling involving directors.

— “This so-called web of cross shareholdings makes it appear as if we are in cahoots in this whole thing,” said Mr Lim. “We are our own men and no one else is influencing us.” Asiasons owns 9 per cent of LionGold and has a 27 per cent stake in ISR Capital which it plans to eventually divest.

Mr Azlan reiterated that there are no other connections to the other firms. “We have absolutely no relationship with these other firms, including Blumont. The only relationship there is Jared, a director, and his wife but that’s not related to Asiasons per se,” said Mr Azlan.

Clearwater Developments, which is linked to Mr Lim’s wife Dian Lee, owns a 7 per cent stake in Blumont. That investment, Mr Lim said, came about from an “innocent transaction” a few years back when Blumont, then called Adroit Innovations, was scouting around for some properties in Malaysia.

“She went ahead and made the decision herself and it was a small investment which involved shares. Now she and her partners are looking to sell their stake as it was purely an investment and not part of their business,” said Mr Lim. [Not connected with …]

— The three founders also categorically denied another topic hot in the market rumour mill that Asiasons is connected to well-known Malaysian stock investor and businessman Soh Chee Wen. [Not connected with …]

Watch out for the “bowl” consolidation, if thinking of buying. Let you know if I buy some after I buy some.