Dear Calvin,

I totally agreed with you on the undervalued assets and investment in Mulpha. My concern is will the majority shareholders will share them with us, the minorities. My concerns come from below:

1) The past history of the majorities shareholders as stated in this links: http://www.ytlcommunity.com/common/printerfriendly.asp?section=1&fileid=14052
http://www.scmp.com/article/477113/lee-ming-tee-saga-ends-years-jail-tycoon

2) As i stated in my previous post, why Mulpha didnt sign a share sell agreement at RM105mil by including the advances instead of sign an RM1mil SPA and transferred the 65% of the equity of the company holding the land + a side settlement agreement for the RM104mil advances. The settlement sum is overdue near to 2 years and the shares transfer already completed in 2012. Is the deal to undisclosed related party? will the settlement sum will b classified as bad debt later on and the purchaser is then acquired 65% of 939 acres of land at Kuala Langat at RM1mil only? we shall see.

3) Mulpha spent AUD60mil (RM180mil) to renovate and rebrand One&Only Hayman Island. I am not sure the amount is reasonable or not but i think is a lot of money for a resort show in the picture in the annual report.

4) Recently there are a lot of buy and sale of assets and company to different parties. These might be genuine streamlining of their operation or these could be something else? i dont know.

For the cashflow i mentioned just now, my worry is looking at the interest paid per quarter alone, Mulpha available cash can only last for 4 quarters without fresh drawdown of new bank loan. This exclude some other expenses and statutory expenses like RM14mil tax per quarter. If Mulpha cannot churn out enough profit next quarter, it has to rely on extra bank borrowing to match its expenses, disposal of assets and maybe a cash call from shareholders.

Dear all, i am glad to read from here some different views on Mulpha. I noticed some of the things below,

1) the actual debt is not only 800mil as i read from here, if short term + long term is 1.6bil.

2) Chairman of Mulpha, Mr. Lee is also chairman of Sun Hung Kai & Co. Ltd (http://www.mulpha.com.my/board_of_director.html). From the annual report of Mulpha, Honest Opportunity Ltd is stated as "AIBB Nominees (Asing) Sdn Bhd - Sun Hung Kai Investment Services Limited for Honest Opportunity Limited". I am not sure are they related or not.

3) Although Mulpha has 500+mil cash in hand, but 438mil is pledged to secure bank loan. Left with only 100mil available cash. Cash generated from operation before wc change at 4-5mil per quarter but interest paid in the latest quarter near to 20mil.

4) in Sep 2012, Mulpha sold 65% equity interest in Seri Ehsan (Sepang) Sdn. Bhd, which hold f 939.04 acres land in Kuala Langat, Selangor for a cash consideration of 1mil and cause a loss on the disposal amounted to 21.08 million to Mulpha. A side settlement agreement signed which required the purchaser to pay back RM104mil company advance which due on Dec 2012, and further extended to Dec 2013. My understanding is that Mulpha booked in the receivable but until today has not received the said amount.

Those are some of my concerns on Mulpha. Hope someone can enlighten me. But as what Calvin mentioned, Mulpha indeed has some undervalued assets and valuable investment in some listed co.