Tq Jetli for your fair comments. I concede not all PN17 companies are a disaster. Yes, a cash rich company with no significant core business can also be classified under PN17. I was airing my thoughts after reading and listening to what the oil and gas industry is undergoing right now. I get my news from newspapers, CNBC and Bloomberg. Right now charter rates for oil and gas assets are pegged to oil prices and obviously there is a mismatch between charter rates and money that is needed to service bank loans to purchase these assets that were ordered or planned when oil was USD 110.00 per barrel and beyond. I hope oil and gas companies will have no more need to write down their asset values. Please take note that Perisai have to take delivery of their preordered oil rigs Pacific 102 and 103 respectively from Sembawang Shipyard. As it is, their MOPU oil rig and pipe laying Enterprise is idling without any sign of new contracts. It is going to be very difficult for Perisai. Some companies will manage to ride through the oil price storm but some will not. Just for the record, currently I do not own any shares in oil and gas companies. Less some readers might think I am a trouble maker, I shall refrain to comment on this counter in the future.

Exercise caution while trading in Perisai. When a company goes into PN17, it means the company`s liabilities are higher than its nett assets. If the bond holders believe that there is a way out, then restructuring of the loan will take place but if after looking into the books of Perisai, the bond holders feel that winding up is the only option, then the company goes into receivership. Just to quote past cases, SJA was liquidated by Hong Leong Nominees many years ago when they gained control of SJA through minority shareholders support. But yet upon taking control of SJA, Hong Leong Nominees just asset stripped and liquidated SJA to recover whatever they could for their masters. Minority shareholders interests was of no concern of theirs. Another case was Lityan/ Theta, Tabung Haji went to the courts to fight against KLSE`s order to delist Lityan/ Theta. Why did Tabung Haji opposed the delisting of Lityan/ Theta? Because they had invested too much money into Lityan/Theta and would have to write off hundreds of millions if Lityan/ Theta was delisted and later goes bankrupt. What Tabung Haji did was appoint new managers for Lityan/Theta and consolidate Lityan`s shares. Something like 30 lots of 1000 units becoming one new lot of 1000 units. And later, Rights issue at RM 1.00 nominal was offered to shareholders. But till today, Lityan/ Theta could not recover from its financial losses and is hovering at around 0.32 sen per unit. I guess the losses suffered by Tabung Haji and other shareholders is beyond recovery. Perisai is staring at either extremes of what I have just explained. So be very careful. Just go back and read what I posted during the period between March 2013 till September 2013 to understand the situation more clearly.

Everyone who follows Mr kcchongnz columns will agree that kcchongnz gives out good and well thought out advices. For that, we cannot thank him enough. His opinion on mutual funds especially Public Mutual is spot on target. I once got so frustrated with Public Mutual that I wrote a 3 page letter and handed it over to their Wealth Manager and asked her to forward it to their HQ.In my letter, I asked Public Mutual why I would want to waste my time and money investing in many of their non-performing funds. I highlighted that the rates of FD returns were higher than their non-performing funds and named some of the funds I held or had sold off. From my experience,I can safely conclude that their fund managers push their agents to sell slow moving funds that does not benefit its investors in the long run. After carrying out my research, I emailed my Public Mutual agent and asked him whether he was asked to promote slow moving or non-performing funds to their clients. He did not bother to reply to my queries, so I made my own conclusions. The agent had years earlier persuaded me to switched my portfolio from some performing funds to what he claimed was " sure Winners" at no cost in switching. Sad to say, I held those non-performing Public Mutual funds for many years and finally sold it off last year with no profits. These funds were Far East Dividend and China Select fund. Another was a Sukuk fund that the bank Wealth Manager says could pay out 4% to 6% per annum. I sold it off 18 months later because upon reading the annual shareholders report, Public Sukuk was lending out our money to "Highway concessionaires, plantation groups and Power plant operators at below 4% interest. So how can they pay me 4% to 6% per annum. Better invest on your own but with your eyes wide open.Learn from lessons taught by kcchongnz even if it is just discussions in a forum. Keep it up Mr KCCHONGNZ.

Guys, take note. Perisai`s pipe laying ship`s charter contract with KencanaSapura just ended. Its Mobile Offshore Production Unit Rubicone contract will also end by the end of September 2013. These two assets were the ones bringing in the bread (so to speak). Even if MOPU (Rubicone) gets a new contract elsewhere, it will need 6 months downtime for relocation. So you guys must realise that Perisai`s 4th Quarter 2013 earnings will be heavily impacted. Its FPSO ( floating production,storage and offloading vessel) Perisai Kamelia can only come on stream next year together with its jack-up drilling vessel Pacific 101. So far, no contracts in sight. If I were to be you guys, I will wait for further developments before I commit to buying Perisai. If we are uncertain, the best thing to do is to lay off the counter until you see a clearer picture. In share investing just like a surfer, you do not need to ride every wave. Just catch one or two big waves and enjoy the long rides. Remember, with fixed overheads and periodical payments to be made for its new assets which are yet to start operations, cash flow might be a problem.

I was actually referring to the Additional listing Announcement dated 12/06/13 where it was stated that 45,000 units were taken up at 0.785 sen. I guess I wasn`t referring to the latest announcement dated as 25/06/13.Thank you for the update.

Please be cautious when you are buying Perisai.Do not just base your buying on Investment Bankers` analysis.You should also pay attention to the actions of the Perisai Directors all these while.No doubt we can consider it as a growth stock for it has been ploughing every cent that it earns back into the company`s growth.My question is why is it that only minority shareholders have to grind their teeth and make do with no dividends and have to bear the risk of the fluctuations of the stock market while the Directors have become filthy rich even though they too do not receive any dividend payouts.The simple answer is: (1) The Directors get ESOS priced very low below the actual share price; (2)Some Directors get compensated handsomely for injecting their privately held assets into Perisai through cash as well as stocks priced very much below the market value (RPTs).(3) On top of all these, Perisai has to pay out goodwill for acquiring privately held assets.All these observations of mine actually drains money out of the Perisai coffers at only the expense of the minority shareholders.Why should we be suckers by bearing all these burdens while the Directors have become filthy rich by trading in ESOS and RPTs. What happens to your capital in a massive downtrend? You guys will have to wait a life time if you are lucky to recover your loss while these Directors have already recovered their capital many times over through ESOS and RPTs.I sold all my holdings in the recent run-up and will only consider buying in if the stock price comes closer to its latest ESOS which is priced at 78.5 sen.It brings no joy to the minority shareholders for the company to make massive profits but the profits is eventually used to fund RPTs and heavily discounted ESOS.Give my observations a thought my friends.Good day to all.Cheers.

Minitrader,you are right in your observations.This stock is definately being manipulated.There are unseen hands doing the selling and buying.Potentially,if the analysts and Investment Banks observations are correct,the counter should be hovering at a higher level but it is not.Maybe insiders in the company know something that we do not know.Who is offloading his shares should be very clear.We small timers do not hold such volumes to be sold.Is there any rigging of prices? I do not know.Some Directors may be selling through family members who may also hold substantial stakes in the company.Your guess is as good as mine. It becomes more murky if the stakes are held through offshore tax havens and the beneficial ownership can be hidden behind a smokescreen.My only complaint is minority shareholders in Perisai gets to eat bones while some Perisai Directors have become filthy rich just through ESOS and shares in exchange for assets(RPTs).

I do not like to trade frequently in the market because churning or trading frequently only makes your remisier rich while you may remain poor.What I normally do is do some research,buy stocks that I think will have good potentials to appreciate upwards in the future.Then do not bother about the stock for a very long time{play brain dead),years later when the price is favourable,wake up from my"coma",sell the stock.In our market,with T3 days for settlement,we are wasting our time trading frequently.Some of us are investors while some are traders.We will find our own comfort zone either as traders or as long term investors.Every market player have their own style.

kcchongnz,I am of the same opinion with you with regards to RPTs.Which kind soul unrelated to us will generously inject his personal money making machine into an entity where he will have to share his personal goodies with total strangers if he can reap all of it himself. RPTs comes under the jurisdictions of the KLSE and sometimes I am very uncomfortable with it.In the past I have owned shares of companies who go into RPTs with their Directors and eventually we shareholders have been ripped off. They pay inflated prices for rotten assets that eventually kill the company.Those KLSE watch dogs sometimes cannot "pakai at all".As for analysts and investment bankers all recommending a buy. We term it as "herd" mentality.Some analyst joker for whatever is his reason recommends a buy and everyone in his profession jumps into the bandwagon and echos the same thing.Do you know why? Because they are playing it safe.If their hunch is wrong,then everyone of them are wrong.They actually "cari makan" to ensure their bosses will not fault them for not picking the right stock.Everyone got it wrong, so it is ok. My two cents worth of opinion.Good day.Cheers.

Thank you all for your encouraging comments.Joshua Lee,it is not that I am not making a profit right now.Indeed my Perisai stock value right now is above my capital outlay and my holding costs for the last 7 years.I had to wait 6 1/2 years to break even.I invested in Perisai while it was still a Mesdeq counter.So you can imagine how I have been nursing the counter till today.My complain is the Perisai Directors have been very stingy with their dividends and some major shareholder is selling his holdings at around RM 1.08 to RM 1.14 thus suppressing its upwards momentum.Why do we invest in shares?It is either for capital gains or to enjoy a good dividend payout.Granted in its early years,Perisai had to plough back its profits to ensure growth.We as shareholders had no objections to such an approach.But 7 years later,I can see the Directors have become very wealthy while we loyal shareholders have not been amply rewarded.I can only realise some gains if I sell my entire Perisai portfolio.But that is not what I planned to do right now. Why can`t Perisai Directors follow the style of Public Bank,United Malacca,KLK (examples only) who through the years pay out good dividends and we also see its share appreciate in value over time.My fear is whatever gains I made can easily be wiped out in a down trend if there is a major meltdown of the KLSE. On the other hand,I know I have invested in the right industry(oil and gas)7 years ago.Only problem is some major shareholder is selling Perisai at a certain price thus preventing it from breaking RM 1.20.I hope he reads my views and understands the frustrations of minority shareholders.Otherwise some of us must gang up and attend the annual AGM to question the Directors.Good day to everyone.

Analysts can give buy calls and set high target prices but we must be very cautious of them.There is no free lunch in this dog eat dog world.How are we to know whether it is a genuine buy call or they have been paid by Company Directors to sing nice songs for certain counters.Perisai for the last 6 months has been a big letdown.The only people who made money are remisiers and most probably Perisai`s Directors who sold their shares at double their acquired price.The record will show that a certain Director got ESOS at 0.48 sen while another was given shares priced at 0.65 sen for asset acquisition.They can easily sell their cheaply acquired Perisai shares above RM1.00 and make huge gains and when the price drops to a certain level, they can pick it up again.We minority shareholders operate blind because we do not have inside information,so we do not know when to sell and when to buy.I have been holding Perisai for more than 7 years and despite the fact that Perisai makes profit every single year for the last 7 years,I only received 1% dividend once somewhere in year 2007 and bonus issue 5 for 4 about 4 years ago.I am fuming and want to blast Perisai Directors for taking us minority shareholders for a ride while they have become very wealthy.I hope others feel the same way I feel. I feel shortchanged.