If Ecm is going to be taken private and then get de-listed from KLSE, well, there's not much to be said. But Ecm has no debt; it's cash-rich and each share is back by about RM1.11. It's in financial services. Now take a hard look at the principal shareholders. Study the shareholding changes and estimate how much they have accumulated. If and when it comes out of PN 17, yes, it may go to 1.70 but will you take profit at 1.70? Unless I'm forced to, I won't sell. Good luck to all of us.

Financial services companies ECM Libra Financial Group Bhd and MAA Group Bhd are in a peculiar situation. Unlike most Practice Note 17 (PN17) companies on Bursa Malaysia, ECM Libra and MAA are not financially distressed but are profitable and have plenty of cash.

The reason they are in PN17 status is that they have ceased to have a major business following the disposal of their core assets. Time is running out for some of these cash-rich firms and they may face delisting as they have yet to secure major businesses or meet other necessary criteria.

What makes it more difficult for these companies to shed the PN17 status are the restrictions they face as financial holding companies (FHC).

These firms are not at liberty to acquire any other businesses as Section 114 of the Financial Services Act, 2013 (FSA) requires an FHC to deal only in financial services or related businesses.

A year after the divestment, ECM Libra has neither secured major business nor met the conditions to bring it out of PN17 status. The company made a loss of RM52 mil in its fourth quarter ended Jan 31, 2013 due to the disposal of its investment banking business.

However, the financial services provider could still be on track to shed its PN17 status based on its recent earnings record.

On Nov 25, it sought a waiver from the authorities from having to submit a regularisation plan taking into consideration its results ended Oct 31, 2013. If approved, ECM Libra will be out of PN17 classification. It has posted three consecutive quarters of profitability since the first quarter ended Apr 30, 2013. - See more at: http://www.focusmalaysia.my/Mainstream/Financial-services-PN17-companies-in-peculiar-situation#sthash.oLGCL4IV.dpuf

On 29th March 2013, the free float of ECM was 27.73%. As of 25th May 2013, Lim and Azman owned 48.2% of ECM. Since then, LIm, Azman and Kali have been accumulating ECM shares. You can expect the free float of ECM to be much less by now. Look at what happened to HL Capital. On 13th September 2013, the free float of HL Cap was 2.16%. HLCap was 1.70 in January 2013. Today, a year later, it is 12.80. If the same thing happens to ECM as what happened to HLCap, you can expect ECM to go on a helluva ride. Keep your fingers crossed. If it comes out of PN !7 (no reason why it shouldn't), you won't be looking at a RM1 share anymore.