Risk Taker vs Risk Averse

The so called "missing cash of 60m" has been reclassified under " other receivables" . Other receivables can be taken as "non-trade receivables" which have nothing to do with trade in the normal course of business. Other receivables/non-trade receivables include but not limited to " Advance/loan to third parties'' , '' intercompany loans to related parties" , "any non-trade bills such as consultancy fees " , any designated accounts " be it real or fabricated etc etc. My point is that if the transactions arising in "other receivable/non-trade receivables" are legitimate, there is no need for the incumbent auditors to resign before the expiry of their terms of office. It is believed that the said transactions are unverifiable and uncollectible coupled with the uncooperative attitude of the Management , the auditors just called it a day and quitted.

Nevertheless, the " hole" created by the company must be "filled "ie the "other receivables" must be " collected". It remains to be seen as to how the " hole" could be filled by the Company . From the way it goes, it is likely to be impaired.

The cheapest has yet to come neither has the rebound...

Fundamental is one thing,the integrity of management is another thing.

Ever since the founder and his partners have realised their shareholdings,the performance of the company has been under par from one season to another season. You can lie but the figures don't lie...

No hindsight but judging from the current circumstances surrounding the company,the share price is expected to be depressed further...

Until the dark cloud is cleared by the company itself in a satisfactory manner , its share price is expected to continue to be depressed.No matter what and how it is done, it is believed that EPF Board would not invest in this company as it is once bitten twice shy....... Basically it is kiss and say goodbye forever..........

The so called " high cash cushion " is believed to be depleted faster than you and me could imagine under the interim Management. It is believed that EPF Boards and others have full knowledge of the truth. Their recent exodus was not by coincidence or out of panic.........

It is not a matter of cheapness but a matter of worth. It is not worth your while to take the risk despite of the fact that one men meat is another men poison...............

KPMG are reputable external auditors and their audited financial reports carry heavy weights . As such, more and more companies are expected to use them for their financial benefits

It is not a matter of undervalue or what but a matter of loss of confidence in the integrity of the top management to condon this kind of irregularity

Where is the money forked out to ? Is it legally forked out ? Is " other receivable" collectible ? The truth is from the current management and the incumbent auditors,KPMG

Dont be so naïve. It is already gone but it is made to be " ungone/ alive " under other receivables. How it is done ? you go to check with the current management . Jf you cant get the truth from them , then go to check with KPMG who could perhaps shed light on it but I doubt they would do so.........

All the Management have said so far is that "business is as usual" .What they are implying is that they can condon this kind of irregularity as if nothing ugly had ever happened. Do you really believe that the investors are so dumb to believe what they say?

How to rebound when the investors including the significant ones have lost faith in this counter

No need to own 100% . Once you have controlled the BOD , you control everything where the cash reserves is at your entire disposal. You can even reclassify the entire cash reserve under " other receivables" but you are expected to pay for the heavy price eventually.

The auditors are engaged/appointed by the shareholders in the AGM to take office ( term of office) effective from the AGM to the upcoming AGM where the shareholders can vote to continue to re-appoint the incumbent auditors for another term or not . Once engaged , the auditors are obliged to report the true and fair view of the financial reports free from material irregularities etc under the companies Act ( CA)

The auditors are empowered by CA to conduct statutory audit independently and objectively without inference /duress from Top management . The auditors are at liberty to resign during their terms of office but they must explain the reasons as to why they resign in the EGM where they can shed light on irregularities or otherwise . By the same token, the top management can dismiss the auditors during their term of office , however, the incumbent auditors have the right to call for EGM where they can express their views .

The cheapest has yet to come............................

I have 4 words for you....."open up your minds"

Hello,have you heard of insider trading which is illegal in M.By the way,is whistle blower well protected in M?

In the case of serbaD,the auditors,KPMG didn't resign but kept seeking the Mgt assistance to facilitate them to verify the receivables among other things .However ,SD mgt was uncooperative and dragging on and threatening to dismiss and sue the auditors...the rest is history now...

Whether KPMG has audited the current account or not is not the issue. The very fact is that such irregularities have come to light of which the incumbent auditors are fully aware and they must act upon during their term of office.

When the cash of 60m has been reclassified as " other receiveables", the auditors must verify its existence and nature of it whether it is recoverable as this is a current asset to the company

It is believed that the auditors were unable to verify the above and was uncertain of its recoverability despite the management representation that it is recoverable.

Given the above, the auditors have no alternative but to impair (write off)the said amount so that the current asset is not overstated in the financial report reflecting true and fair view .However,such impairment will result in reduction of profit by that amount which could turn the profitability into a huge loss.

It is believed that the management has disapproved of this treatment which led the auditors to resign in protest.

It is very irresponsible of the management to block the auditors from expressing the true and fair view of the financial reports for the investors across.

The intriguing question arises as to where the cash of 60m has been " transferred" to . It is clear that if the incumbent auditors ,KPMG was happy with the management representation about this so called " transfer / reclassification", the auditors would not have resigned half way through their term of office.

It doesn't matter who helms the company ,when such irregularities are condoned,the integrity of the top management is seriously in disrepute resulting in loss of confidence from the investors across.

The "missing " or reclassification of RM 60 m cash is the reflection of fishy management of BOD in discharge of their duties and care and accountability to all the investors across.

In 2023, the founder ,michael decided to abdicate and sold all his shares to APB at a price of RM2.00 per share and cashed out RM140m.

After the management rights changed hands, APB sent more than three representatives to the board of directors. The only representative of the founding family is the CEO, Heng’s daughter. Among the nine directors, almost all of them do not hold any shares. In other words, they only work for a salary and have no interests tied to the company. Finally, It is believed many people cannot understand why APB is willing to buy Gtronic for RM2.00. It is believed that what APB was interested in was the RM200m in cash Gtronic had in hand. After spending only RM140m to buy 10.4% of the shares, they can take over and control the entire company. It is totally worth it! In other words, it is actually up to APB to decide how to spend the company’s RM200m of money.

Looking at the latest quarterly report, the cash in hand suddenly decreased by nearly RM60m, and this RM60m was listed as other accounts receivable. Obviously, this move is very suspicious, and it just so happens that the auditor,KPMG suddenly resigned at this point in time.

By now,it is believed that everyone knows what the truth is. It is believed that the incumbent auditors ,KPMG has resigned in protest.

It is believed that the support is unstainable and eventually it will collapse to become a penny stock

Using the extra funds to buy the shares of related companies into treasury at the depressed prices manipulated by other parties of the related companies. As seen , all the shares of related companies are kept below 1.00 if not 0.50 to make it marketable and affordable for the general public

I am who I am and at liberty to express any comments /perspectives ,be it negative or positive without prejudice and fears . I must clarify that I have never been the hardcore supporter of Serba nor am I associated to anyone in Serba.

It is believed that all the companies under the common directorships are under probe for suspected manipulation and collusion among themselves.

Suing for libel ?? like teresa kok suing for slander....

EPF Board is paying good dividend for a reason . Do you think they will take any chance with their emotions in the market ?? you could be emotional but they are not ................

i3 is a mixture of book smart, street smart , smart ass , smart aleck,wise-ass, know-it-all, hotshot, egghead, diehards , psychos and many others...........

If you believe in Maybank, you believe in every thing ............

i3 is mixture of discerning people and delusional people and psychosis...........

BOD is full of fishy people .wherever they go, there will be troubles.... typically trouble makers

more margin calling is due 2moro , more selling pressures are expected depressing the share price further ...............

It is purportedly learnt that the exiting BOD of Gtronic is fishy with shenanigan dealings.

It is good to "talk" sense , it is good to "listen" and it is good to" see.".... thats how we learn and grow........... isnt it ??
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Open your eyes and minds. If you choose to close your eyes and minds like the orcish burying its head in the hole underground as if nothing was happening, your ignorance is larger than your loss then............

For Serba Dynamics , many cited the same that the sellers were overeating but the seller proved to be sensible and managed to salvage some in the end ,better than those delusional diehards losing all down to the drain..........

No panic sellers but sensible sellers in reaction and response to the reality. It is pathetic of many to look but dont see and many to hear but not listen... thats delusional of the highest order....

The general rule of thumbs is " High risk high return, Low risk low return " , It is their choice to opt for high or low risk of their own free will. Perhaps they feel more thrilled if they win or lose big . Basically, one man meat is another man poison...

the support is illusionary and unsustainable

Why are you still delusional and still remain hopeful of it where there are clear signs for you to see ??

The support is expected to be overwhelmed by the mounting selling pressures from now due to uncertainty. The incumbent auditors ,KMPG will communicate with their successor ,UHY as to why they have resigned. It is believed that the EPF Boards and the rests of significant investors must have the knowledge as to reasons why KPMG have resigned, which prompted them to exist the market without second thought.

Change of auditors is no big deal but not in the middle of their office term ,which is a big deal as it could suggest something fishy is going on whereby the auditors are unable to proceed to conduct the audit due to duress , disagreement , deliberate intervention/override of BOD/management, in-cooperation, sabotage, refusal to provide information required to facilitate the statutory audit, refusal to provide written representation, refusal to confirm the veracity of transaction etc

Whether KPMG have started the audit 24 is not the issue . The issue is that KPMG are the incumbent auditors who are still serving their legal term and owing the duty of cares to report to the investors independently and objectively until their term expire at the upcoming AGM

Change of auditors is no big deal if it is done at the end of their office term ( ie the auditor is not re-appointed) but if the change is done in the middle of their office term ,which is a big deal as it could suggest something fishy is going on....

It is believed that all the Fund managers of all the significant clients must have their own intelligence units every where including but not limited to audit industry.

The news of voluntary resignation was within their reach and knowledge faster than you and me

I am not the insider .I don't have the 1st hand info ( KPMG must have served the company with notice of resignation well before the company was to make annoucement) but you don't have to be so clever to figure out the reaction of significant investors such as EPF Board in the open market. The sudden and unusual exodus of EPF Board was insinuating that something was seriously wrong.As a prudent investor, you should be alert and react according to your intincts( if you have one)