Management should be careful not to count chickens before they are hatched. By painting too rosy a picture can lead to big disappointments and the eventual loss of confidence of its followers.

If management were so far off in their guidance on UniMy student intake for this year, which was only 18 against management's guidance of 300, you think investors will believe management's guidance that UniMy will be able to breakeven this year? Please give me a break. By giving excuses that acceptance letters to students were sent out late and also most of the students did not meet UniMy's stringent criteria raise more doubts instead of allaying concerns.

If offer price of RM1.21bn at RM140/sh on 8.65m shares implies a historical PE of 30.7, then historical EPS was RM4.56/sh. Hence, PU's historical NP was RM39.446m p.a. This compares with potential interest income of RM38.72m p.a. at 3.2% p.a. if the RM1.21bn is placed in fixed deposits. Ceteris paribus, at RM39.446m NP p.a., the payback period for this investment is about 30 years. A damn good deal for the owners of Pontian United, especially when the estate and mill are pretty old (more than 15 years, I hazard a guess). Some 95% of the plantings must be in the prime or past-prime category, and quite similar to most of FGV's plantations, massive replanting is necessary in due course. With part of PU's property prone to flooding during monsoon, and the nagging problem of harvesters shortage, the assumption that PU's FFB yield/ha could be close to 28mt/ha is wishful thinking indeed.

Favco dropped because of purchase of the crane fabrication yard in Australia from Muhibbah for AUD15.00m to be paid by 31.678m new Favco shares at RM1.52 per share. This will dilute Favco's future earnings by some 1.5 sen per share. Assuming a PER of 5.25, this will translate to a reduction in share price by some 7.9 sen or 8.0 sen.

A pensioner told me he had subscribed for the Hibiscus Petroleum IPO because he thought this company is in the petroleum business and hence it is safe to invest in. He did not realize that it is a shell company with no assets and no operating revenue and income at all. I am sure he is not the only one who had subscribed for the IPO. Good luck to them and their hard-earned savings!