KNM fell into PN17 on 1/11/2022, under the previous management where Flavio was executive director. At that time Tunku was non-executive director. Tunku and his team took over after 1/11/2022 with Tunku being appointed Chairman on 9/2/2023. The team is trying very hard to lift it out of PN17 asap. So far they have been doing a very good job, handling the daily operations involving marketing, production and keeping creditors confident about the company's prospects.

Most people don't know anything about the German guy who want to take over KNM. His name is Andreas Heeschen and he is the boss of Heckler & Koch, the German gunmaker who is sanctioned in Europe, especially the UK. it seems that they are branded as the "most notorious gunmaker" according to this news report in Europe.

We know that Andreas Heeschen is just the macai of Flavio Porro, the Italian lawyer who was formerly director of KNM. Andreas is also known as German bilionaire tycoon. This news report expose who Andreas really is. He is actually a bad guy who try to bribe Angela Merckle's political party.

Now can we trust a guy like that to run a Malaysian's listed company KNM? Just take a look yourself...

https://www.dw.com/en/angela-merkels-party-accused-of-taking-bribes-from-german-gunmaker-hk/a-43900844

https://www.knm-group.com/bursaannouncement/2023/25092023-WINDING.pdf

German will choose Option 3. 2 major creditors ie. ADB and foreign PE Fund gets paid in FULL because they hold Borsig as security. All other creditors will be totally screwed. Nothing left for them.

The current management is doing Option 1 above. It will pay off everyone. Share price good chance to get back to 30, 40 or even 50 sen.

In terms of figures, it is also not hard to analyse the value of Borsig currently.

1. Listing is at 15X PE on PAT
2. Trade Sale is at 7X PE PAT
3. Liquidation Sale is at 5X PE on PAT

Actually the Borsig deal is not complicated. Just that the previous management is not able to do it. Tunku has the clout to pull this off. He has been shuttling through and fro to Singapore to see the authorities and also the leading GLCs there.

Shh... the big GLC there wants a lion share of Borsig. Given the status of Borsig now, securing contracts from Elon Musk, the future prospects look ever so bright. KNM is having a big headache thinking how much share to part with.

They say "lion's share" means a very big share. But if we look back at the original story in Aesop's fables, a lion's share really means something else. Tell me if you find out. Hehe...

Sifu Woods,

I think you are right again. If German take over, both Tunku and German also will lose. Tunku's hard work will be useless. The German think he can just cart away our asset like that, and when that happens they are in Europe. What can we do to them. (Then have no intention to settle PN17.) But then it may not be as easy as that. Like you say, they will lose, too.

Business is very dynamic. If a business is worth $100 million today, it may be worth only $50 billion a month from now. Or, it may be worth $200 million. Some investors are not happy KNM is trying to sell off FBM for only about RM100 million. It made lot of profit earlier and was worth much more than that.

An example from Tesla may enlighten us. When they were in their younger days they almost went bankrupt a few times. Elon Musk had few hundred million capital after selling off his Zip2 and Paypal business. But that was not enough to do car manufacturing business. The big boys all had tens and hundreds of billions. It was like what the Chinese say - trying to cut big tree with small knife. In his case, he was trying to cut big tree with razor blade. haha

So, one day in 2013, Tesla was few weeks from bankruptcy. Again. This time even the great Elon Musk ran out of ideas. He went to see his best friend Larry Page (Google boss) and ask him to buy over Tesla for about $6 billion. Larry's lawyers asked him don't buy; it's too expensive. So Larry delayed making his decision. Luckily for Elon...

Within two weeks, Tesla suddenly had more than $500 million sales and car orders. This was due to some extraordinary sales and marketing campaign done by Elon which not many people know about. He then turned around and told his friend Larry, "Bro, now you cannot afford to buy my company. It's really too expensive."

Today (Sep 2023) Tesla is worth more than $800 billion, just 10 years after their almost-bankruptcy episode.

Sorry I'm long-winded uncle telling grandmother stories. But I hope investors can understand there is no fraud or wrongdoing at KNM when they try to sell off FBM at such a cheap price. The production side is having problems with high cost. The marketing side is also having problems with lower profit margins than before. They can thank their lucky stars if there is a buyer willing to take over.

(The Tesla story is not made up. It is found on Elon's biography written by authorized journalist Ashlee Vance, on page 341.)

What doubleup say actually is not secrets. A lot of people earlier know already. Just that they never say. Tunku and his team having their hands full running the business. No time for politics and boardroom tussle and all that. People inside do fraud also they got no time to take action.

We just need to work a bit harder, talk to the staff and if we got time, talk to the management team. They will tell us the real things going on at KNM. Their face will light up when they tell us all the good things for their future expansion.

Sifu Woods,

You're right. All of us especially the bilis just want to make money. It's not a crime, right? There are always two ways to look at things. We try to see the positive side.

If German/foreigner win investors will think, foreigners more clever will improve the company. So, share price will shoot up. But, if Tunku win, investors will also think local businessmen very clever. Company got good future potential. So, share price will also shoot up.

We make money, laugh our way to the bank, maybe go for a Japanese dinner. And don't care less what happen later.

My logic is that if both side also we win, why not we be more patriotic support our local Tunku instead? We still make money. After all, now that we know the foreigners are bad guys who just want Borsig. Where got any plan to save or develop the company?

Tunku and his team are not just working hard to pay debts and save money. More importantly they must help KNM make money or generate income. They did this so successfully with Borsig. That's why everybody is eyeing it now.

Do you know how they help Borsig? They secured orders to supply equiment to none other than Elon Musk, to help him with his space projects. Now how powerful is that? Elon Musk is one of the fussyers customers in the world. He want everything high quality, very very fast and super cheap. Imagine, Borsig can do all that. Those orders amount to hundreds of million euros waiting to be fulfilled. They showed these order to the creditors and bankers. That's on the marketing side.

Then they have to optimize their plant capacity. That's on the production side. And they have to make sure Borsig has enough funds to fulfill those back orders. These three things need very high level of skill. For armchair guys like me it's easy to find fault and criticize businessmen when they fail. We don't know the kind of hell they go through.

That's on the inside, and with guys trying to do fraud. Now they have to fight outside also. To prevent people from getting a free ride and stealing all their hard work, blood, sweat and tears. Like the founders Lee family.

Next up is the EGM 16/10.

We are concerned about the RO. I heard it has been extended and they will announce soon.

Now they more pakai the Zoom or the Google Meet.

We only worry about fake news and not fake accounts. Flavio posted on other sites saying that he has already been re-appointed as director of new bod. Why the Italians and Germans not post here? Err... maybe they know this forum got the real news and facts?

Very few people know. Flavio is the classic example of the biting the hand that feed him. The founders Lee family appointed some staff to high posts and Flavio was one of them.
In fact they made Flavio one of the top guys. He in turn ousted Lee and family by blackmailing them. He never expected Tunku to step in to prevent the company from going straight down. And Tunku had his hands full trying to save the company up till now; he had no time to take action against Flavio and gang. Now Flavio is coming back to do it one more time. You can bet Tunku and team will defend to the utmost. We may be bilis and watching the show. But we are also patriotic and want to see justice for our fellow Malaysians.

Most likely the creditors would want to work with somebody they already know. The current management have been honest about the situation and open up the books to them for inspection. They also try to realize assets and improve cash flow to pay off the creditors. The creditors wouldn't want to risk having a relationship with a new management. Most likely they will just maintain the current situation. The share play will be among the big boys with deep pockets. Small investors like myself will just try to ignore news about any changes and focus on other counters instead for the coming weeks. Let the dust settle and review the situation again. But it will be fun to watch this counter...

😀😀😍😍🤑🤑🤠🤠😁😁

Yes, a lot of fake news. Earlier there was news Borsig list US NASDAQ. I call up the company to enquire. They say no such thing. But SGX is real. And looks like it's very likely near future. Fingers crossed we make some windfall here.

Uchi is very stable company with good track record. We have to be patient with the management. They will become competitive. This is a good-dividend stock, not for speculation though.

Oil price keep climbing, causing inflation all over the world. Luckily for Malaysia we have Petronas pumping lots of oil for us. I have been keeping this stock for more than 10 years. Good dividends. Today brent oil is above $90. Way to go...

I'm holding on forever to this counter. But if the price is too good I will sell some and buy back later if it's cheap.

KNM selling off FBM Hudson will improve their cash flow. This is a good move by the management whichever way we look at it. The business is too competitive and FBM is making losses, unlike Borsig. BTW whatever FBM can do Borsig also can do.

The deal is through and they will receive lots of cash to ease their position and recover from PN17.

It makes commercial and strategic sense to sell off FBM for a few important reasons. Borsig can do exactly what FBM is doing. And due to intense competition, it's too difficult for FBM to continue making money. Labor cost there is very high. Welders cost 100 euros per man hour. How to make money like that?

The focus now is on the creditors owing RM1 billion. They can put a big spanner into the works before anyone can run the company, including foreigners who are trying hostile takeover. My whole investment will go down the drain, even though it's peanuts compared to German tycoon. The coming days will be crucial.