Posted by tjhldg > 2013-09-19 10:57 | Report Abuse

sayonara

Posted by iwan1991 > 2013-09-19 10:58 | Report Abuse

not duit kopi anymore..haha $$$

Posted by tjhldg > 2013-09-19 11:12 | Report Abuse

dinner in hong kong ... heheheeee

Posted by derrick1508 > 2013-09-19 18:05 | Report Abuse

continue up up up~

Posted by Harvard57 > 2013-09-19 21:02 | Report Abuse

after dinner in hk
you want supper @ shanghai or not ?
ok ok..........dont let stonenut hear it shhhhhhhhh
try few lots Destiny.....

Posted by Datokim > 2013-09-19 21:12 | Report Abuse

i will listen to you again
if last 2 days got read your posting sure i hantam gocean, too bad now only read it.

Posted by tjhldg > 2013-09-19 21:31 | Report Abuse

harvard
bought .. .38 and .41 .. try take a look ,, weida & guh

Posted by 4u2c > 2013-09-19 21:55 | Report Abuse

u folks real lucky !! is there a takeover of this company ?

Posted by Ameera > 2013-09-19 21:58 | Report Abuse

Who is going takeover! Any news?

Posted by Zamri b Ahmad > 2013-09-23 08:16 | Report Abuse

Today is the AGM
......... any comment?

Posted by contrader > 2013-09-23 09:53 | Report Abuse

I thought the AGM is on 26/9/2013? http://www.bursamalaysia.com/market/listed-companies/company-announcements/1398069

Posted by dhuwit > 2013-09-23 09:53 | Report Abuse

AGM on 26/9/2013 this Thursdy

Posted by gynko3655 > 2013-09-23 10:55 | Report Abuse

Now a bit quiet. Everyone seems holding it tightly....

Posted by xyzsim > 2013-09-23 16:10 | Report Abuse

why hold tightly? any insider news ?

Posted by Ameera > 2013-09-23 17:05 | Report Abuse

And can sell too... Just hold tight then.....:( :(

Posted by ZBZ > 2013-09-24 12:14 | Report Abuse

Any news regarding this news?

On behalf of the Board of Directors of Green Ocean (“Board”), Kenanga Investment Bank Berhad (“KIBB”) wishes to announce that the Company proposes to undertake the following:

i) issuance of redeemable convertible notes (“Notes”) with an aggregate principal amount of up to RM100.0 million (“Proposed Notes Issue”);

ii) issuance of 50,648,750 free warrants (“Warrants”) on the basis of one (1) Warrant for every four (4) existing ordinary shares of RM0.10 each (“Green Ocean Shares”) held in Green Ocean (“Proposed Warrants Issue”);

iii) increase in its authorised share capital from RM50,000,000 comprising 500,000,000 Green Ocean Shares to RM100,000,000 comprising 1,000,000,000 Green Ocean Shares (“Proposed Increase in Authorised Share Capital”); and

iv) amendments to its memorandum of association (“Proposed Amendments”),

(collectively referred to as the “Proposals”).

The details of the Proposals are set out in the attachment.

This announcement is dated 26 August 2013.

Posted by Ameera > 2013-09-24 12:37 | Report Abuse

26th is the a EGM... Let's wait and see what's happened...:(
Haiyah....

Posted by lekirmanjung > 2013-09-24 16:11 | Report Abuse

wake up, wake up

Posted by taciturn > 2013-09-24 19:51 | Report Abuse

Ameera: AGM (not EGM) is on the 26th of September
ZBZ: The notes proposal is in the process of due diligence with the investment banker (Kenanga). From what I was told, the process is supposed to be complete by the end of this month or early next month. Once completed, it'll be submitted to Bursa/SC for approval.

Once/If all regulatory approvals, then and only then will an EGM be called for shareholders to vote on the notes program.

For those monitoring the day trading of the counter, someone seems to be accumulating a decent amount of shares. Today was T+3 from last Thursday (when the volume was 39 million) however today's volume was 8.6 million meaning there weren't that many contra players for that level of volume.

Also there were a number of large bulk purchasers off the open market over the past week (i.e. today after 3pm, one single buyer bought out about 1.4 million shares in queue at 20 cents, and minutes later another buyer (probably the same one) bought out almost 1 million shares in queue at 20.5 cents.) This trend has been repeated over and over for the past several days, although it occurs irregularly at best.

To see whether it's really an accumulation, watch out for trading tomorrow. T+3 from last Friday (volume at 20 million). If there's no sell off it should be firm that someone's accumulating. Sadly, any notification of interest in substantial shareholding (if any) will probably only be shown only on Thursday evening (26 September) which is 7 days after the big volume spike on last Thursday (19 September - 39 million). Meaning we'll only find out after the AGM is over.



There is a suspicion (this is wholly _unconfirmed_, take this with a pinch of salt) that there's going to be a proxy fight of sorts at the AGM come this Thursday (take a look at which director is up for reelection to understand :p). If the fight does occur, obviously the share price will likely spike up as both sides try to gain control of as many available shares as they can afford (for an EGM to confirm/replace the existing board of directors).

Note again, that this part is wholly unconfirmed. However if you're a shareholder (as of September 20) and are able, do attend the AGM as it might prove interesting.

Posted by gtlam > 2013-09-24 20:20 | Report Abuse

taciturn

can buy at this price 20.5 cents? please advise. Thank you.

Posted by taciturn > 2013-09-24 23:09 | Report Abuse

gtlam: I won't make any buy/sell recommendations.

What I can tell you are the risks. This is as what was told to me by someone who knows a lot more about the company. I produce here an email from him to me that I received from a week back. (September 17)

"GOcean's unaudited net tangible asset (NTA) is 6.25 sen as of 30 June of this year. The company's main business of palm kernel crushing/refining has come to an almost complete halt due to very low margins and the company's lack of financial muscle to buy, crush/refine and hold/sell. (holding power is essential in case the price goes down)

The other hopeful business is their Novelin palm oil. Unfortunately, ever since signing an agreement to supply to a subsidiary of Sime Darby (for sale of Novelin in Korea) late last year, there have been no orders from Sime Darby. Sime Darby is not the quickest and most agile of firms, but this lack of momentum on their part has caused GOcean to fall into dire straits.

So in other words, the company at this time is not really generating any revenue whilst having to meet its expenses (payroll, utilities etc).

Here are the things that might cause an improvement in company's fortunes/share price.

1. Takeover attempt. This is totally unconfirmed and has to be taken into context with what has happened in the past month (as per previous mails). Why did Ng sell down his stake so viciously over one month? He could have gotten a better price (and lowered his losses) by doing an off-market transaction or by paring down his holdings more slowly. The rumours/suspicion here is that he's farming out his stake to proxies who can act on his behalf when/if an EGM is called to appoint a new board of directors. Forcing the price down also causes a lot of margin calls to come up, giving better opportunities to flush out allies of the existing board.

2. An order finally comes from Sime Darby. This would be the light at the end of the tunnel since it'd finally mean some (not much) revenue for the company.

3. Breaking off their agreement with Sime Darby and partnering with someone else. This is what I personally feel they should do. However I think the sentiment that GOcean's management has is that "the order from Sime Darby could come any day now! What if we cancel just before the order comes."

Posted by taciturn > 2013-09-24 23:11 | Report Abuse

4. Notes program being approved. Earliest this can happen by my calculations is sometime in late October. The big risk here is that the share price is very close to 10 sen (par value). One of the clauses for default for the notes program is if the share price goes below par value for 3 consecutive trading days. Now if the share price should touch 10 sen or below, I believe Bursa/SC will automatically reject the notes program. I.e. why issue the notes program when it can almost immediately go into default?"


Here are some comments from him on the notes program:

"The notes program is interesting from the perspective of the shares being goreng-ed/played up. The interest rate for the notes program is 2% which is obviously not something that the notes holder is after. (heh, 2% a year for 3 years. He makes RM6 million from a RM100 million loan? XD)

There are two methods for converting the notes to shares. I'm going to ignore conversion method A (look it up if you want) as it's unlikely the notes holder will use that.

Conversion method B is that they hand in notes in exchange for shares at a discount of 15% to the lowest average market price for 3 consecutive trading days in the last 45 days.

I.e. if the lowest average price for the last 45 days that occurred for 3 straight days is 20 sen. That means the shares are issued at 17 sen.

Let's take a hypothetical scenario. Assuming Gocean's share price stands at 20 sen, and is static at 20 sen for three whole years (the entire duration of the notes program).

The GROSS profit the notes holder makes is 3 sen a share. 15% profit margin. So out of RM100 million, he makes RM15 million profit. For 3 years!

That works out to less than 5% per year, compounded. And this is gross, before management fees that he charges his clients etc.

No private equity investor into the guy's fund would be satisfied. XD

In other words he needs the share price to have a high beta, the bigger the spread the better for him to make money.

Also, the notes program has an agreement that he cannot own more than 15% of the paid up capital of the company at one time.

Meaning everytime he converts he has to dispose off the shares, and he has to do it fairly fast too (since his total timeline is three years to convert).

I.e. at 20 sen average price, conversion price of 17 sen, that comes to 588 million shares. Gocean's paid up capital is about 203 million shares. Meaning he can't hold more than 30 million shares at one time. He has to dispose it and fairly fast to convert more. If he does an Ng (selldown like mad), he'll be shooting himself in his own foot and end up selling at a loss.

So yes, if the notes program is a go, expect some goreng-ing to occur.

But the notes program if approved will only be active sometime at the end of the year, earliest.

For now, I'd lump GOcean into an extremely high risk/low fundamentals category. You guys wanna invest, go ahead but don't go in heavy or you can really get caught. If the notes program gets rejected, the company will likely be kaput."


Anyway those are the words from someone who knows the situation better than me.

Posted by tonylim > 2013-09-24 23:53 | Report Abuse

Taciturn.. thks for sharing.
Interesting. Never heard of Notes before.

Posted by taciturn > 2013-09-25 09:00 | Report Abuse

Subramaniam: You have valid points there. To clarify a few things though:

(Note all this again was explained to me by a friend who knows more than I do. I'm just going to repeat what he said, but using my words)

1. Heshbon selling down - They're a listed company on the Korean stock exchange. The reason they sold down their stake is well, because they're performing as badly as GOcean in their industry (they manufacture elevators). If you have the inclination, search for them online and take a look at their financials.

2. Valid points on Voon, Kua and Ooi selling down.

3. Ng selling down, see my previous posting on that possible scenario. Also, of interest, from what I was told he had requested for a board seat. The fact that the nomination committee appointed Richard Lee as an independent director (and definitely not Ng's appointee) no doubt pissed him off as no additional appointment his way was forthcoming.

An alternative scenario for Ng's selldown is that he wanted to punish/hurt the company as much as he could. Not very logical though since at the end of the day, all he did was to burn himself badly. Ng's average purchase price is supposed to be around the 30 sen range. So he took 35-45% loss.

4. Novelin is a well thought off product. Just the fact that it's not being sold is the problem. Take this factor into account, the retail price of Novelin is expected to be in the USD7-8 range per litre. The profit margins if there's a take up is huge. Note though, this profit will be experienced by shareholders only from the expansion of the plant (through the notes program). Their current agreement with Sime Darby merely makes them a contract manufacturer earning a small profit for each litre produced.

5. I don't think the RCN is a smoke screen. _If_ it happens it'd be amazing for the company as a lifeline. The difficulty here is getting all regulatory approvals to be passed. Think about it, what downside does the company have to it? Getting an up to RM100 million loan for a company with a paid up of RM20 million (and NTA of RM12-13 million) plus the fact that you most likely don't have to repay the loan (assuming all notes are converted) is a huge plus plus point.


However, with respect to note 4, if you're not invested in the company at the moment, you're better off waiting UNTIL the notes are approved by Bursa/SC. Then it'd be worth buying in (if you're the type who likes to trade on speculative stocks).

Until then, caveat emptor. Buying into GOcean is extremely high risk.

Posted by taciturn > 2013-09-25 09:02 | Report Abuse

For the above: Make that "with respect to note 5", typo. Meh.

Posted by gtlam > 2013-09-25 20:45 | Report Abuse

taciturn

thank you for your valuable advise.

Posted by xyzsim > 2013-09-26 12:42 | Report Abuse

what happen ? keep dropping ...

Posted by Ali Baba > 2013-09-26 13:53 | Report Abuse

AGM

Posted by sunrise > 2013-09-26 14:27 | Report Abuse

AGM over. All resolutions pass

Posted by Ameera > 2013-09-26 15:16 | Report Abuse

Why keep dropping despite resolution pass?

Posted by allblacks87 > 2013-09-26 15:16 | Report Abuse

Any positive note from the AGM, sunrise? Buy rate is extremely low and mostly sell transaction, contra I guess...

Posted by Hong2 > 2013-09-26 16:15 | Report Abuse

Keep dropping!

Posted by sunrise > 2013-09-26 17:03 | Report Abuse

sorry . i did not attend the agm. someone told me the resolutions have been pass.

Posted by sunrise > 2013-09-26 17:05 | Report Abuse

today t+4 force selling maybe

Posted by minitrader > 2013-09-26 17:05 | Report Abuse

CON STOCK...

Posted by allblacks87 > 2013-09-26 17:38 | Report Abuse

Taken from Bursa page, http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=0074

"The Board of Directors of Green Ocean Corporation Berhad is pleased to inform that all Ordinary Resolution Nos 1, 2, 3, 4, 5, 6, 7 and 8 tabled at the Tenth Annual General Meeting held on 26 September 2013 were duly passed."

Nt sure what exactly it is though.

Posted by taciturn > 2013-09-26 18:26 | Report Abuse

Well crap somehow my comment got removed. Bleh retyping it.

I didn't attend the AGM but my friend did. This is what he asked / overheard management answering to shareholder questions.

1. Sime Darby agreement - according to the MD, when they first signed the agreement with SD, they dealt with one division of SD that worked well with them and was gung ho for Novelin. Midway through, someone senior reassigned another division to take over instead. That division didn't work well with GOcean.

This is the reason why no purchase orders have been forthcoming from SD. However since then, SD has reassigned the original division to work with GOcean. So the MD was optimistic that orders should be forthcoming.


2. Director selling (referring to Kua specifically). MD said that Kua's selling down wasn't a vote of no confidence for the company or an attempt at arbitrage but due to the fact that he had certain financial circumstances that caused him to do so. No elaboration from Kua since he wasn't there by that time the question was answered.


3. Coup attempt obviously didn't happen (which is unfortunate for us shareholders, since if there were the share price would probably have spiked thereafter). What my friend did find amusing was the number of major shareholders (in terms of the top 30 list) who showed up or sent their proxies. Looks like this was for a "just in case" situation, heh.


4. Notes program. The MD revealed that another company (Censof) had earlier applied for a similar notes program (RM100 million) from the same firm that's doing GOcean's (Advance Capital Partners of Singapore) and that they have received most approvals for it. (From my friend's checking, he says Bank Negara has approved of it although they seem to still be waiting Bursa/SC's approval).

The difference between the notes program is the type b share conversion discount is 12% for Censof (versus 15% for Gocean) and the note funds can only be used for acquisition purposes by Censof (versus plant expansion and/or working capital for Gocean).

He was optimistic that since Censof looks likely to have it in the bag, the prospects for GOcean there are pretty good too. He stressed that approval for the notes program is not dependant on the profitability of the company, which makes sense.

Timeline for the notes to be listed, he's hoping for mid to end December.


Sorry I can't elaborate further on this. My friend is a bit annoyed that he didn't get a chance to ask that many questions from management before he left.

Posted by taciturn > 2013-09-26 18:54 | Report Abuse

subramaniam,

All the directors were at the AGM. Shareholder questions were answered at the end of the AGM. By the time that subject came up, Kua had left the room to go outside.

Err, don't understand the off market deal. Whether you sell as per usual via your broker, or whether you arrange it with a specific buyer, you're still disposing your shares. Your point is moot.

No idea about Voon's sales. Don't know if anyone asked about it.

Ooi is an independent director with a very small shareholding. I don't really consider his sale to be anything major.

Posted by allblacks87 > 2013-09-26 19:00 | Report Abuse

taciturn, whats ur TP for this share in short term n is it worth holding on? Majority of transaction today was sell, kept going down for the whole day..

Posted by gtlam > 2013-09-26 23:13 | Report Abuse

who is holding the block of shares disposed by ng?

Posted by taciturn > 2013-09-27 00:13 | Report Abuse

gtlam: No clue. One thing the MD did say is that the number of shareholders has grown by 200 since the last time they received the shareholders register. (This implies that a lot of new buyers probably picked up the bulk of Ng's shares) My friend says that this (the register) is updated to the company on a monthly basis and he'll try to get a copy of the register after the end of the month and let me know what the big changes are.


subramaniam: This was a question that my friend asked before the AGM and here's his answer (email quote as follows):

"Asked why palm kernel crushing margins are dropping resulting in them doing very little of the business at the moment (which is why revenue dropped to less than RM7m last quarter). As he explains it, in the past GOcean actually purchases the palm kernels from plantations. They then crush it, extract the oil and sell it (and the husks) for a profit. However palm oil prices are very choppy at the moment, and the company just does not have the financial capacity to maintain holding power.

This makes it very risky for them to continue doing in business in that manner. So in the interim they've become a contract manufacturer to plantation firms to crush and extract the oil using their kernels whilst charging them a fee.

Unfortunately such jobs are few and far in between. Major plantation firms have their own kernel crushing mills and don't use GOcean's services. The contract margins for such jobs are extremely low (3% is not unheard of)"


Prior to this I thought that GOcean was acting only as a contractor in doing palm kernel crushing/refining. The answer does make sense though. The larger plantation firms have their own mills, so you're relying on smaller plantation holders to use your services. At the end of the day, the industry is very low-technology and it's just impossible to act as a contractor and survive. So in the past GOcean acted as a palm trader directly. Now that's a very difficult thing to do when you look at the company's financials.


allblacks87: I still believe that the share price was pushed up to the 20 sen level because someone (probably on the existing board/management's side) was buying up all the shares in case a coup attempt was made during the AGM. The fact that so many of the big shareholders showed up at the AGM (all of whom are believed to be friendly to the MD) implies that.

Since the AGM went smoothly there's no reason to keep soaking up the shares and now it's up to market forces.

Personally I think the price will probably drift fairly close to the 15-16 sen level and stay there. It's been shown that someone (again, friendly parties I guess) had supported the price strongly when it hit the 13.5-14 sen level.

Will it go back to the 20 sen level in the near term? Personally doubt it. But I don't see the friendly parties allowing the share to drift below the 13.5-14 sen level since everyone's still banking on the notes program succeeding.

My personal advice if you have the holding power, and you like the logic of the notes argument even with the company's bad financials. Sit and ride it out to the end of the year.

No holding power, you're better off cutting your losses if not in whole at least partially. Reinvest in the company only when the notes program is a go.

Also, I'm fully expecting the quarterly results for Jul-Sep 2013 to be even worse than April-Jun 2013. You can probably expect the price to go down when it's released (at the end of November).

FYI, this is all my personal sentiments. I'm sure as heck not a professional trader. If you have a chance to seek professional/more experienced advice do so.

And just to clarify, I have a relatively sizeable stake in the company (500K+) that is without a doubt, out of the money right now. :(

Posted by allblacks87 > 2013-09-27 02:00 | Report Abuse

Thx for the advice taciturn, I went it at the wrong time by juz relying on the TA without knowing the FA related issue.. Guess gone cut short the loss and move on to a different counter..

Posted by minitrader > 2013-09-27 09:15 | Report Abuse

in my earlier post, I did mention that this is a con stock. avoid this counter...

Posted by Hong2 > 2013-09-27 09:33 | Report Abuse

Perhaps YES! I m stucked for more than 1 year... Praying this counter will not kaput!

Posted by Ameera > 2013-09-27 13:34 | Report Abuse

Damn! Will it kaput soon?

Posted by sunrise > 2013-09-27 14:06 | Report Abuse

who is actually behind the board?

Posted by gtlam > 2013-09-27 20:24 | Report Abuse

rumor talk- related to fromer banker dato chua son?

Posted by taciturn > 2013-09-30 18:14 | Report Abuse

From bursa announcements. Richard Lee's (the newest independent director) bought 500,000 shares @ 17.5 sen on the 19th of September. Total stake up to 4.724 million.

Interpret this on your own. I make no judgement calls.

Posted by taciturn > 2013-09-30 18:15 | Report Abuse

Amend the above to read "Richard Lee's (the newest independent director) wife"

Posted by Ameera > 2013-09-30 19:08 | Report Abuse

Ya lah... Do little at 500k Samore at so cheap price 17.5! KNS... I stucked at so much higher price!