I think kinstel should close down Perwaja, delist it and restructure, take over its mining, concentration and pelletising plant, then kinstel can survive and progress. Why keep a losing business?
Delist Perwaja, all debtors will be forced to take on losses. Kinstel separates itself from Perwaja, start anew as mining company. Then only kinstel will recover.
Pheng family can only decide whether to bankrupt Perwaja or bankrupt Perwaja+kinstel. Pheng has 30% stake in Perwaja, at IPO rm2.50, nothing is left now. By closing Perwaja, kinstel can start anew, eventually earn back all money from mining. Kinstel has to let go Perwaja. Once Perwaja bankrupt, all it's debtors will bear the loss. Kinstel can avoid paying more money into Perwaja. Instead the money can be used by kinstel to start mining, earning money to rise up in the end. This is the only way.
I hope Pheng is reading my suggestions to them. At extreme conditions they have to make such difficult situation. Kinstel can still turnaround, but not Perwaja.
Many mining companies in Malaysia, in Pahang and Terengganu are earning lots of money-from Malaysia mining export statistics. None of them disclose their mines details. So I do not expect them to disclose mining details as soon. Mining can start soon, and earning cash cow. Initial capital commitment from kinstel financial report is adequate, just not into more Perwaja. Mining can at least sustain for 2 years, with about rm1 billion profit easily.
With mining, throw away Perwaja, kinstel can be rm1billion company in 2 years. Without mining, with more Perwaja burning all $$$ away, kinstel bankrupt. So what should them do? Quite obvious. They have to bankrupt Perwaja, and switch money into mining.
decide only when u see the 1/4ly result soon, rise temporary only, after repaid Petonas, where the hell can they get $$$ to pay TNB???Not to say the company profit
for kaki lima punters - a safer punt would be kinstel at this point but perwaja could easily surge higher than kinstel
1. he got many supporters and popularity just like dead artist comes back to life 2. he got many supplies of steels billet 3. potentially become target for acquisition since price is low despite hutang banyak - is like kuda sakit kasi rumput baru dan kandang baru naik lah dia .. kikiki
Both Kinsteel & Perwaja are making losses after losses. You must be swift to take profit. They are hit and run counters. Anyway, Ayam can do better than running - it can also fly.
Nak beri perwaja atau kinsteel hari Isnin, tapi sekarang sudah takut tangan kena goreng! Sila baca The Edge (terbitan 17-23 Feb, muka surat 10) baru tahu!
Quoting The Edge "Perwaja is given an 18 mth grace period to repay RM275.77 million owed to Petronas in 43 monthly instalment. May also strike similar arrangement for debt of RM200 million owed to TNB. Also owing banks RM1.36 billion short term borrowing, RM276 million long term borrowing and other payables due for RM693 million. 3Q13 loss was RM227 millions. Kinsteel debt is RM1.93 billion. Global steel prices are expected to be depressed......". Conclusion: high risk to speculate these counters.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
datuk
4,935 posts
Posted by datuk > 2013-07-24 09:13 | Report Abuse
peraja, perwaja, gua sangat suka sama lu !!!!!!