They short at both side and long + dividen . Something really not right. If buy Favco get dividen fair larr price move up. Buy Muhibah what will you get? Good luck lahhh like that.
In regards to Favco's dividend of 85 cents, Muhibbah as largest shareholders of Favco is a win situation for existing shareholders/ppl as we can deemed this is one of the way of raising fund for the company in replacement of issuing new share/private placement which would have direct effects of causing shares dilutions. My opinion only.
FFavco declares lucrative dividends, one after another, bcos most off the money goes to their pockets (besides Muhhibah) ..... Muhhibah SH don't get any (bcos more retailers in this ctr), in contrast, asked money from SH through RI (while not compelling for cash), share price dipped to breach RI price, this would even hurt those subscribed for RI ......
not only manipulate market price but enhance with company events .... price will only goes up when retailers give up ......
please sell. june just mass retrancement n mss n vss. their subsidary project in red. due to raw material skyrocket. 30cents coming soon. they keep all the senior stuff (not working getting free salary) and let go those that working
For those of you investing in Muhibbah, what's the bright spot? For me, it was the recovery of Cambodia airport after pandemic. Of course, Favelle was doing good too and will remain ok. To me, Favelle has become a cash cow for Muhibbah (squeeze dry already) and no longer attractive. Even with pandemic recovery, think again if Cambodia airport is gonna recovered. The scam in Cambodia is not only for Malaysian but basically all chinese people. Would you visit Cambodia again as tourists? The scam in Cambodia getting serious because China forbids their national to visit Cambodia for gambling/scam related issues.
1) issued and diluted shareholding by more than 50%. Most of the new money was used to pay just 10% of its debt. Balance of 90% still is due within 12 months. 2) People naively said that owners put own money into Muhibbah when committing to the right issue. But are you sure? They got the money by squeezing Favee Favco's reserve to issue unreasonable sum of dividend. Muhibbah's directors also own major shares of FF. So it's not out of their own pockets. They did so because they had no choice. If Muhibbah goes under, they will loss Favelle Favco to banks (as Muhibbah owns more than 60% of FF). 3) The reason why Muhibbah bought FF's shares few months back is that they want to direct most of the FF's dividend to Muhibbah to pay its debts. 4) Wise directors left because of these unethical management styles and hopeless situations. 5) Chinese are not coming to Cambodia anytime soon because of Chinese zero covid policy (in addition to other countries with safety concerns). By 2025 (less than 3 years), a new Phnom Penh international airport will replace Vincci & Muhibbah's. 6) So far, it only got a small JV project for 3 years, but it is extremely insufficient to finance its 900 billions debt. 7) With inflation and interest rate raising, there will be even fewer project opportunities (main objective of raising rate is to curb spending). And also that increases interest expense of its excessive debts.
With no banks or projects to finance its 900 billions debts, it has squeezed its own shareholders with right issues and FF's reserves. But macro environment has only made this situation even more miserable to Muhibbah.
A consortium led by oil and gas services provider Muhibbah Engineering (M) Bhd has secured a RM322 million contract from Petronas Carigali Sdn Bhd, the exploration arm of Petroliam Nasional Bhd (Petronas),
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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....
cicakman
7,777 posts
Posted by cicakman > 2022-05-06 15:47 | Report Abuse
Win Win Situation for shareholders of both but is it really benefits for those who just joined the party?