Hi Guys, For Kheensan news see comments on London Biscuits Forum. Kheesan by itself is good, but it is on the foundation of London Biscuit. Management must pare down borrowings.
Anyway PM Corp(4081) is a far better buy than both london biscuit and kheesan.
Go to PM Corp Forum and STUDY THE WHO TREAD VERY CAREFULLY NOW.
Need to prop up the shares price so that LONBIS' book will look good, now that so much voices were heard for the management to pare down the debt. Where can you inflate value of your investment immediately since so much money were poured into PPE except the KHEESAN shares price?
Today share price touch the highest in this year, 0.575. Will Kheesan record another new high tmr? The price now is still very cheap compare to its NTA 1.59. The only concern is the gearing level is a bit high.
London biscuit is holding 32.87% of Kheesan which acquired at 1.20 per share few years ago. Now the price even drop more than 65 % from 1.20 but Kheesan only got 60,000,000 shares capital only, super easy to push.
Icon88888888, appreciate if in your article you would explain (if you know why since you said your article is based on fa) why their investment in Kheesan has to go through a near-monthly churning of Kheesan shares in the market. The last churning was on March 11, 2014 with 4,761,000 shares and a gain of 12.61% or 7 sen.
I am fully aware of why they have to do this. Just want you to write a little on it, then I will whack them (both LONBIS and KHEESAN) in the public.
Khee San is one of the largest and most established sweet manufacturers in Malaysia. It has a market cap of RM50mil. Trailing PER is 12x. Price to book is a steal at 0.6x. The land on which its factory is located on the outskirts of KL is worth about RM40-50mil. It is located a couple of km from Sunsuria's major project.
This is interesting. The ESOS is issued (at the minimum price of $1.00, being Kheesan's par value). How on earth the employees are taking up the ESOS at a loss of $0.39 per share, considering that the ESOS is at $1.00 and yesterday's closing price is $0.61?
If my presumption hold true, these 5,450,000 shares must have been taken up by the Liew's family, being the directors and key management staff of Kheesan.
The next question then will be why the Liew's family is willing to take the hit of a $2,125,500 loss (being $0.39 x 5,450,000 shares) ?
But don't ever try to short change the shareholders of Kheesan, by re-routing the $5,450,000 cash back to LONBISC, as I don't see why Kheesan needs the new fund more than LONBISC which had already chalked up in excess of $200m of loans and capex
And I don't like the way DS Liew Yew Chong spend LONBIS advertising money in sponsoring MediaCorp TV50 Award http://www.youtube.com/watch?v=GhpaAq_VUxU, although I am not a shareholder of LONBIS
For this, I will spare him the bombarding here by leaving the firing squad to the rightful shareholders of LONBIS, to question why he spend this huge money in a market that LONBIS market share is only less than 5% of total LONBIS revenue
Being a young man, I can see his eyes glows with the limelight from this kind of high life. I don't blame him for enjoying what he likes, but please don't do it with the shareholders money. This kind of spendthrift habits only goes to demote one's reputation
If the ESOS is NOT issued at $1.00 and at market price of say $0.61 per share, that mean Kheesan will have to enter a negative share premium of $0.39 per share into the reserve account of the balance sheet. That is -$2,125,500 in the Reserved together with retained earning of Kheesan.
Although the sum of $2,125,000 bears little influence in deciding a bonus issue later (some rich bugger like DS Liew who arrive in the media award night in a blistering Rolls Royce JJB9323)(but not sure whether is his, maybe provided by event marketing agency of that function, LOL) may shrug it that it is only a paltry sum
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