http://koonyewyin.com/wordpress/2015/05/04/how-to-improve-the-price-and-liquidity-of-latitude-tree-bhd/ Letter to the CEO of Latitude Tree Bhd. Dear Joseph Lin, Your shareholders register will show that my wife Tan Kit Pheng, my nephew Yap Sung Pang and I are holding more than 10% of your total issued shares. We must congratulate your management for producing such a fantastic profit. As a result, your share price has gone up very rapidly from Rm 1.00 to above Rm 6.00 in the last 24 months. You would have noticed that it has come down in the last few trading days because we have not been supporting it. Even though it is selling so cheaply in terms of P/E ratio, many investors and fund managers I spoke to, would not buy it because they are afraid that they cannot sell at some point due to poor liquidity. I would like your board of directors to consider my suggestion on how to improve the share price and its liquidity. Immediately give out 1 bonus share for every 4 shares held. Split one shares into 5 shares making 20 sen its par value. Declare to give out 1 bonus share for every 4 shares held for the next financial year. Declare a dividend policy of giving out 30% of net annual profit. After the completion of item 1 and 2 above, 4 original shares with one bonus share ill become 25 shares. Basing on the current share price of about Rm, 6.00, the new price will be about 96 sen. It is easier for 96 sen to move up to Rm 1. 92 sen than for Rm 6.00 to move up to Rm 12.00. Basing on your first half year profit of 45 sen per share and 100% of your products are being exported for US$, every investor can foresee your EPS for the year will most likely exceeds Rm 1.00. Moreover, you have additional income from your huge cash deposit with Banks. Your share should deserve to sell at a higher P/E ratio. A higher share price will benefit all the shareholders, including you, as controlling shareholder. Moreover, with a higher share price, the company can take advantage of it for acquisition of assets and share placement every year according to Securities Commission rules to get large amount of cash for company expansion. As one of the founders of IJM Corporation Bhd, I know that the company has been doing what I have described above regarding share placement and assets acquisitions to expand the company. Basing on the current IJM Corporate Bhd share price, its market capitalization exceeds Rm 13 billion. Koon Yew Yin
Dear Mr Koon, Thank you for buying 10% of the company's shares and pushing the share price up while so doing. We were advised you have been a significant shareholder in other public listed companies such as JTiasa and Mudajaya in 2014 but no longer. We as the management of the company would like our large shareholders to show loyalty and commitment to company business, not just be a fair weather stakeholder who makes money from trading the shares. If you have a sound business proposal for ours company, We will happy to hear from you. Otherwise happy holding. Joseph Lin
This blogs posted at 4/May/2015. we can see that still got people is supporting the price at April and June correction other than KYY. Share price for latitude tomorrow should be Ok.
Based on annual report top shareholder as at 30/Oct/2015. All this shareholder mentioned in above KYY letter still holding shares more than 10%. Can see that even KYY themselves also do not reduce their shares holding in Latitude Tree.
"Even though it is selling so cheaply in terms of P/E ratio, many investors and fund managers I spoke to, would not buy it because they are afraid that they cannot sell at some point due to poor liquidity. "
What a pile of BS nonsense. Well Dutch Lady has the same outstanding shares as Latitude. What is their PE? 20. and how many fund managers has Dlady in their portfolio? Too many
As promise with all other i3 forumers during yesterday meet up at latitude agm, we will not disclose any detail regarding on AGM. If you think it is bad news please sell it out when open market, We already keep our promise among each other. For your information only less than 50people attending yesterday agm. So the information is only know by limited person.
The director talk we listen Director talk so much that we can't raise our sound What a talkative director One news for speculator that the director is very strict against the speculation in this counter They will punish them severely upon identified
Hahaha.. People are very funny sometimes. Dear all, don't worry as this is a public listed company, communications will be disclosed. Some people act like they invested in a private equity. Haha..
And remember that there are more than one way to gain information. This is not 19th Century.
Those who attended AGM will have the advantage of knowing these information faster than others. But there are no hidden communication in this age. Information can be accessed anywhere. :D
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....
pingdan
1,549 posts
Posted by pingdan > 2015-12-10 06:07 | Report Abuse
From the respon we can see who is the director thinking inside his mind. Maybe he got valid reason. Maybe not