Shares belonging to suspended Silver Bird Group Bhd managing director Datuk Jackson Tan totalling 2.01 million were force-sold at prices ranging from 18 to 18.6 sen from March 14 to 20, filings with the stock exchange show (Star Mar 24).
Silver Bird is holding on quite well at 18 sen attracting some support from retail players. Continued forced selling by bankers would hamper any attempt by the market to push Silver Bird to higher price. The financial position will remain unclear until results of forensic auditing is known.
Bro rambutan10, the directors presently only has 5% stake in the company therefore could it be that the price is being jacked up for them to dispose the last remaining share.
HAHAHAHAHAAH!!!White Knight meant SAVIOUR... it is likely Tabung Haji was GANDALF and Koperasi Permodalan Felda was Aragon that will rule MidEarth after banish Jackson Tan aka Sauron....hahahahahahahaha the next step is merger between any food manufacturer like Gardenia or Sunshine... =0
As rumored, the white knight most likely would be TH and Felda, both who has no business sense yet alone FMCG! And in the event it does happen, VT would be extremely happy to give up his 21pct and kick High5 out of 7E which is the biggest reseller for High5 cream rolls and buns! And that spells, 'kick the bucket' for silverbird! trust me, this has always been what VTs son 'Yao Ming' wanted to do a long time ago, but due to VTs VERBAL agreement with DJT it can't be done! Now since father has retired and DJT is out, I'm sure this WILL COME TRUE! If I were a punter, I will go gamble at the casino! At least the chances are calculated! Good luck guys!
Times will tell guys ......... strong brand name and crap management , potential target for M & A through the chinese whispers !!!!! 0.25 could be an attraction as going concerned !!!!!!!!
The biggest risk for Silver Bird is capital reduction even if there is possibility of white knight coming on scene. No businessman would buy liabilities. They would reduce the shareholding to such level as to reflect the real financial position before they are willing to pump in fresh capital. This is to protect their capital from being diluted. Perhaps, it is worth waiting until restructuring plans are revealed.Certainly there is some value in the strong branding of the company.
Currently SB has 400,000,000 shares @ Par Value of 50sen each which has a total capital value of RM200 million. Due to the losses incurred recently, net asset value of SB share is only say 5 sen per share which will work out to a total capital value of RM20 million. The white knight would propose to reduce the existing shareholding of 400,000,000 shares to 40,000,000 shares of 50 sen each to reflect the actual capital. This means 10,000 existing shares (with asset of 5 sen each) will be combined to form 1,000 new SB shares of 50 sen each.
By pumping in RM20 million to buy new issue of 40,000,000 shares, the white knight would end up with 50% control of the company.
All these figures are hypothetical for illustration only. You must wait for actual details of SB's financial position to determine the extent of capital reduction, if they opt to do it.
I'd say SB will likely undergo a capital reduction since it doesn't have the option of calling for a rights issue. If I'm not mistaken, rights must be at least at par value and not less. Who in his right mind would want to subscribe for 50 sen/share when you can get it at 15 from the open market? Only then can it call for a rights issue. Many companies have done it this way during their restructuring. SB's NTA *is said* to be 52 sen. But a stringent auditing might reveal a figure of much less.
Anyway, speculating-wise -- regardless of the financial mess SB is in, I would say there should be *some* value left in it, no?...that it won't go totally down the drain...? Let's consider these: (1) The negative aspects are now all *mostly* known. We are just waiting to know about the exact financial situation from the current auditing. (2) What other nasty surprises could there possibly be? (3) The bad news has already been factored in its current price.
So, how much lower could it possibly go - would it go below or close to 10 sen? Your guess is as good as mine. But to me it should be at or very very near its bottom. In the event of some sort of positive news, there's a very real possibility it would rise to 20 sen and above. Percentage-wise, that would translate into some serious $$$ since it's a counter that you can easily own at least 50, 100 or more lots. I'm weighing the reward-to-risk and decide whether I would dare to take the plunge.
Fugitives had disposed their shares , sadly not at rock bottom price but however, it present new opportunity for new big investors for future control !!!
rumours is massimo want to buy into silver.this si also what the staff told me too bcos their factory is strategically located in shah alam while massimo is in pulau indah
Heading north gradually to TP 0.20 & beyond , Silver Bird II is trading well and showing encouraging indication for the next year end .................
Be careful about the price movement Silver Bird. Forensic report identified 12 irregularities in the Silver Bird account. They have not quantified the actual amount of losses involved.
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....
rambutan10
16 posts
Posted by rambutan10 > 2012-03-23 10:58 | Report Abuse
buy silver now..0.18&0.185!!!!!