Briefly
The company was surrounded by accounting issue previously, now default 1 million interest payment (which relative speaking a small sum) for a company that has asset in balance sheet of 900+ million with 400+ million receivables.

Some more directors are constantly disposing their stake lately until cease become substantial shareholders, as well as resignation of indepedent directors.

The default could make the company being classified as PN17 company, which if there is no resolving on the issue, it could mean being delisted. By then it is not die die must buy, but all the money in the stock die.

Don't mean this stock has no future or got future. But this is serious stuff already (default in payment). Must do proper your own due diligence before investing,

Resort busines from its segmented business analysis from its 2008 report, showed it is not doing well, it made losses for the company.

So how can it do well?

Also its principal activities is in O&G construction or construction related, Resort business just part of it only.

No different, except it will be delisted by KLSE if there is nothing to rectify the situation by the company.

The degree of fall is similar, Transmile from 15 to 2.xx. Oilcorp previous years high was around 2.50, now less than 0.20.

The risk is not about share price alone, the main risk is they no longer listed, game over.

This is the primary risk why the stocks are sold down after being classified as PN17.

So invest bet on this stock, means one is betting the company will get out of PN17, as simple as that. Whether the company will or will not, is up to anyone guess.

In actual fact, slow die is more painful, because you don't cut loss in those slow die situation. But for quick dive/die situation like Transmile, at least people will scare and cut loss.

In slow die situation, today drop 1 cent, so you have the hope tomorrow up 1 cent back, but everyday keep on hoping like than after a year, 2.00 gone without much notice.

smartly,
You will confuse the forumer only by saying delisting doesn't mean a bad thing.

Just to make clear to the forumer
Delisting got 2 type,
1. Voluntary due to privatisation, (nothing bad)
2. Being forced by KLSE, violation of listing requirement (generally because of financial issue)

Now it is about 2.

The basic way company management or major shareholders can protect minority shareholders benefit (in 2) is to let the company stay afloat aka listing.

If they cannot do it, how can a minority stakeholder benefit can be protected under a private company?

Delisting doesn't must mean bankrupt (but generally under 2, means company doesn't in good shape in the first place), it means share cannot be traded at the exchange, so you have no way to sell your shares totally. So still concern about NTA, company profit?

Frankly speaking, from experience, the higher the risk, a lot of time turn out to be higher loss, not higher return.

It is true about investing, higher risk, higher potential gain. But it is more like a gamble right now instead of investing.

In investing, at least you know what your risk is, what you are facing with.

But in this issue, it is totally in unknown territory.

If it is the case, auditor should not let it to register in revenue and receivable previously.

Auditor scope is more than that.

They are the one responsible to check and verify whatever account stated is correct and true, that's why they are called 'audit' which based on documentation submitter by the company.

Otherwise, any company can just simple issue invoice and register as sales to jack up profit or simply create account out of nothing.

Auditor has the right to boot up dubious amount within the account, if they suspicious about it.

But auditor has no real-time pr real involvement in any company business operation, they only can audit within their scope that is based on documentation of the company and general industry practice.

Not related, Transmile acocunt was audited as well, which 'blown up' recevables get through auditor eye.

Not means Oilcorp would be similar, just we cannot said or guarantee that anything get through audit path, must be there, as said before, auditor audit based on paper/documentation, they don't know the details how company business operation.

But if revenue yearly is around 70-80 million, receviables 400+ million means your company average let people/customers owed you company for 4 years time, before collecting the payment?

That's one of important question.

The company facing cashflow problem, any solution must be able to raise cash one.

Wrong perception, no offence, the lower the share price goes, the higher the risk is.

Because if company is not in serious trouble, share price won't drop to a few cent in the first place.

Yes, you may gain high in term of % if there is turn around. But risk wise is pretty high.

High risk got 2 outcome high return or high loss. Not necessary high return.

The major risk is delisting now.

Please do a favour, no name calling, or personal confrontation issue.

We welcome any posts regarding stock discussion be it criticism or praise, but no on personal front issue.

Thank you for the cooperation.

It is not about taking sides which way. It is nothing wrong to comment the others wrong call.

Anyone can point out others' mistake, wrong decision/comment etc issue, nothing wrong with it or talk good about the stock whatever it is individual view, we always welcome.

But do not call other 'loser' or whatever that lead to personal confrontation issue. We are here is to talk about stock, not about individual.

Thank you for the cooperation.

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