Honestly to me, share capital reduction is just like buying time to go to PN17 only. I do not know whether it is true or not, but seems like it.

But why timecom wants to purchase assets in order to get into PN17?

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Added on November 16, 2010, 11:39 amThanks!!


This post has been edited by yok70: Nov 16 2010, 11:39 AM

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Highway to delisting?

This company will never go into PN17

share cap reduction, imo has some serious effects on the account books. either it's provisioning for a future reduction in assets / or a greater increase in liability.

plus, if TdC was acquiring more assets, that means a reduction in share cap might be provisioning for a possible significant increase in liabilities.

This post has been edited by teehk_tee: Nov 16 2010, 11:48 AM

how can timcom go pn17 while licensing the network to DIGI?

The share par value is RM1.00, but NTA ony Rm0.4x.

It is the other way round, the capital reduction is essential to avoid PN17 in the future, and need newly injected business to revive the company.

Shareholder fund cannot less than xx% of company paid up capital and it could trigger PN17 status, MAS did once before but granted exemption, as loss is come from write-off of oil hedge, I don't remember clearly on this rule, may be other can clarify on this.

Share capital reduction is like.

Every share has paid up capital like RM1.00, aka Rm1.00 is given as start up capital for the company.

But due to losses being made and accumulated, the company adopt capital reduction is like tell the shareholders, your previous invested RM1.00, now only Rm0.10.

i agree with ur views on top of the effects it has on the accounts.
either way its not a good signal when a company does that.

^^ Cherroy explains it quite thoroughly why I think it is only buying time before going to PN17.

Alot of Kencana report recently, means bad sign? CIMB hard selling


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Hard sell to retailers to buy so that they can offload the stocks?

You are really a good teacher, your ability of CISO (complicated in, simple out)

Now it seems those companies that being purchased by timecom (i read some are of the same boss) is either a good deal (since timecom's share is reducing its value) or they hug together in order to struggle to survive (all are bad companies).

you can talk tons of way how they dealing on the business
but overall people buying non stop yesterday....

every week also got kencana report, this week twice already ( today just tuesday )

pasting from the emails i got today.

OSK -
KENCANA (TP RM2.57 – BUY) Corporate News Flash: Lands Sarawak Shell Contracts

RHB-
Kencana:

¨ One more in the bag.
¨ Fair value has been raised to RM2.31. Upgrade to Outperform (from market perform previously)

This post has been edited by teehk_tee: Nov 16 2010, 12:00 PM

dont know. just ask me to hold on to it.

sunrise .

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Added on November 16, 2010, 12:01 pmthank you sir. next time, see capital reduction, RUN .

This post has been edited by GregPG01: Nov 16 2010, 12:01 PM

My friend who work in O&G field say it still have some contract incoming.

I hope Petronas Chemical listing will boost the price for me to dispose.