Guys, want to find out if Tamcorp (Mesdaq: Tech 0.335sen @ 13/2/09) worth buying? You see, this counter is reducing its par value to 0.20sen (current: 0.50sen). Thus, returning 0.30sen TE per share to shareholders. This mean I pay on 0.035 sen per share only.

After ex, will the share price drop to 0.035 sen? I really don't know. Pls advice as the ex date is very near.

tq

This post has been edited by lordwood: Feb 16 2009, 03:39 PM

After capital reduction of RM0.30, i believe they will refund you back the RM0.30 and the price will reduce to RM0.035 per share.

Everybody started to goreng this counter at RM0.305 after the announcement because after all it will only cost 0.005 per share and hope others will join the goreng session.

WHen the goreng session will start ? Tomorrow ?

Bare in mind, this counter is without any core business after selling off its business which has violated the KLSE listing rules, if the company fails to inject new businesses into the company by the date line given by KLSE for its fulfillment of KLSE listing rules, it will be delisted. The final date line given by KLSE previously is 31 March 2009.

In a poor market condition, it is very difficult to find third party to have backdoor listing. The only way is company to acquire other businesses, but there is no guarantee of it.

So this is the primary risk of it.

Yes, i did some analysis and it does not have any core business. Just relying on interest income. Also this company paid out to shareholders $$$ gained from selling its switchgear asset previously. Huge sum and benefitted the main shareholders obviously.

The SC has extended its deadline for the company to get a core business by 31 April 2009. However, the company has announced it is talking to a few parties to get things right. Wonder how right is the word?

So cherroy, you are right. But I also understand to delist a company, SC and BM need some procedures in place as this is unlike the PN14 or PN21 situation. Its set of account is in place.

Not a very sexy company though because its parent Ancom & Nylex is almost in the same boat. What is happening to the same group of Senior management? The Smiling family (siew). What are they trying to do to revive it?

The procedure is academic and paper work only which is not that troublesome. No much difference than others, once company not fulfilling the listing rules, then it is the same procedure only.

Just for this kind of issue (GN3) without core business with cash, they are more lenient and extension generally always being granted, but this cannot last too long.

Delisting just mean the company share no longer being traded in KLSE, it doesn't mean they need to dissolve the company. Company still exist and shareholders remain as shareholders. But as minority shareholders in non-listed company, it is as good as toilet paper most of the time.

Sifu Cherroy, thanks.

Can I assume that if anybody hold this share even though they are reducing the par value and shareholders get back some $$$, it is better to sell before ex date?