Cinema-Blend-whereiszemoola

Utterly ludicrous.

The frequency of the newspapers publishing a multi-million/multi billion 'news' based on un-named sources only to have the parties involved denying the whole story.

And what do we have here?

Isn't it so clear?

Print a story, stock goes up, then the story is deemed as false.

And the dumb money will ask what if the story is fabricated for monetary purpose???

How?

Not possible?

Think about it.....

And look ahead the beautiful scenario if this keeps happening, ie nothing is done to stop such un-named source based news.

What do you see?

What do I see?

Well I see more story will be fabricated so that a monetary can be derived once the stock mentioned goes up upon the publication of the fabricated news.

Which means our financial press is now nothing but a tool so that stocks can be manipulated.

Like this scenario?

I think it is ludicrous, it's appalling, it's sickening.

It's 2013 for heaven sake.

Do you want our financial news be financial news or not?

Or do you want our financial news be nothing but fabricated news?

Don't we all want to see improvement???

From yesterday's posting Why 'According To Sources' Financial News Should Be Stopped

Published on Business Times:

• DRB-HICOM to go private?
  
  Published: 2013/01/10
  
  FIRST QUARTER TARGET: Tycoon Syed Mokhtar may make standalone offer, says source
  
  KUALA LUMPUR: Tan Sri Syed Mokhtar AlBukhary may make a standalone offer to privatise DRB-HICOM Bhd, the country's biggest automotive company, people working on the plan said yesterday.
  
  Business Times understands that the plan is being helmed by privately-held Meridian Solutions Sdn Bhd. Meridian is a unit controlled by Syed Mokhtar's top financial aide, Ooi Teik Huat.
  
  The low-profile 53-year-old Ooi is one of the Syed Mokhtar's top backroom boys, who sits on the board of many companies in which the Kedah-born businessman has a controlling stake.
  
  Ooi currently sits on the board of Malakoff and MMC Corp Bhd.
  It is further understood that Hong Leong Bank Bhd and Public Bank Bhd are the two top banks working with Ooi on the privatisation.
  
  "Hong Leong and Public Bank will help provide the financing for the exercise. It is scheduled to take place in the first quarter of this year," said the source.
  
  Business Times was also told that DRB-HICOM could be taken private for between RM3.50 and RM4 a share, and that the exercise will be solely driven by Syed Mokhtar, who controls some 55 per cent of the company.
  
  Syed Mokhtar, 61, could fork out as much as RM7.73 billion to take DRB-HICOM private.
  
  The exercise comes barely a year after he bought Proton Holdings Bhd at RM5.50 a share or 24 times estimated earnings.
  At RM4 a share, DRB-HICOM is valued at RM7.73 billion.
  
  The stock closed at RM2.63 a share yesterday, giving it a market capitalisation of RM5.08 billion.
  
  "None of the other shareholders are involved. It is a standalone bid as DRB-HICOM is severely undervalued. Its landbank itself has a net worth of RM10 billion," said the source.
  
  Neither Syed Mokthar nor his representatives on the board of DRB-HICOM have briefed the board on the planned exercise.
  
  "When they are ready with the money and the numbers tally, they will file in straight the offer to take DRB-HICOM private to the company secretary," said the source.

On today's Business Times again.

• DRB-HICOM: We've not received any privatisation proposals
  
  Published: 2013/01/11
  
  KUALA LUMPUR: DRB-HICOM Bhd is unaware of and has not received any proposals to privatise the country's largest automotive group.
  
  DRB-HICOM managing director Datuk Seri Mohd Khamil Jamil said the group was surprised by the news like everyone else.
  
  "Let me clarify that there has been no indication on the group being privatised as alleged in the papers. For the time being, DRB-HICOM is in a state of rationalising Proton (Proton Holdings Bhd) as well as its operations," Mohd Khamil told reporters here yesterday after launching the all-new Suzuki Swift.
  
  Mohd Khamil was responding to a Business Times report that Tan Sri Syed Mokthar Al Bukhary, who controls some 55 per cent of DRB-HICOM, may make a standalone offer to take the group private.
  
  The low profile businessman had not notified the DRB-HICOM board about his intention, but would only do so once he has secured the financing to make the offer.
  
  It was reported that the plan is being helmed by privately-held Meridian Solutions Sdn Bhd. Meridian is a unit controlled by Syed Mokhtar's top financial aide Ooi Teik Huat.
  
  Ooi currently sits on the board of Malakoff and MMC Corp Bhd.
  
  DRB-HICOM reportedly could be taken private for between RM3.50 and RM4 a share, meaning that Syed Mokhtar, 61, could fork out as much as RM7.73 billion. The exercise would come barely a year after he bought Proton Holdings Bhd at RM5.50 a share or 24 times estimated earnings.
  
  At RM4 a share, DRB-HICOM is valued at RM7.73 billion. The stock closed seven sen higher at RM2.70 yesterday.

Over the past years, we have seen it over and over and over again. The financial press highlights an extremely juicy piece of financial news based on an unknown source. (Do refer According To Sources ). It's a million dollar deal and the stock mentioned then jumps higher upon the publication of the news, only to come crashing down once the parties involved denies the news.

Recent case? No Such Timber Concession!

Easy way out for the publishing newspaper is claiming a bad source or a bad mistake from their financial reporter.
Which makes me wonder. What good is the financial reporter if he/she is incapable of verifying the facts?

But the most damning would be the public questioning if the news was cooked up by the source or syndicates in an attempt to derive profits from creating such news.

It gets messier once the public questions if our financial news has now become a tool for the syndicates to broadcast their cooked up financial news.

Or what if the public asks if the financial news paper is in cahoots with the syndicates?

Whatever the reasoning, once the financial news based on unknown quoted sources, is refuted by all parties involved,  the financial news becomes a laughing stock.

Some might even asks why bother buying the newspaper at all, if the news published is based on such shady sources?

Best solution?
Well, if I may, I believe it's high time for our financial news editor to wake up and clean up this mess. Get the reporters to verify their source.

The public wants and deserves to read credible news and not news cooked up as a means to gain richness.

The authorities needs to look into this shenanigans.

Less we forget that it's also a waste of public money to have our corporate leaders of the corporations  mentioned in the news, take time off from their daily work to address such baselss news reporting.

And today, what do we have?

Business Times has published yet another source based financial news.

Sigh!

Yeah... sigh!

DRB, the stock mentioned, of course is currently moving higher SOARING HIGHER based on the news. Want to guess what happens once the news is denied?

• DRB-HICOM to go private?
  
  Published: 2013/01/10
  
  FIRST QUARTER TARGET: Tycoon Syed Mokhtar may make standalone offer, says source
  
  KUALA LUMPUR: Tan Sri Syed Mokhtar AlBukhary may make a standalone offer to privatise DRB-HICOM Bhd, the country's biggest automotive company, people working on the plan said yesterday.
  
  Business Times understands that the plan is being helmed by privately-held Meridian Solutions Sdn Bhd. Meridian is a unit controlled by Syed Mokhtar's top financial aide, Ooi Teik Huat.
  
  The low-profile 53-year-old Ooi is one of the Syed Mokhtar's top backroom boys, who sits on the board of many companies in which the Kedah-born businessman has a controlling stake.
  
  Ooi currently sits on the board of Malakoff and MMC Corp Bhd.
  It is further understood that Hong Leong Bank Bhd and Public Bank Bhd are the two top banks working with Ooi on the privatisation.
  
  "Hong Leong and Public Bank will help provide the financing for the exercise. It is scheduled to take place in the first quarter of this year," said the source.
  
  Business Times was also told that DRB-HICOM could be taken private for between RM3.50 and RM4 a share, and that the exercise will be solely driven by Syed Mokhtar, who controls some 55 per cent of the company.
  
  Syed Mokhtar, 61, could fork out as much as RM7.73 billion to take DRB-HICOM private.
  
  The exercise comes barely a year after he bought Proton Holdings Bhd at RM5.50 a share or 24 times estimated earnings.
  At RM4 a share, DRB-HICOM is valued at RM7.73 billion.
  
  The stock closed at RM2.63 a share yesterday, giving it a market capitalisation of RM5.08 billion.
  
  "None of the other shareholders are involved. It is a standalone bid as DRB-HICOM is severely undervalued. Its landbank itself has a net worth of RM10 billion," said the source.
  
  Neither Syed Mokthar nor his representatives on the board of DRB-HICOM have briefed the board on the planned exercise.
  
  "When they are ready with the money and the numbers tally, they will file in straight the offer to take DRB-HICOM private to the company secretary," said the source.

 Everything is based on the source.

The source throws in a seductive $4 per share privatisation and with DRB only trading at 2.63, isn't a no brainer the stock currently is flying much higher?

So once the story is denied, let me ask you, is it OK with you that our financial news is used to promote a stock so that certain parties can cook the stock much higher?

In reference to this morning's posting: And DRB Went Into A Meltdown During Trading At Close.. Guess Who Came For Dinner, the financial edge carried the following explanation : here

• Sources said the substantial decline in the stock’s price within 10 minutes prior to the close of trading happened when transaction instructions for three million DRB-Hicom shares by an institutional investor were keyed in wrongly by the brokerage. “It is believed that institutional investors had wanted to buy the shares (at the lower price of RM1.95). But the transaction was keyed in as a sell order instead,” the source told The Edge Financial Daily yesterday.
  The error, which occurred at about 4.50pm, had seen the three million shares transacted at RM1.95 until the closing bell. Prior to this at 4.48pm, the stock had changed hands at RM2.28, unchanged for the day.

Let's get this straight.

First the evidence once more.


Look at the data.

DRB was trading between 2.28 and 2.27.

So according to this source, the said institutional buyer wanted to key in buy. But apparently a mistake was made.

Ooopsy daisy me... the buyer keyed in sell instead.

Now let me be generous... and understanding... and trust for a moment that .... mistakes can indeed be made.

Is this ok?

Is not a problem for me.

Let's believe it is so.

Now let's think about the action again.

This is said to be an institutional investor. ( Hmm.. how I wish the name is given! )

Institutional investor, my friends.

Not any ordinary koptiam share market player hor.

So this INSTITUTIONAL INVESTOR wants to buy.... but the stock had been trading in a tight range all day... mostly between 2.27 and 2.28.

And this INSTITUTIONAL INVESTOR suddenly can come up with the brilliant idea to buy DRB at 1.95? (some 33 bids lower??)

And the order was keyed in at 4.50 pm... just when trading at last starts, just when no subsequent buy/sell transaction can alter this transaction price. ( Which means that this transaction will then become the closing day price! )

My say?

What a load of ketam!!!!!! 

Can anyone give me a 14 million reason why it just so happen that yesterday closing price of DRB is so important?

The following chart says it all....

Look at the last 2 transactions!

All done during trading at close.

Someone deemed it fit that DRB, which was trading between 2.28 and 2.27, should have a meltdown during trading at close.

Someone deemed it fit that DRB be traded some 33 bids lower.

Someone, on the other hand, was brilliantly smart to queue for DRB at 33 bids lower.

Someone, on the other hand, just knew that they would be lucky and that they would be able to get a small truckload of DRB shares at 33 bids lower.

How?

Oh yeah... some trick questions.

DRB has a lot of 'warrants' issued.

Do you know which warrant would be severely impacted by this SUDDEN DRASTIC change in price?

Do you know the impact?

Who would turn out to the big loser with this sudden meltdown?

And who would be the big winner? Yeah, guess who came for dinner.

--------------------------

ps: Personally, from my flawed point of view, I reckon Trading At Close is the utterly most stupidest thing ever implemented. It put the stock market players at risk. Example? This DRB case yesterday says it all.

Comeon... Bursa.... stop making yourself the laughing stock. Enough is enough. Companies now list and delist anyhow they want. Delist it at a cheap valuation and relist it based on a super rich valuation. Who benefits?

I know.. you, Bursa, is a listed entity. You need to make money.

But hey.... think about it.... at whose expense?

And have you heard that good solid business is built on strong foundations? Have you not heard of this saying before?

Look at what's happening in front of you.

Are you seriously impressed with what's happening?

Comeon... protect the minority shareholders. And dude, the minority shareholders of any business, they are also your business partner.

Treat them right, and you will prosper.

Is this too difficult to comprehend?

The stock is having a fantastic run. Perhaps fantastic is an understatement. :=)

And guess what?

The local press decides to jump on the bandwagon to spice up the stock.

Err... sometimes don't you wonder about our press?

Yeah.. what's their objective?

To spice up the stock market? To add fuel to the stock? Yeah, 'kar yau' babe!

Let's send the stock to the up and beyond. :=)

Yeah, babe. I buy the local business newspaper because I want to find out which stock will be stir fried ala Paul style babe!

You be the judge. On Business Times:

• Syed Mokhtar mulls DRB-HICOM buyout
  
  By Francis Fernandez Published: 2010/12/09
  
  Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM Bhd (1619) private, people familiar with the plan said yesterday.
  
  It is further believed that the tycoon is being advised by Maybank Investment Bank Bhd on the plan which could cost him close to RM2 billion.
  
  Sources said the offer will be comparable to DRB-HICOM's net tangible asset (NTA) value. As at end of September this year, DRB's NTA stood at RM2.50.
  
  There has been speculation that Syed Mokhtar could offer anywhere between RM2.20 and RM2.70 for the DRB-HICOM shares he does not own.
  
  As at July 21 this year, Syed Mokhtar holds a controlling 55.92 per cent of DRB-HICOM, via privately held Etika Strategi Sdn Bhd.
  
  "The plan is being considered, but a firm decision has yet to be made," said the source. DRB-HICOM's group managing director Datuk Mohd Khamil Jamil declined to comment.
  
  DRB-HICOM's stock closed 11 per cent higher at RM1.70 yesterday, giving the group a market value of RM3.3 billion. It was also its highest close in 52 weeks.
  
  The stock has gained 68 per cent so far this year, much better than the broader market's 19 per cent gain in the same period.
  
  Mohd Khamil has been instrumental in changing DRB-HICOM's fortunes over the past couple of years. His cost-cutting measures have kept the conglomerate keep a keen focus on its bottom line. The group nearly doubled its revenue over the past five years to RM6.31 billion in 2010 from RM3.52 billion in 2006.
  
  After suffering a pre-tax loss of RM196.74 million in 2006, Mohd Khamil, a close confidant of Syed Mokhtar, has steadied the ship, helping the group post four years of healthy profits.
  
  In the financial year ended March 31 2010, DRB-HICOM posted a pre-tax profit of RM657.89 million.
  
  For the six months ended September 30 in the current financial year, its pre-tax profit stood at RM409.64 million, more than two times its pre-tax profit of RM163.65 million in the same period a year ago.
  
  DRB-HICOM assembles foreign marques like Mercedes Benz, Honda and Suzuki but it also has steady income from its Islamic bank, insurance and power plant maintenance business.
  It is also building up its property business in the Klang Valley and Johor.
  
  As for its motor vehicle business, DRB-HICOM aims to sign a definitive agreement with Volkswagen AG (VW) this month.
  
  VW had in August signed a memorandum of understanding with DRB-HICOM to produce VW cars from 2012 at the group's plant in Pekan, Pahang.
  
  Eventually, the deal may include the export of VW cars to Asean countries, among other things.
  
  Read more: Syed Mokhtar mulls DRB-HICOM buyout http://www.btimes.com.my/Current_News/BTIMES/articles/darbo8/Article/#ixzz17ZVnhODh