Well, at least now we know it is not a privatization offer!
The amounts reported seem small though - probably it is the lack of internal controls preventing this that seem worrying.
(18-01-2013, 08:02 AM)Musicwhiz Wrote: [ -> ]Well, at least now we know it is not a privatization offer!
The amounts reported seem small though - probably it is the lack of internal controls preventing this that seem worrying.
Nevertheless, credit to audit comm for doing their job.
Probably blessing in disguise We still have this stock to invest.
Now KMC is more visible to investor.
(14-01-2013, 11:16 AM)wozhaodaole Wrote: [ -> ] (14-01-2013, 09:55 AM)yeokiwi Wrote: [ -> ]There aren't many kind of transactions that require a trading halt(especially on dreaded Monday)
A placement is possible but Kingsmen does not need extra $$$.
A right issue is even more remote.
With S$46 million of cash at 3Q12, it is kind of unlikely that they need to raise $$$ to lease a new building.
Project win? I am not sure what kind of amount of project win will require a halt.($50million??)
M&A. Unlikely, unless they want to swallow up Pico but Pico is far too big. The rest in Singapore are not worth the effort.
Retirement?? I have to agree with dydx that this possiblity is likely to be the highest.
I suppose many of Kingsmen staffs are shareholders too and only a good price will appeal to all.
profit warning?
fraud?
top mgt under cpib investigation?
these are possibilities too. =)
haha. i can't believe it was fraud too. but impact is about 10% profit. still can survive. =)
Didnt really read and comprehend the entire announcement.
But i think the impact was that the earnings was UNDERSTATED in the affected years right? since the employees siphoned the money out and booked in extra expenses...
Hence, there is no weaker profits or earnings, in contray its better earnings if they managed to recover the money.
However, it kinda points to weak internal controls in the company?
Actually it is more like 20% if you factor in the stuff that was written off in 2010. Also for 'employee' to be able to enter into personal guarantees of such a sum and even authorise payments, he's got to be of a certain level in the company right? It's corruption at a rather high level, and it has been going on for years. Also no mention of disciplinary action or anything to prevent future reoccurrence...
Meanwhile in China, they straight out dismissed the employees despite the fraud being of a much lower amount. Haha, it pays to be well connected!
(18-01-2013, 08:06 AM)corydorus Wrote: [ -> ]Probably blessing in disguise We still have this stock to invest.
Now KMC is more visible to investor.
you actually think an announcement about fraud is better for the company rather than a general takeover offer? r u insane?
of course it is more visible. it's going to be splashed all over the newspaper.
(18-01-2013, 08:02 AM)Musicwhiz Wrote: [ -> ]Well, at least now we know it is not a privatization offer!
The amounts reported seem small though - probably it is the lack of internal controls preventing this that seem worrying.
It's timely reminder by WB about detecting cockcroaches. here there are 2......hmmmmmmm. also a huge wake up call when investing in small-mid-caps, the risk is much higher and we need to insist on the full margin of safety, no less.
Well.. Even big caps like banks have employee frauding in the past.
Somehow I always find subcontractor dodgy.
Heard a few subcon ran away with money
Actually frauds will happen once in a while... What is more worrying is will there be more of such announcements there are not released?