(18-01-2013, 10:34 AM)Share Investor Wrote: [ -> ]Drifting lower. Now down 9.5 cents.
Be greedy when other are fearful...not easy to practice. 
As an auditor myself, i feel that fraud should never be taken lightly especially if it may involve senior management. For this case, I do not dare to be greedy at this stage yet until further investigation result is out. We do not know if it is really a one-off event or is it a sign of something more pervasive.
I can accept companies missing earning estimates or having a bad financial quarters if its business model and value is still intact, but my tolerance for fraud related share price decline is very low unless the fraud is proven to be non-pervasive. As such, I think i am one of those who will take profit now and erred on the side of caution.
It is a pity that management did not provide some form of assurance in the announcement by stating that this is a one-off incident as far as they are aware. Unless they are not confident of making that claim.
(18-01-2013, 10:58 AM)Share Investor Wrote: [ -> ]It is a pity that management did not provide some form of assurance in the announcement by stating that this is a one-off incident as far as they are aware. Unless they are not confident of making that claim.
hmm...u still don't know why they did not provide the assurance?
Don't think this fraud involves senior management since the announcement specifically said they had no knowledge of the guarantor arrangements. Maybe it's a very senior manager... Which makes me wonder if it's someone I met during their AGM. Either way, there are no immediate disciplinary actions, and in a "family owned" company one can only wonder.
Anyway doubt there'll be significant financial impact for now short of some discounted share prices... Hehe
Just see next year's AR Board of Directors & Senior Management Team.
Any change in faces could offer a clue
(18-01-2013, 11:03 AM)wozhaodaole Wrote: [ -> ] (18-01-2013, 10:58 AM)Share Investor Wrote: [ -> ]It is a pity that management did not provide some form of assurance in the announcement by stating that this is a one-off incident as far as they are aware. Unless they are not confident of making that claim.
hmm...u still don't know why they did not provide the assurance?
Some share-buy back or management increasing stake will be good assurance.
I wonder if there will be another round of price drop when it is reported in the newspaper tomorrow.
(18-01-2013, 11:04 AM)piggo Wrote: [ -> ]Don't think this fraud involves senior management since the announcement specifically said they had no knowledge of the guarantor arrangements.
what is unsaid: just the guarantor arrangement.
If we focus on what is unsaid in the announcement, there are a lot of unanswered questions.
For a company which is heavily involved in projects (with many sub-contractors) and invested overseas, such fraudulent cases are not uncommon, but nonetheless very disappointing to know. It is very difficult to prevent such fraud, esp when employees collude with sub-contractors.
From the announcement, it appears that the KBJ case would have involved a senior manager, possibly with KE for a long time enough not to be reported to police. Normally, I would expect a police case in order to send out a strong signal to the rest of employees.
191.6m share outstanding... x down $0.09 = market cap down by SGD19million.
Loss of SGD1.5million only?
Shortist come in ... so value investors got chance mah...