Buy @ $0.73, $0.725, $0.72, $0.715, $0.705
A new stock to my portfolio. They were halted since Friday, after market closed. The share price was running up then. There were a lot of positive speculations in VB forum that it's finally their dream G.O. coming true. This AM, they dropped a bombshell in their SGX Annc when they announced their results of a fraud / dishonesty investigations. The total amount involved is ~$1.5M which will be set off in their P/L. No one was fired but the case is now in the hands of CAD.
Their biz is in Interiors for shops (eg. Hour Glass, Motor Cars showroom,…) + Exhibitions + Theme Parks. Two unrelated main shareholders controolinmg ~50%. Net cash (according to VB forummers, the plan is to acquire their own premises) and decent yield ~6%. Net Profit is quite flat for the past 4 years but EPS shows a bit of growth as they had been doing shares buy back. The talk in VB forum had been on a good possibility of G.O. as both the major shareholders cum founders are getting old and are keen to retire.
Looking at their SGX Annc, what's committed doesn't seem that serious, more of internal control weakness / lapses. It doesn't appear it'll damage their reputation / credibility. BUT, it's not in the hands of CAD and well… CAD is less flexible on what's right or wrong… Very likely, some of the employees will be charged in court after weeks or even months of investigations. In the meanttime, there'll likely be fears that this may just be the tip of the iceberg…
Anyway, take a risk to buy. Will look more in depth into their financials on Sunday if I have the time… Will have to find time…:D