Let's await at the demise or downhill run yesteryear London Biscuits. We may so travel able to encounter the diverse permutations involved in addition to announced. How investors should react in addition to so on.
2019 February, London Biscuits’ external auditors Nexia SSY had expressed a qualified thought on the group’s fiscal statements for the fiscal twelvemonth ended Sept 30, 2018 (FY18). It had raised concern on the group’s physical inventories held at Sept 30, 2018, which were stated inward the statements every bit RM26.89 meg at the grouping marking in addition to RM20.79 meg at the society level,
(LESSON: whatever variety of qualified opinion, i should sell first... our professional person accountants are loathed to qualify anything unless its actually necessary ... sell outset so exercise enquiry later, a lot of fourth dimension to purchase dorsum if y'all were wrong)
On July 8, London Biscuits slipped into PN17 condition after it defaulted on a RM9.8 meg inward loan payment to Bank of Nova Scotia Bhd,
(July 3), London Biscuits said that its executive manager Datuk Ranjeet Singh Sidhu in addition to its main fiscal officeholder Loo Seng Kit had voluntarily resigned. Both had taken on their roles only on June 17,
(LESSON: when overstep management or board members resign suddenly, about other large cerise flag... this i to a greater extent than so every bit these 2 were less than i calendar month into their jobs)
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| https://andropausesuccor.com/ |
(July 8), London Biscuits updated inward a fresh filing amongst Bursa Malaysia that it was instantly a PN17 society due to the payment default,
(LESSON: PN17 mostly volition yield a daze selldown, PN17 is non all that bad, y'all stimulate got to assess how bad are the books every bit whatever potential property injection or white knight to come upwards inward volition stimulate got to judged on its viability... London Biscuit amongst simply a cursory glance on numbers may require likewise much debt forgiveness in addition to uppercase reduction to operate for existing shareholders in addition to creditors)
(Aug-Oct) Meileelanusa S/B disposed 5.9%, every bit of October xv the society has only 7.35% from 13.8% inward July,
(Sept 24): Johor-based confectionery maker London Biscuits Bhd has been slapped amongst a lawsuit yesteryear State of Kuwait Finance House (Malaysia) Bhd (KFH) for RM5.06 meg inward outstanding debt,
(Oct 23), air current upwards petition in addition to court-appointed PWCoopers Advisory every bit interim liquidators,
(Nov 12), MembersOne Ventures Fund, a Sydney based fund, has acquired 11.35%,
So who would purchase now? Who are MembersOne Venture Fund? Only gear upwards inward 2017? Those who are cynical may say that the controlling shareholders, having sold at much higher levels, may stimulate got a reason to purchase instantly to all the same "control" hereafter firesale and/or white knight's
emergence. It is good known that most of the mechanism inward the society needs replacing or upgrading, therefore y'all may fifty-fifty write that property off altogether. SC needs to travel to a greater extent than vigilant hither looking at how volatile the changes stimulate got been to the society over the yesteryear half dozen months. Too many things stimulate got happened, likewise many questions stimulate got surfaced.
Any value left inward the company. The latest quarterly showed a Net Asset per portion seat of RM1.28. If y'all multiply yesteryear the release of shares 291m = RM372.5m. That is only slightly to a greater extent than than the loans beingness defaulted of RM285. Naturally cyberspace property value would stimulate got already taken into trouble organization human relationship the loans, therefore in that place should travel a lot of vultures buying! But wait, they lose virtually 30-35 sen each quarter inward cyberspace property value. Looking at that tendency alone, y'all would stimulate got avoided the stock half dozen months ago. Judging on the qualified thought in addition to swift resignations of novel management, i may suspect that the figures may non travel reliable at all.
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| https://andropausesuccor.com/ |
Hence it is prudent to ignore the cyberspace property value altogether, thus the only value left is the construct mention London Biscuits. People who purchase biscuits are unremarkably non portion investors.
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