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Thread: FELDA: Harapkan Pagar, Pagar Makan Padi

   
   
       
  1. #61
    Join Date
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    13,385
    BN’s only strategy in economics


    Mohd Ariff Sabri Aziz
    | November 18, 2012

    The Felda Global Venture issue and democracy under Umno have many similarities, says a former Umno Pahang assemblyman.

    What has the Felda Global Venture (FGV) issue got to do with the state of democracy in the country under Umno?


    The FGV listing simply illustrates that special interest groups in this country determine our democracy instead of the wishes of the majority.


    The listing of FGV has more to do with the agenda of the moneyed class than the agenda of the no-money settler class.


    Settlers and employees got 200.6 million of the 2188.9 million shares to be sold.


    The people representing the majority and overriding interest are the settlers and the employees. There are 112,635 settlers and 3835 employees.


    They represent directly the interest of Felda people. They are the majority on whose backs and on whose name, this listing was supposed to be done for and benefits meant.


    My questions to the Felda people is this: Why get only 200.6 million out of the 2.188 billion shares offered? Why own the same from the 3.6482 billion of the enlarged share capital?


    That’s only 5.5% of the interest in Felda.


    What Prime Minister Najib Tun Razak and the government are doing to you is just cosmetics.


    Because you are 116,470 strong, you are bribed with RM15,000, RM380 duit raya, 810 shares worth RM3685 at listing and your sons’ and daughters’ PTPTN are being paid by the government using money that belongs to YOU.


    Najib will do anything to keep you corralled and addicted to the cocaine of handouts.


    Who are the “people”?


    The same is happening to the state of democracy under Umno.


    This country’s future is being determined by special interest groups who are self-selected and thrive on a single chosen issue.


    When the FGV shares rose up to near RM6 per unit, everyone said that was a testament of the confidence people have with FGV.


    But who are these “people” exactly?


    The “people” – a nebulous and hazy term which could be infused with whatever meaning one wishes – refers to the various state governments that were asked to buy the shares and the various government-linked companies (GLCs) that Najib directed to buy FGV’s stocks.


    More important, these “people” are really the moneyed and special interest groups.


    And of course, Najib alone represents the “people” and naturally he wasn’t shy to pat his own back. He must now be an accomplished contortionist.


    Now that the share price has gone down tremendously, everyone who previously jumped up and down, are saying that it is a normal course in share trading.


    Going down is part of the normal course, but going up is taken to mean much more?


    Our take is this – going by the logic of the majority of us with only weak school certificates – the reduction in price, must be testament to lack of confidence.


    FGV’s poor record


    If the trending is more downwards than upwards, then lack of confidence is the stronger force.


    We are not confident FGV will take settlers new heights nor are we confident Najib, Umno and BN can take our country to new heights.


    Najib’s only strategy in economics is to give out money, here, there and everywhere.


    Right from the beginning, the listing of FGVH and the choice of the vehicle for listing of Felda’s business interest was questionable.


    For a start, there weren’t any settlers’ representative on its board.


    FGV does business mostly overseas. Its business record was far from good or sufficiently good enough to inspire confidence that it can bring Felda to new heights.


    It incurred continuous losses in its business most of the time and only made spectacular rebound on the profits nearing the listing date.


    Most of its profits came from the portion it owns in Felda Holdings which is anchored in its brick and mortar business- planting of palm oil trees and selling CPO to the world.


    It wasn’t doing anything bordering on rocket science that seems to be preferred by FGV.


    The writer is a former Umno state assemblyman but has now joined DAP. He is a FMT columnist.
    py

  2. #62
    Join Date
    Oct 2008
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    Friday, 11 January 2013 12:07

    EPF, KWAP forced to buy Felda shares? Don't try to block the truth - Wong Chen slams Muhyiddin

    Written by Wong Choon Mei, Malaysia Chronicle
    )



    UPDATED PKR investment bureau chief Wong Chen ticked off Deputy Prime Minister Muhyiddin Yassin for trying to gag public discussion on the use of national pension funds to buy plunging Felda shares, and threatening to have the Securities Commission and Malaysian stock exchange take action against Opposition Leader Anwar Ibrahim for raising the matter.

    "We are not cooking up data. This is data reported by analysts and this is what we are bringing to the public's attention. The question remains, despite analysts pointing out that the shares are no longer on the uptrend, why did EPF and KWAP continue to buy and in such huge amounts. We are asking EPF to explain these purchases which are against market movement to contributors who are concerned and have the right to know," Wong Chen told a press conference on Friday.

    "Did EPF and KWAP receive any implicit or explicit request from the government or any politician to buy Felda shares? Is there any breach of trust or negligence - explain to the public then. Almost all of us have a stake in EPF, KWAP. Is there a correlation with all the big guys (BN cronies) selling their shares and EPF buying from them? These are all questions that must be brought to the people's notice and duly answered."

    Protecting the cronies

    Wong Chen was responding to recent comments made by Muhyddin that Anwar was 'envious' of the Felda listing - the world's largest IPO in 2012 - and wanted to politicise the issue so that the share price would continue to fall.

    "I'm not sure whether the Securities Commission or Bursa Malaysia can take action against Anwar for making a statement aimed to incite," Bernama had reported Muhyiddin as saying.

    Last week, Anwar had warned Felda shares would have been priced lower if not for the intervention of several government institutions such as the EPF. He said it was clear the entire listing - which necessitated settlers giving up all their land totalling some 800,000 acres - was aimed to benefit BN cronies.

    "The only ones who benefit are cronies, including FGV’s chairman and board of directors who got the shares for nothing and sold them early for profit. Then the price drops,” said Anwar.

    Buy recommendations disappearing fast

    At Friday's press conference, Wong Chen showed slides from a Bloomberg screen page that compiled the views of market analysts. According to Wong, the overall views and recommendations of the analysts had turned negative from as early as August 9 last year, with "buy recommendations disappearing fast".

    "From that date to 4th January 2013, despite the overall negative views on the stock and it falling share price, EPF continued to buy.

    It added another 46 million shares to its portfolio. For the same period KWAP added 10 million shares. The buying behavior of EPF and KWAP are extremely contrarian. This seems unbecoming of a pension fund," said Wong.

    The buying activity resumed in June till early this month and the overall forays in the open market from 29th June 2012 to 4th January 2013, resulted in EPF spending an estimated RM455mil and KWAP RM305mil, he added. At the current market prce hovering aound RM4.60, this translates into a paper loss of RM40 million for EPF and RM35 mil for KWAP.

    "PKR believes that EPF holders and the civil servants have a right to know whether these buys, a significant portion of which is against analyst recommendations and market views, are politically motivated," said Wong.

    EPF is the Employees provident Fund to which most working Malaysians contribute, while KWAP or Kumpulan Wang Persaraan manages the contributions from the staff of the Federal Government, Statutory Bodies, Local Authorities and other Agencies.

    Mopping up shares sold down by BN cronies?

    Wong Chen did not discount the possibility that the EPF and KWAP may be mopping up shares sold off by Umno cronies, who were awarded huge chunks of stock even larger than those reserved for the Felda settlers during the listing exercise last year.

    "In the IPO, there was controversy over who are these Miti-approved investors who were given 3 times the number of shares alloted to the settlers. This is a mystery until now but to qualify as a Miti investor you need to have at least RM3mil in net worth. In other words, these are the rich guys. Why are the rich guys given so much more shares than the Felda settlers? Are they the ones selling off now and EPF, KWAP asked to pick up from them? This is the question going around town but we won't know until information is made public," Wong Chen told Malaysia Chronicle at the sidelines of the press conference, adding that privacy laws may restrict the release of such data.

    It is believed that the Miti-approved investors hold around 300 to 600 million ishares. Miti stands for the Ministry of International Trade and Industry.

    Pension money at stake, losses on a worsening trend

    Wong Chen further warned that the "paper losses" held by EPF and KWAP were on the deteriorating trend.

    "The current average analysts target price for FGV is RM4.19. If the share price falls to that level, EPF and KWAP would have lost RM146mil and RM129 mil. If the Felda share price falls to RM3.53 which is the second lowest among the 12 most recent recommendations on the stock (furnished by Alliance Research), EPF and KWAP would have paper loss of about RM327 mil and RM295 mil," said Wong.

    Malaysia Chronicle

    Related Stories:

    NOT POSSIBLE TO DEFEND: Felda share value not supported by strong fundamentals

    Anwar should not politicise business matters - DPM

    Anwar: FGV share price inflated, EPF funds used

    EPF, KWAP ordered to buy falling Felda shares? Don't try to gag public discussion - Wong Chen slams Muhyiddin
    QUESTIONABLE EPF & KWAP INVESTMENTS IN FGV

    EPF and KWAP are state controlled pension funds, which ultimately belong to the contributors and the civil servants. The key purpose of these funds is to help depositors prepare for their retirement. As such the government and the fund managers are under a much higher standard of duty and care in their investment approach.

    In the case of their investments in Felda Global Venture Holding Berhad (“FGV”) shares, KEADILAN is of the view that both EPF and KWAP have a lot of explaining to do. As early as Aug 9th 2012, overall analyst views and recommendations on the stock had turned from positive to negative, with buy recommendations disappearing fast. From that date to 4th January 2013, despite the overall negative views on the stock and it falling share price, EPF continued to buy. It added another 46 million shares to its portfolio. For the same period KWAP added 10 million shares. The buying behavior of EPF and KWAP are extremely contrarian. This seems unbecoming of a pension fund.

    In addition, their overall forays in the open market from 29th June 2012 to 4th January 2013, spending an estimated RM455m (EPF) and RM305m (KWAP) have resulted in an estimated paper loss of RM40m for EPF and RM35m for KWAP.

    KEADILAN believes that EPF holders and the civil servants have a right to know whether these buys, a significant portion of which is against analyst recommendations and market views, are politically motivated.

    KEADILAN therefore demands EPF and KWAP to answer this question: did you ever receive any implicit or explicit instructions from the government or any politicians to buy and support the share price of FGV.

    Here is the current score card:

    EPF

    On listing of FGV, EPF had 185 million allotted shares.

    From 29th June 2012 to 4th January 2013, EPF increased its FGV shares by 90 million, spending an estimated RM455 million.

    This is a big increase of 46% from its initial holding.

    These 90 million shares were acquired at an estimated weighted average price of RM5.05.

    At the current price of RM4.60, the six months of trading has resulted in a paper loss of approximately RM40 million.

    KWAP

    On listing of FGV, KWAP had 194 million allotted shares.

    From 29th June 2012 to 4th January 2013, KWAP increased its FGV shares by 59 million, spending an estimated RM305 million.

    This is a substantial increase of 35% from its initial holding.

    These 59 million shares were acquired at an estimated weighted average price of RM5.19.

    At the current price of RM4.60, the six months of trading has resulted in a paper loss of approximately RM35 million.

    The immediate future does not look good:

    Base case scenario?

    Current average analysts target price for FGV is RM4.19.

    If it continues to drop down to that level, EPF and KWAP would have paper losses of about RM146m and RM129m respectively.
    Worst case scenario?

    If the price drops to the Alliance Research target of RM3.53 (the second lowest among the 12 most recent recommendations on the stock), EPF and KWAP would have paper loss of about RM327m and RM295m.

    Wong Chen

    PKR Investment & Trade Bureau

    11th January 2013
    py

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