FGV (5222) - FGV's delisting?
So, when you do not do well and feel that the market is not fair towards your value, what do you do? Delist. In the case of FGV, it is not that simple. It is a lot of small shareholders and some big shareholders losing money - including EPF (which is our money) I presume.
I had an old article back in 2012 where I questioned the rationale of FGV being aggressive. At that point of time, I obviously did not know it is going to be so bad even. Expected EPF to even support its shares and it happened for a period.
I am glad that EPF is the first to pull back and see what happened to its shares. Hence, the drop in FGV shares is both poor management as well as lack of support from what is supposed to be their saviour. I would not put it that bad-ly but if I want, it (the script) was supposed to be some big fund to support a listed company hoping it should sustain the share price while the company will pick itself into its supposed value. It did not happen according to script. Hey! Happened well with IHH isn't it? (Can you see that it is just a joke.)
The party that caved in actually is not EPF but greed probably from a group of managers who think that they can go and conquer the world. They have not managed to and to the extent, could not even do well in its own backyard.
Now KWAP is fearing of a delisting as if it is to be bought back at say RM3.00, they probably would lose substantial - which is probably what the article below is all about.
The current situation for FGV is when it has to do a lot of revamping over the poor management in the past few years. I remember it even went to acquire a Cambridge GRAPHENE company. Who really know what graphene is? Even if it is, would FGV be in the position to execute well on the technology?
See - to clear up mess is harder than to create them. What FGV should do is to go back to basics i.e. improving yield, market exposure, partnerships etc. etc.
The fact of the matter is that it is still a substantial size organization and has the assets to put itself back into position. Prices of palm oil is also getting friendlier towards its mission. (For those who particularly like export stocks, it is an export stock!)
And the major seller (EPF) is also out now but REALLY, the most important thing for FGV is to get back to work - not being creative in exercises such as listing and delisting.
FGV (5222) - FGV's delisting?
http://www.intellecpoint.com/2017/01/fgvs-delisting.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FIFWDU+%28SERIOUS+investing%29
