LIONIND (4235) - TOP 3 URGENT REASONS WHY YOU MUST SELL LIONIND FAST AND GET OUT, Calvin Tan Research




Hi guys,
The more I look at it the more Urgent I think all who holds LionInd should sell and get out quick
Here are my Top 3 Reasons for Selling

1) PH GOVT CHANGE OF EXPANSIONARY TO AUSTERITY DUE TO RM1 TRILLIONS DEBT BOMB

Any Change of Govt Directives Will Change The Economic Landscape soon
Since GOVT RELATED PROJECTS ARE INTO HEAVY DUTY HIGHWAY INFRAR Any Cut in Job Awards Will Lead to Dwindling Demand for Long Steel.
This was what happened to Iskandar Property Stocks when Malaysia Govt put housing restrictions for Foreign Purchase of Houses in Johore. starting from year 2014
See

KSL HOLDINGS BERHAD [S] (5038)


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UEM SUNRISE BERHAD [S] (5148)


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CRESCENDO CORPORATION BERHAD [S] (6718)


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COUNTRY VIEW BERHAD [S] (5049)


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PLENITUDE BERHAD (5075)


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AS YOU CAN CLEARLY SEE FROM ALL THE ABOVE EXAMPLES WITHOUT FAIL ALL WENT UP IN TANTEM AND AFTER YEAR 2014 ALL ALSO GONE DOWN TOGETHER AS A GROUP. NONE CAN ESCAPE.
ALL BECAUSE BN GOVT CHANGED THE POLICY OF SINGAPOREANS/FOREIGNERS CAN ONLY BUY HOUSES OVER RM1 MILLIONS THRESHOLD.

AND NOW THIS PH GOVT HAS CANCELLED HIGH INFRAR PROJECTS IN AUSTERITY DRIVE WILL SURELY IMPACT ALL LONG STEEL STOCKS.
AS ECER WAS CANCELLED GAMUDA & A FEW OTHER CONTRACTORS STOPPED ORDERING LONG STEEL ON ITS TRACKS
EXPECT ANNJOO, SSTEEL, MASTEEL, LIONIND & PRESTAR TO FALL IN ORDERS FOR NEXT FEW QUARTERS & DRAGGING INTO MAYBE NEXT 10 YEARS. REAL ESTATE & LONG STEEL STOCKS ARE BOTH CYCLICALS

2) MANY LONG STEEL STOCKISTS STILL HAVEN'T BEEN PAID THE REFUNDS OF GST. SOME IN LIMBO AND MIGHT EVEN GO OUT OF BUSINESS. AND DEBTS ARE PILING UP IN DEFAULTS

Misif: Delays in GST refunds hurting steel industry

PETALING JAYA: The Malaysian Iron and Steel Industry Federation (Misif), which has some RM85 million worth of delayed goods and services tax (GST) refunds, views the delays in the repayment as a bane as it could impact jeopardise business operations and disrupt cash flows.
A total of 32 steel firms were affected by the delays and the aforesaid amount, and has been backlogged by several months, according to a Misif survey.
Despite “emphatising” with the government’s ordeal over the missing billions meant for GST refunds, it urged the government to reconsider and channel back the GST refunds to members as soon as possible without delay after the government announced that the input tax credit will be returned beginning next year.
Misif said the delay will cause tremendous hardship and uncertainties to businesses especially with the steel industry already being overwhelmed with a barrage of cost increases this year on account of the double whammy hike in energy tariffs (natural gas and electricity) which took effect on July 1, the implementation of the Employment Insurance Scheme (Jan 1) and numerous pending uncertainties relating to minimum wage and rehiring of foreign workers, as well as prevailing stringent credit access by financial institutions on the steel industry.
“The delay is untimely and continues to be a bane for exporters. It will exacerbate the existing cash flow situation, and the loss in business opportunities arising from the on-going implementation of the duty drawback mechanism for the importation of steel raw materials to produce finished goods for export purposes. All these have impaired the competitiveness and sustainability of the domestic iron and steel industry. “.

THE ENTIRE SUPPLY CHAIN HAS GONE INTO A LOG JAM AND SOME CONTRACTORS EVEN GOT THEIR CONSTRUCTION EQUIPMENT LIKE JCB REPOSSESSED BY BANKS FOR NOT PAYING LOANS ON TIME.

3) AS LIONIND IS GOING TO BUY MEGASTEEL IN THIS MOST UNSETTLING TIME THERE MIGHT BE A CASH CALL LIKE SAPNRG.
WHY?
ANSWER:
LIONIND GOT RM200 MILLIONS IN DEFICIT AND ANOTHER RM650 MILLIONS NEEDED TO ACQUIRE MEGASTEEL. SO THE SHORTFALL IS RM850 MILLIONS!!!
THIS MIGHT REQUIRE LIONIND TO ISSUE RIGHTS AT 50 SEN TO 70 SEN JUST LIKE SAPNRG GIVING OUT RI AT 30 SEN TO RAISE CAPITAL. SAPNRG SHARE PRICE WENT LIMIT DOWN. WILL LIONIND FOLLOW AS WELL?

SO THE VERDICT IS:
BETTER SELL OFF LIONIND WHILE THE SELLING STILL GOOD ABOVE RM1.00

BEST REGARDS,

Calvin Tan Research
Singapore

STOP PRESS!!  I almost forgot Keck Seng who still got some lands in Tmn Daya

KECK SENG (MALAYSIA) BERHAD (3476)


KECK SENG (M) BHD (3476) Chart
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So there is really no escape!
All collapse like Tent Pins!!!



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