SC In The Hot Seat
What a thankless task... you get rid of speculative bubble in Iris and its related counters, and now you have Sugar Bun. A few weeks back the share was just around RM1. So, as investors, what do you want SC to do? If they red flag the counter and designate it, people will scream that the SC is killing off market activity. If they don't, and Sugar Bun reaches RM5.00, the fallout would be much more catastrophic, and roll-on domino-effects could be horrendous.
Bottom line, SC is not there to please the public, but to save the public from themselves and maintain integrity in the market place. While a free capitalistic market would allow for full willing buyer, willing seller, stocks like Sugar Bun makes a mockery of the regulators and the investing public. Kill the stock already!
Following some good comments by "doraidd" (please read comments to this posting), I do agree that JA operates with more finesse and planning. But seriously, the so called news and contracts are still pretty full of shit. Let's look at some facts about Sugar Bun:
Pour Some Sugar On Me...
2005 - Revenue RM36.5m, Net Loss RM17m
2006 - Revenue RM24.3m, Net Loss RM20m
The main activities of SUGAR are investment holding, provision of administrative, management and marketing services and franchise operation. However, the Company has ceased its franchise operation in June 2005. The principal activities of its subsidiary companies are food processing, general trading and provision of catering services. SUGAR is mainly focused in the operation of a chain of fast food restaurants. The company''s fast food restaurants serve a range of food products. The range of product is under the brand names SugarBun, AppleBee''s, Caprila and Papa''s Kitchen. SUGAR started its first outlet in Kuching, Sarawak. Its chain of fast food restaurants has expanded to cover both East and West Malaysia. SUGAR is the first fast food operator to attain ISO 9002 certification in the fast food industry in Malaysia. SUGAR has about 63 outlets in Malaysia. The company source its chicken supplies mainly from the local suppliers, while source its beef and fish fillet from countries like New Zealand and Australia.
Paid Up: 90.1m shares
Good thing is NTA is about RM1 per share.
Sugar Bun Corp Bhd via its wholly owned subsidiary Borneo Oil and Gas Corp Sdn Bhd (Borneo O&G) has acquired Borneo Oil (Thailand) Ltd (BOT) for RM15,000 which would be used as a vehicle to venture into the oil, gas and energy industry.In a statement on Oct 27, Sugar Bun said Borneo O&G is an umbrella holding company set up by Sugar Bun as part of an internal reorganisation exercise to diversify into new businesses. BOT is a shelf company incorporated in Labuan with a paid-up capital of US$1 (RM3.65). The company plans to increase BOT¡¦s paid-up capital to US$2.5 million.
(firstly, its a shelf company, with a very nice oil and gas name. there is nothing in the company. one can go into the oil and gas with any company, but where is the expertise. coming a long way from broasted chickens man, cooking oil oil and gas... same what...)
The second bit of news is a RM300m Petronas contract. Firstly, where is the expertise. Secondly, even if true,and you can impute a 25% margin, that is only RM75m. The stock has risen from RM1.00 or a market cap of around RM100m to RM2.80 or RM280m. The extra RM180m in market cap is the froth and will get distributed at the expense of minority shareholders / general public. Who is to say even with the contract that it will be a recurring contract??? With all my ranting and raving, Sugar Bun will probably go much higher just to spite me.