Wednesday, January 13, 2010

Browsing The Papers - Siti, Bridget & AFG



Had an early lunch, and got no choice but to read some mainstream media papers, mind censor system on. I read that in the Kosmo publication, Siti Nurhaliza received a RM40,000 Louis Vuitton bag for her recent 31st birthday from her hubby. It was also reported that last year he gave her a RM200,000 Richard Mille wristwatch. ... and the year before that a RM800,000 Mercedes.

Giiirrrlll ... you don't have to be an economist or chartist to draw that trend line, the gifts' monetary value is dropping faster than the share price of Transmile during their fraud case.

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The AFG case has been hogging the headlines. I haven't said much so far. So here goes, in my view, the board has acted too slow. Information was released in dribs and drabs, and when the markets and analysts say that its still not enough, they come out and say that it does not involve the bank's core business or client transactions, does not affect the bank's balance sheet or profitability, does not require provisioning, and no corruption case from MACC investigations. What is this... what game are we playing ... its like knocking on someone's door asking "Guess Whoooo??" Is it A... NO, is it B... NO ... but I will still not open the door... guess some more la...

Bank Negara is right to force the issue and ask the bank to come up with answers. When you have uncertainty surrounding the bank, act quickly and decisively, you cannot and should not hide behind the guise of "wanting to be thorough". Make the decisions, deal with it, you will never fully know everything with respect with the issue. Prolonged uncertainty will make investors uncertain and guess, it works against your long term shareholders who are unnecessarily penalised by the whack down in share price.

I am just guessing here, could it be that its because the board is toothless??? Just guessing here, no harm in guessing right, is it because the almighty owner is Temasek in Singapore and that certain decisions have to be vetted there... don't know la, but its not a crime to guess right... when you offer no clarity, everybody can only guess. Wake up board of directors. Even Bridget Lai said " The board has its role to play but its approach and communication should have been faster. The tide of rumours could have been stemmed".

I mean seriously, its refurbishment contracts, how much can it be, we are not talking about government type RM500 hammers are we? How much can you lose? Already some RM300m has been whacked off the market cap. You already said the refurbishment contract was RM50m odd, even if there was deception and over-billing, you certainly won't lose RM20m tops. Why not release all of what you know now. You can still do your thorough audit process in finding the responsible people involved AFTER telling the markets everything. At least we all will know you still have a CEO.

Like the report card would say: Could do better... so much better...


p/s photo: Son Dam Bi

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