Same old, same old start to the New Year!!!

1. The stock: RUBHD

2. The article:

Ranhill Utilities to be privatised?
Water treatment company is Ranhill Bhd’s jewel in the crown. Over the past month or so, Ranhill Utilities Bhd (RUB) has been among the more actively traded counters on Bursa Malaysia, and its stock, in line with the interest, has surged, to say the least.

• Saturday December 30, 2006
  
  Ranhill Utilities to be privatised?
  
  By JOSE BARROCK
  
  OVER the past month or so, Ranhill Utilities Bhd (RUB) has been among the more actively traded counters on Bursa Malaysia, and its stock, in line with the interest, has surged, to say the least.
  
  From early last month, RUB’s share price has gained as much as 117%, and the stock ended trading last Thursday at RM2.87, its 52-week high, with about 1.7 million shares changing hands.
  
  Market talk has it that RUB may soon be the subject of a privatisation exercise, with its 70% parent, Ranhill Bhd, looking at buying the shares it does not already own in the water treatment service provider.
  
  It is understood that Ranhill plans to pay between RM3.30 and RM3.50 a share for the remaining equity in RUB. Such an exercise will cost Ranhill between RM292mil and RM309mil. Based on last Thursday's close, a 30% stake in RUB had a market value of about RM254mil.

Hm.... no more sources?? LOL! Them wordings have changed but still same old, same old!! It is understood, market talk etc etc all boils down to nothing but NON factual reporting.

Err.. some would call them rumour mongering, yes?

3. The stock.


Article was published on 30th Dec 2006.

On the next trading day, the stock rose a nice 10 sen or 3.4%.

4. Today, RUBH answered the querries posed to them from the SC.

Article Entitled : Ranhill Utilities to be privatised?
We refer to the Bursa Malaysia Securities Berhad ("Bursa")'s letter dated 3 January 2007 querying on the article that appeared in The Star, Bizweek section, page BW 3 on Saturday, 30 December 2006, particularly the caption below:

"...RUB may soon be the subject of a privatisation exercise….Ranhill Bhd....buying the shares it does not already own…"

"…Ranhill plans to pay between RM3.30 and RM3.50 a share for the remaining equity in RUB."

The Company wishes to inform that it has not made those statements and wish to clarify that it has not appointed RHB Sakura Merchant Bankers Bhd to assist or advise the Company on such proposals.

Article Entitled : Ranhill Utilities to be privatised?
We refer to the Bursa Malaysia Securities Berhad ("Bursa")'s query letter dated 3 January 2007 in relation to the article appearing in The Star, Bizweek section, page BW 3 on Saturday, 30 December 2006, particularly the following captioned:

"...RUB may soon be the subject of a privatisation exercise….Ranhill Bhd....buying the shares it does not already own…"

"…Ranhill plans to pay between RM3.30 and RM3.50 a share for the remaining equity in RUB."

We wish to advise that the Company is not aware nor has any knowledge of the subject matter referred to therein.

*********************************************
So how?

Newsmedia write article on a stock, the stock goes up and then the company denies the story.
Ah, of course one would argue that since the stock only went up a measyly 10 sen or 3.4%, some might argue where is the profit of cooking up the story?

Ah, but consider this...

Story was PUBLISHED on a Saturday, 30th December 2006.

This means that it's possible that the story was 'planned' much earlier. (Ah, I am speculating here. I could be wrong but what if I am right?)

Have a look at the trading data if I expand things a little bit back... have a look.


Look at how much the stock was trading on 20th December, 7 trading days earlier. RUBHD's opening price was 2.49. And just on the 27th December, RUBHD opened the trading at only 2.69.

Look at it today. Closed at 3.00.

See the possibility that exists for massive profits to be made by publishing such stories?

Oh, of course I could be wrong.

And last but not least, the process of SC doing nothing but search the news for such articles and then querrying the companies, isn't it a total waste of time and money of the SC?

And then, the company involved, being querried by the SC, again, yet another waste of time and money amd most of all comapny productivity to answer to such querry.

Oh, I wonder why, there is nothing in regards to the newsmedia for publishing such articles?

Shouldn't the newsmedia and their editors be more responsible in ensuring that there is CREDIBILITY in the articles published in their papers?

How Brown Cow?