Southern Bank, MOL Access Portal and TransMile

Posted on Star Biz. PwC finds SBB net assets overstated by RM160m

• PwC confirmed that there was inappropriate accounting treatment of certain transactions. That included inappropriately valuing certain derivative financial instruments, not writing down in full the collateral value and wrongly writing back specific provisions made on certain foreclosed properties and not expensing certain costs.
  
  The financial effect of the overstatement in the 2005 accounts of about RM160mil, before tax effects, was about 2.4% of the purchase price of RM6.7bil paid by BCHB for SBB.
  
  “PwC has confirmed that these inappropriate accounting treatments have all been corrected as at June 30, 2006 in the books of BCHB and that no further amendments or corrections are required,” BCHB said.
  
  ( Stocktube comments on it! Southern Bank Overstated But Its Ok With Commerze )

Sources rule again on StarBizweek! Plans to take MOL AccessPortal private

• If market speculation is correct, there may soon be another company that may join the list; this time it may involve Mesdaq-listed MOL AccessPortal Bhd.
  
  According to sources, there is a plan that is currently being considered to take the company private.

Sigh! The weekend speculative news strikes again!

• Last week the company’s stock (MOLAccess) hit its historical high of 60 sen and the rise could have been fuelled by speculation that it may be taken private.
  
  Notably however, year to date, the share price has risen two fold.

MOLAcess at 56 sen is valued at a market capital of 51.682 million!

Cash balances of 1.128 million and has total loans of 2.108 million.

• However its financials have been stretched as well. For the nine months ended March this year, MOL AccessPortal posted a net profit of RM562,000 from RM17.3mil in revenue.

MOLAcess to be taken private? Yes, please do!

Transmile. See headline news Hard landing and Credibility quagmire.

Sal wrote the following blog, Transmile, Nasioncom: Good Or Bad For KLSE

• The handling of Transmile could have been better by the SC and the Bursa, but still not too bad. The allowed trading period for Transmile during days when there is no concrete information was not good at all. Billions were wagered, won and lost based on hearsay, rumours and pure speculation. However, if the big guys were to stop trading for a very long time, some might question the validity of a long suspension - investors need to move in and out. Its a difficult balance but I'd rather the Bursa and SC suspend the stock, even for 2 or 3 weeks pending the results of the new audit, that would have been better, because we are talking about a material matter.

Some decent comments were posted in that posting. ( Click here ) Or you can follow this forum posting ( http://sahamas.net/forum10/4147.html )