Regarding The Plunge Of Axis!!

Posted on Mootaktrade: The Plunge Of Axis

The plunge was incredible.

This stock was trading around 2.00 on 11th July 2008.

It closed yesterday at 0.35!

And what's most worrying is the following announcement on Bursa website. AXIS INCORPORATION BERHAD (“Axis” or the “Company”) - Submission of the Audited Financial Statements for the financial year ended 31 March 2008 (hereinafter referred to as “AFS”)

• The Board of Directors of Axis (“Board”) wishes to announce that at the Board of Directors’ meeting held on 30 July 2008 at 6.40 p.m., the Board has unanimously resolved that the Company would not be able to submit its AFS by the deadline on 31 July 2008 as a result of material unresolved issues raised by our external auditors, Messrs Horwath during the Audit Committee meeting held at 3.35 p.m. on 30 July 2008. The Management of Axis requires time to resolve these issues.
  
  The Audit Committee has proposed and the Board has approved the need to appoint an independent firm of auditors to carry out a special audit immediately to address these issues.
  
  The Company will make necessary announcements upon the outcome of the special audit.
  
  This announcement is dated 30 July 2008.

Accounting problems??????

And what's even more worrying was their answer to Bursa regarding the plunge of the stock. AXIS INCORPORATION BERHAD (“the Company”) - Unusual Market Activity

• We refer to Bursa Malaysia Securities Berhad (“Bursa Securities”) letter dated 30 July 2008 in relation to the unusual market activity of the Company’s shares.
  
  Pursuant to Paragraph 9.11 of the Listing Requirements of Bursa Securities, the Board of Directors of the Company wishes to announce that to the best of their knowledge, they are not aware of any of the following that may have contributed to the unusual market activity:
  
  1) Any material corporate development relating to the Group’s business and affairs not previously announced;
  
  2) Any rumours or report concerning the business and affairs of the Group; and
  
  2) Any other reasons to account for the unusual market activity.
  
  The Company will make the necessary announcement to Bursa Securities of any material information should it falls under the Listing Requirements of Bursa Securities in particular Paragraph 9.03 on disclosure of material information.
  
  This announcement is dated 30 July 2008.

How can they be not aware????????

Here is the link to their most recent quarterly earnings report: Quarterly rpt on consolidated results for the financial period ended 31/3/2008

Check out the rather godzilla sized trade receivables!

Incredible!