everything: LCL Questionable Issues

The big thing today is that LCL has defaulted on RM72m loans and I made the following posting LCL Stock Gets Hit On Payment Default!

Since it was a slow day (again), I sift through some recent postings and certain issues stood out.

In the posting, LCL: New trouble brewing?

The last two paragraphs highlighted:

This month, Low sold down his shares in several transactions to about 18.8% from 30.8% previously, while in October, Tan Sri Abdul Halim Ali and Mohd Akib Abd Rashid disposed of their entire stakes in the open market. A bank-backed research house said the selldown “will deal another blow to investor confidence,” although the collapse of Dubai’s property market in the fourth quarter of last year had hit almost all multinationals and sub-contractors.
LCL’s share price has remained in the doldrum due to the weak sentiment. Yesterday, it closed 5.5 sen lower at 57 sen. Low was overseas and could not be reached for comments.

Looking at it NOW, it stinks doesn't it?

As usual the major shareholders HAD ALREADY disposed huge chunks of their shares.

Here are some of the announcements posted on Bursa website: Changes in Director's Interest (S135) - DATO' LOW CHIN MENG

17/11/2009 Changes in Director's Interest (S135) - DATO' LOW CHIN MENG - disposed
1,078,600 shares at 0.570

13/11/2009 Changes in Director's Interest (S135) - DATO' LOW CHIN MENG - disposed
7,380,000 at 0.630

And there are several other disposal transactions.

LCL now is 0.215!!!!

Wasn't it nice that the disposals were made at a significantly higher prices??!!!!

The other issue was the posting More Disposal Of Assets Seen In LCL

Makes me wonder about the following disposal...

LCL CORPORATION BHD has entered into a management buy-out agreement (MBO) with sofa maker Secret Sofa Sdn Bhd to dispose of the entire businesses and management of its unit LCL Cushion Sdn Bhd (LCLC) to the latter for RM1.14 million.

LCL said its board had today entered into the MBO which would see the disposal of LCL's 80% stake in LCLC to Secret Sofa. Subsequently, Secret Sofa will take over the operations and management of LCLC and its unit LCL Sofa Creations Sdn Bhd (LCLS)....

This is a MBO agreement.

Now I wonder about LCL Cushion MBO deal.

What is the significance of LCL Cushion?

How profitable is LCL Cushion business?

And I wonder who is in the management of Secret Sofa? Any relations?

Here are some snippets from CIMB research today.

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