Just How High Can You Fly Jetson?

Saw the following news clip on Star Business: K Jetson unusual market activity due to speculation

• Saturday November 14, 2009
  
  K Jetson unusual market activity due to speculation
  
  PETALING JAYA: Kumpulan Jetson Bhd’s unusual market activity could be linked to market talk that the Naza Group is close to securing a privatisation project.
  
  “The company is not aware of any reason for the unusual market activity but it could be due to speculation on the privatisation project by Matrade to Naza Group.
  
  “The market may have linked the Naza Group to Jetson by way of common shareholders,” Kumpulan Jetson said in a filing with Bursa Malaysia yesterday.
  
  It added that it had made due enquiry with its board as well as major shareholders and found there was no material corporate development not previously disclosed.
  
  The exchange had queried Kumpulan Jetson following strong trading activity in the stock in the past few days.
  
  The share price had surged 39% in the past one week but closed one sen lower at RM2.94 yesterday.

LOL!

This stock closed at rm2.94.

Speculations eh?

One really have to admire the company's straight forward answer. No twisting, no turning. Hey, it's pure market speculations. What's wrong?

And don't you just love the stock name? Jetson.

Eh? What's wrong with the name Jetson? Well, nothing. LOL! But local folks just love to play with names. Jetson could easily turn into son of Mr. Jet. And since jets do fly, surely one would say the son of the jet should also fly. LOL! (ps. if you stop your stare, i shall stop this kind of talk. :p2 )

Anyway, posted on 21st September 2009, What's Up Kumpulan Jetson?. Jetson last closed on that day 1.96. Jetson today is rm2.94. (Why some say they cannot make money in Bursa Malaysia ah?) (yeah, stop gawking! hehe)

Ain't life grand?

This used to be a 60 sen stock.

Hello... 60 sen stock.

Now it's a 2.94 stock!

Ooolala! Stop gawking wei! Already declared that it is market speculations.

ps: on 4th November, there was this newsclip.

• Jetson proposes private placement of 5.279m shares
  Written by Joseph Chin
  Tuesday, 03 November 2009 19:27
  
  KUALA LUMPUR: KUMPULAN JETSON BHD [] has proposed to undertake a private placement of 10% of its paid-up or 5.279 million shares.
  
  The company said on Tuesday, Nov 3 the shares to be placed out was expected to raise gross proceeds of up to RM11.1 million.
  
  This is based on a maximum issue size of 5.279 million placement shares, and assuming the issue price of the placement shares is fixed at RM2.10 per placement share.
  
  At RM2.10, this is a discount of about 7.9% from the five-day weighted average market price of up to Nov 2 of about RM2.28 per Jetson share.

Now don't you wonder?

Yeah I do wonder too.

Don't you love this placement share tool?

ps... so easy to make money hor.

ps/ps.. why call it private placement? call it privilige placement mah!

5.279 million shares at 2.10. Now the share price is at 2.94.

LOL!

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What's Next For Kumpulan Jetson?

Posted recently What's Up Kumpulan Jetson?

On today's Financial Edge Daily, the 'story' continues: Jetson shares fall after takeover fails

• KUALA LUMPUR: Securities of Kumpulan Jetson skidded in early trade on Friday, Oct 2 after a failed takeover by the sons of Naza group founder, the late Tan Sri Nasimuddin SM Amin.
  
  At 9.02am, Jetson shares fell 21 sen to RM1.61, the most in recent weeks, Jetson-WA lost 13.5 sen to 77.5 sen and Jetson-LA lost eight sen to RM1.50.
  
  The FBM KLCI fell 4.57 points to 1,203.78 in line with the weak regional markets after US stocks closed weaker. Turnover was 28.25 million shares done valued at nearly RM15 million shares.
  
  On Thursday, S M Nasarudin and S M Faliq failed in their conditional takeover bid for Jetson as minority shareholders rejected their RM1 per share offer price for the remaining shares in the company
  
  In a Bursa Malaysia filing, AmInvestment Bank Bhd on behalf of the joint offerors, said the offer only managed to secure 1,800 shares or 0.01% of its paid-up capital at the close of the offer.
  
  It said there was no acceptance of the offer for the ICULS and warrants that were respectively offered at 93 sen cash per unit and 0.01 sen cash per unit.
  
  According to the bank, the joint offerors had one third of KJB shares, 7,000 ICULS and 10,500 warrants as at Sept 10, 2009 which was the posting date of the offer document to the shareholders.
  
  The bank said the joint offerors only mustered 17.715 million shares or 33.35% of the issued and paid-up share capital of KJB since the commencement of the offer from Aug 20, 2009. As such, the joint offerors did not managed to secure more than 50% of the company’s shares which would have made their offer unconditional.
  
  AmInvestment announced that the offer had failed to meet the acceptance condition and thus had lapsed as at 5pm yesterday which was also the closing date of the offer.
  
  “The shares will be returned to the accepting shareholder or shareholders as the offer has lapsed and the joint offerers will not extend the offer period,” it pointed out.
  
  Nasarudin and Faliq have undertook a mandatory general offer (MGO) for KJB via Superior Pavillion Sdn Bhd (SPSB) and Odyssey Wealth Sdn Bhd (OWSB) which they have substantial interests. In August, 2009, KJB’s major shareholder who controlled a 33.15% stake accepted the offer from the brothers thus triggering the MGO.
  
  The original offer price for the shares and ICULS were 70 sen and 65 sen respectively while the offer price for the warrants remained the same at 0.01 sen, until the brothers upped the offer to entice shareholders to sell their securities.
  
  In concurring with its independent adviser Kenanga Investment Bank Bhd, KJB’s non-interested directors had advised shareholders to reject the conditional takeover offer as the prevailing market prices of the securities were significantly higher than the offer prices.

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What's Up Kumpulan Jetson?

Good article on Saturday Star Biz: Takeover bids jack up share prices

It features the takeover bid by SM Nasarudin SM Nasimuddin and SM Faliq SM Nasimuddin of the Naza Group of the rather very smallish construction company Kumpulan Jetson Bhd.

Yeah, smallish.

Kumpluan Jetson has a share base of 53 million shares only, discounting the loan stocks and warrants. (Jetson has some 6 million loan stocks and 17 million warrants)

As mentioned by the author of the article, Anita Gabriel, "“It’s a small deal, Who cares!” scoffs a banker in a cavalier manner. "

Yeah, who cares yet again.

That's it yes?

Who cares if the minority shareholders are screwed.

Anyway, here's the deal described by Anita Gabriel.

• Galvanising the takeover scene further, on Aug 20, Kumpulan Jetson announced that it received a takeover notice from Superior Pavillion Sdn Bhd, a company controlled by SM Nasarudin SM Nasimuddin and SM Faliq SM Nasimuddin of the Naza Group and Odyssey Wealth Sdn Bhd (which is 50% owned by the Nasimuddin brothers). The bid follows the acquisition of a 33.15% stake in Kumpulan Jetson on Aug 19 at 70 sen per share which triggered a conditional takeover offer for the rest of the shares, loans stocks and warrants in the company not already owned by them. The block was acquired from the company’s co-founders – Isnin Rahim (chairman and executive director) and brothers Datuk Teh Kian Ann (group managing director) and Tee Keng Kok (executive director), among others.
  
  Barely two weeks later, on Sept 7, the offer price was raised to RM1 per share (still below its net asset per share as at June 30, 2009 of RM1.54). Of course, minority shareholders (and profit seekers) cheered the move but what’s puzzling is why? The offerers had not made any further purchases since then and no explanation was given on the price revision. This begs the question – what could have changed in a short span of 12 trading days? This – its share price had skyrocketed by 48.5 sen or a whopping 66% in a single day following the takeover announcement. As of Friday, a month following the revelation of the takeover bid at RM70 sen per share and two weeks after the offer price was revised upwards to RM1, the share price stood at a high of RM1.96, taking little heed to Bursa’s warning to investors to trade with caution. Really, how high can it still go?

Yeah, all it takes is a takeover offer and the share rockets to the moon!

Anita raises more questions.

• Here’s the thing – if the purchase price of the 33.15% block was seemingly undervalued, then why were the shareholders willing to let go at such a price to the detriment of the minority shareholders?

Yeah, why?

• Adding to the bewilderment of market observers is that in recent days, Kumpulan Jetson’s director and co-founder Tee, who had earlier sold his stake to the offerers, has also been buying shares in the company. In filings with Bursa Malaysia, it was disclosed that Tee had bought 400,000 shares at between RM1.42 and RM1.43 on Sept 11.
  
  If Tee sold his stake at 70 sen a month ago and is now buying at just over RM1.40 per share, what is it that could have led to a change of mind? As a substantial shareholder (then) and director of Kumpulan Jetson, did he act in the interest of minority shareholders?

Now that's the obvious stinker!!!!

Sold at 70 sen but bought back some 400,00 shares between 1.41 and 1.43!

And Kumpulan Jetson last traded at 1.96.

How nice!

And of course, many would point out that this is such a smallish stock. It's way too easy to push up the shares!

And of course, many would also say.... 'Who cares!'

And here is the flight of Jetson the stock!

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