How KFM is dealt with is worrying

I came across the Kuantan Flour Mill (KFM) deal which went into a quick exuberant and I believe tomorrow it will just crash again.

The share price went from around 5 sen to 24 sen within 1-1/2 days of trading mainly due to an indication of interest coming from FELCRA.

Now who is FELCRA? By right, it should be a respectable party - a business entity of the government. Read the information of FELCRA below. It basically reads that it is a party that we can trust.

Basically, the announcement on the first day (13 Dec after market close) is that there is an indication of interest from FELCRA to do a reverse takeover of KFM. KFM, being a company under PN17 and having little life left with negative NTA would obviously jump as a government entity is interested. A day after the evening announcement, it jumped to around 25 sen - more than 4 fold increase. That obviously makes people excited as if there is life if FELCRA is to come in.

Trading price of KFM within last few days

Then FELCRA did a turnaround. Less than 2 days after the letter of intent, it informed KFM that the interest ceased.

Announcement of cessation of interest

I am just thinking, for an organization with FELCRA's stature, wouldn't they be more careful before they send a letter of intent. KFM is a public company and there are enough numbers to be studied before an indication of interest and before a due diligence is made as well. Why a sudden turnaround in such a short span of time? Tomorrow obviously would be a bad day for people who bought KFM on 14 December. And I do not know how to think of this event as it comes from FELCRA, not any organization which sometimes we may not trust as much.

Now the question is who can we trust now after this?

Note that I do not know KFM much fundamentally, except that it is negative NA and under PN17.