FGV's delisting?

So, when you do not do well and feel that the market is not fair towards your value, what do you do? Delist. In the case of FGV, it is not that simple. It is a lot of small shareholders and some big shareholders losing money - including EPF (which is our money) I presume.

I had an old article back in 2012 where I questioned the rationale of FGV being aggressive. At that point of time, I obviously did not know it is going to be so bad even. Expected EPF to even support its shares and it happened for a period.

I am glad that EPF is the first to pull back and see what happened to its shares. Hence, the drop in FGV shares is both poor management as well as lack of support from what is supposed to be their saviour. I would not put it that bad-ly but if I want, it (the script) was supposed to be some big fund to support a listed company hoping it should sustain the share price while the company will pick itself into its supposed value. It did not happen according to script. Hey! Happened well with IHH isn't it? (Can you see that it is just a joke.)

The party that caved in actually is not EPF but greed probably from a group of managers who think that they can go and conquer the world. They have not managed to and to the extent, could not even do well in its own backyard.

Now KWAP is fearing of a delisting as if it is to be bought back at say RM3.00, they probably would lose substantial - which is probably what the article below is all about.

To be fair to this new team of managers, they probably realise that doing M&As are not that easy. Good deals is when you wait (learn that from YTL) not when you charge towards your targets.

The current situation for FGV is when it has to do a lot of revamping over the poor management in the past few years. I remember it even went to acquire a Cambridge GRAPHENE company. Who really know what graphene is? Even if it is, would FGV be in the position to execute well on the technology?

See - to clear up mess is harder than to create them. What FGV should do is to go back to basics i.e. improving yield, market exposure, partnerships etc. etc.

The fact of the matter is that it is still a substantial size organization and has the assets to put itself back into position. Prices of palm oil is also getting friendlier towards its mission. (For those who particularly like export stocks, it is an export stock!)

And the major seller (EPF) is also out now but REALLY, the most important thing for FGV is to get back to work - not being creative in exercises such as listing and delisting.

Between Airasia X and Astro's IPO

This morning while I was listening to BFM, it was talking about Airasia X's IPO opening which needed Maybank to stabilize the price to prevent it from dropping below its initial offer price. The station mentioned of it being the worst performing IPO in recent times. I think that's not true. Probably if we take into account not so long ago last year, perhaps Astro was worse dropping below RM3 for a long long while.

The difference between Airasia X and Astro. Well, if you give me the choice, I would take Airasia X despite both businesses needed huge capital outlay. Airasia X is looking towards growth prospects although the challenges are aplenty while Astro is looking towards a more bleak outlook having gone through maturity stage years ago and now fighting older age. It is fighting against something which it cannot fight - not ABN or RTM - but the internet.

One of the reason why the investment community are not favorable towards both IPOs are due to the pricing. They are just pushing the envelope. If you noticed, the more recent large IPOs are just too expensive for investors and the launching price just do not makes sense. IHH, FGV included but of course these two have big brother to support and make them look good but Airasia X (which remain to be seen as it is just 2 days) and Astro do not have that big brother.