KNM Group Berhad. 13,000,000 Units Accumulated by EPF.

Early in the morning I have posted some article about KNM (written by Mr. Dali). What I disagree about that this thing shouldn't be mention at all if there is nothing to support the statement that Mr. Rock mention. Here was his comment that he left on Mr Dali article in Malaysian Finance Blogspot. I think I need to answer some of his question if you all don't mind. It might be true and it might be wrong also. Just make your judgement.

The Rock has left a new comment on Mr Dali post "What's Shaking KNM":

I have been following KNM since early 2006. Made some small money. Recently I reviewed it again and asked around - what's happening to the price? Well the inside news is a total shock to me. No analyst or newspaper have a clue to what is really happening in the company or to its financial backers.

While it's probably not going to be a Transmile, but the people (a few of them, not just one) who have dealings with KNM advised me to stay away from the company.

One of the worse thing that happened to them was that the promoter's strongest financial backer decided to pull the plug ! That's is when u see the share price started to crash ! It has nothing to do with foreign funds. This is a local guy.

Jackie Lee : Point no.1 - Share price started to crash? This is nonsense. If we check on all the share prices, there are many counters facing the same situation since July 08 until now ever since the KL Composite started to move downtrend. KLK from as high as RM 19.00 drop to RM 7.00 in six months, would you call they are facing some problems ?

Second is KNM overpaid for Borsig. When a PE firm sells you something you got to ask WHY WHY WHY ? It was done at almost the peak of the oil cycle. Any acquisitions done in 2007 or even 2006 will be costly to the buyers. Look at Rio Tinto now trying to swallow their USD38 bil debt for buying Alcan ! It can actually bring down Rio if they can't get refinancing or the economy gets worse from here.

Jackie Lee : Point no. 2 – Who will know when you done a transaction it was at its peak of oil cycle. I think during that time most of us never knew that oil prices will reach USD 147 per barrel in July 08 and drop until USD 35 per barrel in December 08. This is what we call business. Sometime you win, sometime you lose. Right at this moment the global financial crisis just only started. It is only 4 months old. Would there be any problem during this short time of period for Borsig ?

The 3rd point is I was told KNM is linked to a political figure whose fortune has taken a turn for the worse since the March 8 general election. This point is related to the first point.

Jackie Lee : Point no. 3 – You was told KNM was linked to a political figure. Can I ask you a question, did any of the project that has been awarded to KNM has been taken back since March 8 general election. Political figure is easily to get some contract. Without the political figure I don’t think it is a problem for them because we must remember that the government’s is still the Barisan Nasional not Pakatan Rakyat.

Don't ask me to reveal the names of the no.1 and no.3 guys. If you think what I say here is credible - good. If not - it's your problem. I have bought Transmile shares before it crashed and suffered massive losses when the fraud was announced. Lesson learnt : when in doubt - don't touch.

Jackie Lee : You brought Transmile share during their share prices are higher. I think probably at RM 10.00 to RM 12.00, so it not a surprise if you suffer a lost at this level. KNM Group Berhad at RM 0.40 to RM 0.45 per share what do you expect ?

They are so many other clean stocks/companies to buy/invest. Why bother with a stock just because it was the darling of the analysts, whom none have had business dealings with KNM !! My sources are people who actually have had dealings with them. It is not based on newspaper or desktop analysis. You need to have an inside track in the current crisis before you jump in and put your money at risk. The low tide will expose more fraud.

Jackie Lee : Market is going for a trend reversal and EPF is accumulating the shares. 13,000,000 unit. I think EPF is wiser in making any decision in terms of their investment. KNM also lauching a share buy back programs at about RM 0.40 to RM 0.70 per share. Now their treasury share is about 36,290,200 units. At RM 0.40 over cents still cannot buy for short term play ?

MY advise - wait for a few more months and see if any more funny business surfaces. No point trying to jump in now hoping to catch at the bottom when we just don't know where and when is the bottom ! Just trying to be helpful...caveat emptor.

Jackie Lee : Because of this unreliable source or rumours, it has hamper many player to go in and make some profit out of it. This is a share market and anything can happen. I didn’t blame on The Rock for leaving a comments to Dali’s. He is just trying to give his concerns over KNM. It is just that RM 0.40 to RM 0.45 is indeed very cheap and if the counter went up to RM 0.70, it would be so disappointed that we were left out from this upwards bandwagon.

Today KNM Group Berhad share prices close at RM 0.48 per share.