Tuesday, 8 November 2011

Missed the Harvest Time!

If you dump in all your assets to buy Harvest shares at RM0.08 on 12 Oct 2011, you will be 1375% richer now, as its share closed at RM1.18 today. If you buy Harvest's warrant at the same period, it's even better, you will be 2900% richer by now!

Why does a low-volume, unpopular penny stock who was once a PN17 company and makes 17 quarter-losses in its most recent 20 quarters can jump in value more than 100x in less than a month? This is typically called "goreng".

Everything started when Raymond Chan bought 23.808 million Harvest shares at RM0.20 each (13.85%) on 18 Oct 2011. It seems like Chan is going to inject a company he owns, 1Green Enviro Sdn Bhd into Harvest.

1Green Enviro Sdn Bhd is involved in converting palm oil fruit bunches into paper. It is just established on 12 Nov 2010, exactly a year ago, with no track record of earning. Can it raise Harvest to such a level?

The other important factor is that our PM's son, Mohd Nazifuddin Najib, sits on the board of both Harvest and 1Green Enviro! This makes Harvest a strong politically-linked company.

Both Chan and Nazifuddin were just appointed into Harvest's board on Oct 28.

On Oct 27, Harvest announced that Mr Ng Swee Kiat (MD) has agreed to purchase and Affin Bank Berhad has agreed to dispose of the entire 31,410,664 shares together with 7,852,666 warrants held by Affin in HCIB at RM0.25 per share and warrant.

Can Affin say: "Sorry, wait a minute please, can I dispose at RM2.20 per share and warrant now???" Three weeks ago, Harvest's share is at RM0.08 and its warrant is at RM0.035. Now they are at RM1.18 and RM1.05 respectively.

On Nov 4, Raymond Chan purchased another 5.09 million of Harvest shares at RM0.849 to increase his stake to 16.81%. Nazifuddin also bought 1.19% of Harvest shares at RM0.845 for the first time on the same day.

In the meantime, Harvest also announced recently that it has clinched 2 contracts worth RM7mil and RM6mil respectively.

Nevertheless, Harvest made this announcement in Bursa today (Nov 8):

Harvest Court Industries Berhad (“HCIB” or “the Company”) refers to the article appearing in The Edge Financial Daily, Page 6 on Tuesday, 8 November 2011 and wishes to deny the following: -

i)   “Harvest Court Bhd is close to acquiring a new business which involves converting agricultural waste into paper”.

ii)   “The asset being injected into Harvest is believed to be a company called 1Green Enviro Sdn Bhd, which is linked to its substantial shareholder Datuk Raymond Chan”.

The Company wishes to announce that there was no discussion on asset injection as stated in The Edge Financial Daily on 8 November 2011.

The Company is subjected to rumours and reports that are misleading and the Board would like to remind the members of the public to trade precaution in regards to shares and warrants of the Company based on fundamental and formal announcements made by the Company.

There is no discussion on asset injection as of 8 Nov, and the discussion will start on 9 Nov? Haha.

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