Maybulk: Light At The End of The Tunnel?

 

A few years ago, I read an article written by respectable investor "Cold Eye" regarding Maybulk.

It was published in end of year 2018. He opined that dry bulk shipping industry was recovering from 10-year slump and might turn bullish partly contributed by lower supply of bulk carriers.

I think I came across this article only in 2019. I checked Maybulk's recent financial performance and it was all red. Straight away I lost interest in it at that time. 

I didn't study the stock and the industry at all.

Now, after a reader mentioned Maybulk in this blog, I started to look at it again.

Dato Abdul Karim's Stocks: Opportunity or Trap?

It's been three weeks since Serba Dinamik first announced its intention to appoint an independent film to commence a special independent review on its account on 25th May 2021.

Today, finally it has announced the appointment of Ernest & Young as the independent reviewer, together with 3 new independent and non-executive directors.

In the past 3 weeks, Serbadk share price suffered drastic drop from RM1.61 to a low of RM0.54 before rebounded today to close at RM0.745. 

It's a huge 66% drop in just 10 trading days.

SCIB and KPower which are Dato Abdul Karim related stocks are also negatively affected as expected.

SCIB's share price fell 40% from RM1.49 to RM0.88, while KPower dropped 30% from RM1.69 to RM1.18 in 12 trading days.

Are these the lowest share price for those 3 companies before the result of independent review, or will they drop further?

My Portfolio May21

Summary For May 2021

Portfolio @ End of May21

Due to the slump in SCIB share price, my portfolio suffers its heaviest loss in one month at -19% since losing 21.7% in Mac20. 

SCIB was my major holding and made up ~40% of my portfolio. It has contributed massively to my portfolio gain this year but now I have to vomit out those gain.

The big news in the stock market in May should be none other than Serba Dinamik's audit issue.

Serbadk first announced its intention to appoint an independent firm to commence a special independent review on its accounting matters raised by external auditor KPMG on 25th May 2021.

It's then followed by a public holiday, 2 days of trading suspension and 2 days of weekend. 

When trading resumed on the 31 May, its share price straight away limited down.