My Portfolio Jun21

 

Summary For Jun21

Stock Portfolio @ End of Jun21

My Portfolio registered 5.3% loss in the month of June, mainly "contributed" by the huge drop in SCIB, SCIB-WB, and to some extent, JAKS.

Overall year-to-date return has dropped to merely 2.3%.

I have sold part of SCIB's shares again this month at 77.5sen. Initially I planned to sell all of its shares and warrants to wrap up my investment in it, but last minute I changed my mind and sold only half of the remaining mother shares.

However, its share price continue to drop to 50sen, below my average price of 54.5sen

Anyway, SCIB has finally released its FY21Q1 result which was a bit of relief to me even though the result was slightly below my expectation.

So far there is still no mention of any accounting issue by its external auditor KPMG.

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.

SCIB Updates: Free Warrants On The Way

Finally SCIB's free warrants ex-date & exercise price have been announced. Shareholders have been waiting for it until sore neck.

The exercise price is fixed at RM1.77 per warrant which is higher than latest mother share's closing price of RM1.70, and it will be ex-ed on 2nd Feb 2021.

The reason I haven't sold any of my SCIB shares yet is because of this free warrants, it's quite a "generous" offer of 1 free warrant for every 2 SCIB shares.

Now the bonus shares and warrants are done, how about the future of this company?

SCIB: Bonus Towards Billion Market Cap

 

A day after I wrote that SCIB does not have the ability to do bonus issue, the company proposed bonus issue and free warrants.

I thought bonus issue can only be done by capitalization of retained earning of a company, but now it seems like it can still be done without it.

SCIB has no retained earning with only accumulated losses before this. Now it has proposed bonus issue of 3 bonus shares for 1 existing share, with 1 free warrants for every 2 shares held after the bonus issue.

So that means if you have 1 SCIB share now, after the exercise you will have 4 SCIB shares and 2 SCIB warrants.

Its outstanding shares will go up from 122.6mil to 490.5mil shares, and there will be about 245mil warrants which have a tenure of 3 years.

SCIB: SERBADK 2.0?

About the same time when acquiring KPower shares, Datuk Abdul Karim of Serba Dinamik emerged as a controlling shareholder of Sarawak Consolidated Industries Berhad (SCIB).

SCIB's share price responded by surging from around 60sen in May19 to RM3.50 in Feb20. Covid-19 bear market dragged it down to RM1 and currently it recovers to RM3 level.

Before the change in major shareholders, SCIB was a struggling loss-making company.

Similar to KPower, I didn't have interest in this kind of loss-making company when the visibility of earning is in doubt.

However, studying KPower in late May20 inevitably brought me to SCIB, and I found that SCIB is an even more exciting company.