Saturday 9 August 2014

Fraud at Kontena Nasional

NCB Holdings Bhd has published the findings of the special review by forensic consultants regarding financial irregularities at Kontena Nasional Bhd, its daughter company.

With the authorities being informed of what happened we have to wait for the results of their investigations and the subsequent actions that they might take, this can take quite a while.

The irregularities had (not unexpectedly) a negative effect on the share price over the last year, the graph over the last 5 years, the price is about 40% down from its highest value:

It is the results of Kontena Nasional that is dragging down the results of NCB Holdings, from its last annual report:

NCB is a very tightly held company with PNB as its main shareholder. With only 180,000 shares one can be in the Top 30 of the shareholders.

On the other side, the Top 20 share holders own more than 91% of the total shares. In other words, the free float is tiny.

The accounts over 2013 do have an "emphasis of matter" by the external account, which is quite rare and a red flag:

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