Wednesday, 4 November 2015

Scan: sloppy announcement

I wrote before about Scan Associates' rather "frivolous" legal action against Bursa Malaysia.

The company made the following announcement:

Four times the term "Material Litigation".

But, as detailed in an announcement the following day, it actually concerns a "Letter of Demand".

A case of rather sloppy reporting.

Of a much more serious nature was the announcement last week"

"The directors wish to announce that the auditors were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the Company’s and Group’s financial statements for the period ended 30 June 2015."

Next to that, there are the very serious allegations against the ex-CEO and ex-CFO.

The company is losing money badly, and has a negative net asset value. A miracle is needed, soon.


  1. Can you help me? I bought xox share on Mon and the price drop to low level. What is share consolidate? Is it good or bad to investor? Should I hold or let it go?
    I am newbie in stock market. I am in dilemma. Please advice. Thanks in advance.

  2. Share consolidation is a neutral exercise, more of an administrative nature. I don't think that is the reason for the share going down.

    If newbie, then please stick to blue chips or some well managed funds.