PYE 0577.HK engineers entering film business

The board of Paul Y. Engineering are bored with pocket lining engineers and want to hang out with actresses. Now these engineers are intelligent and they intimately know actresses are attracted either with looks/charm, or money and promises of fame. The later options are decidedly easier so what better than to start your own film company!

Original company activities: building construction, civil engineering, development management, project management, facilities and asset management.

New actress attracting idea:

The Board, in its continuous efforts to explore new projects and

potential business developments that stand to benefit PYE and all Shareholders, has made the decision

to diversify PYE’s business through a series of transactions that would involve PYE undertaking a

substantial capital raising exercise, predominantly for the purpose of funding its involvement in a new

joint venture with market leaders, Legendary and the Huayi Group, to develop and produce films,

predominantly in the English language intended for a global audience, based on Chinese history,

mythology or culture.

Note: Third Avenue has a 10.72% holding in PYI. Given Marty Whitman's views on being an "Outside Passive Investor", and his reluctance to engage in any corporate activism, expect him to liquidate this position.

Intel acquires McAfee..

McAfee shareholders are still rejoicing with this early Christmas present from Otellini - the book will be a bestseller, "How we head faked the idiots from Intel"

“(1) As if governed by Newton's First Law of Motion, an institution will resist any change in its current direction; (2) Just as work expands to fill available time, corporate projects or acquisitions will materialize to soak up available funds; (3) Any business craving of the leader, however foolish, will be quickly supported by detailed rate-of-return and strategic studies prepared by his troops; and (4) The behavior of peer companies, whether they are expanding, acquiring, setting executive compensation or whatever, will be mindlessly imitated. Institutional dynamics, not venality or stupidity, set businesses on these courses, which are too often misguided.” - Buffett

Forge Group (FGE) now trading at $3

Meanwhile down in oz..

The FGE management sold out half their holdings at @$2.10 to Clough. Are these dumbwits still 'excited' about "The Strategic Alliance Agreement provides an operational framework to deliver the expected benefits and facilitate long‐term strategic co‐operation between the companies. " ? A whole wordy explosion of airy fairy flatulence.

Clough has 2.11m shares at purchased prices of $2.10 per share and 31% of Forge. At the recent market price of $3 for FGE, Clough is sitting on a $23m profit which is about the same as what Clough has earned for the LAST TEN YEARS IN TOTAL ($27m).

Forge management has effectively handed control over to Clough, a company that has made losses 3 years out of the last 5. The Forge shareholders can now expect to get really forged, no imagination required to guess who will get the meat and who will get boned.

Dumb fuck award goes to Forge Group (FGE) management

For not only accepting but for soliciting an offer from Clough of $2.10/share. The morons not only short change themselves but also shareholders in pursuing their exit strategy.

Independent advisor says offer is "NOT FAIR AND NOT REASONABLE" and estimates values of shares at between $3.74 and $4.13.

Peter Hutchinson, the Management Director is still bound to selling half his shares and options at $2.10, gives control to Clough at below market price and easily qualifies for senior moron status.

The directors who previously okayed the deal now abstain, while one independent advises against accepting.

The $2.10 which FGE management has accepted is :

• a discount of 18.6% to the closing price of Forge Shares of $2.58 on 13 April 2010, the day before the date of this Target’s Statement;

• a discount of 9.09% to the closing price of Forge Shares of $2.31 prior to the Announcement Date;

• a discount of 0.94% to the VWAP of Forge Shares of $2.12 for the 1 month prior to the Announcement Date; and

• a discount of 1.87% to the VWAP of Forge Shares of $2.14 for the 3 months prior to the Announcement Date.

These fuckers must be desperate to exit and this can't be good news for FGE as an ongoing concern.

PME Group (0379) convertible bonds, 91% discount!!

Company planning to raise $246M in cash from convertible bonds.

- Conversion shares of 487% of existing issued capital!!

- Conversion price of HK$0.03. Current stock price: $0.337. DISCOUNT OF 91%!!!!

- Current market capitalization : $623m (96% of book)

So shareholders (74.5% in public hands) are going to get savagely raped by the management who think the shares are worth less than 10% of book value.

Who gets the convertible bonds? In the filing:

“Placee(s)” any individual(s), institutional(s) or other professional investor(s)

procured by the Placing Agent, pursuant to the Placing Agent’s

obligations under the Placing Agreement, to subscribe for any part

of the Convertible Bonds

“Placing” the placing of the Convertible Bonds, on a best effort basis, by the

Placing Agent (pursuant to the Placing Agreement) under specific

mandate.

“Placing Agreement” the agreement dated 7 January 2010 and entered into between the

Company and the Placing Agent in relation to the Placing

No prizes for guessing what the shares will do tomorrow.

The SFC and HKex sleeping as usual.

Beware.

Donald Tsang Hong Kong CE

Asian Citrus..

People throwing money like rocks, portfolios of glass.

Asian Citrus opened at HK$51.25 ($6.61) in Hong Kong, compared with the closing price of 45.75 British pence (76 cents) yesterday for the London-traded shares. The stock in Hong Kong later fell to HK$19.94 when it was suspended at 11:57 a.m. local time, according to exchange data.

Not Worth HK$50

Asian Citrus is  not a HK$50 stock, South Ocean s McConnell said.

The company s net tangible asset value per share was 37.3 yuan ($5.46) on June 30, according to its listing prospectus. By displaying this figure without noting the stock split, Hong Kong Exchange s computers may have led investors to  think that their investment is backed by 10 times more assets than it really is, Webb said.

Naked options and advisors

Meanwhile down under, advisors trading naked options on behalf of clients. I guess the 'helper' was so successful trading his own account and being a kind soul he wanted to spread the loot by helping his clients.

Unfortunately the market doesn't respect visualizations..

From the SMH:

But in the winter of 2004 it all turned sour. Within a year many Ord Minett clients had lost all their money - millions of dollars wiped out in increasingly risky options trading.

ASIC has investigated the claims against Ord Minnett and said in July last year that it would ''not take any further action & at this time''.

Ben Leeden continues to work as a private client adviser in Ord Minnett's Gold Coast office. His former clients say they are still "very hopeful" of recouping some of their losses from Ord Minnett.

"I visualise it every day," Tyson says. "I do a lot of visualisation."

Nothing wrong with a bogus degree

We have "every confidence" in the way we vetted the candidate and that it's a piece of paper... like any other degree. It's not just Neo-Non (0583.HK) it's Really-Non.

"The company would like to confirm that [its chief executive] Dr Tseng Jinsui has obtained the doctoral degree in computer science from Edenvale University through required procedures," said a Neo-Neon spokesman.