WHETHER the writing is already on the wall or otherwise, May 9 (Monday) will be the day of reckoning for Serba Dinamik Holdings Bhd as it comes out from a nearly seven-month hibernation.
The global integrated oil & gas (O&G) outfit shall have its day of glory by standing before its ‘own courtroom’ with traders and investors (from foreign funds to local institutions to retailers) – who have been rightful owners of its stock which has since been suspended from trading on Oct 22 last year – sitting in as judges.
For the uninitiated, Bursa Malaysia Securities Bhd announced late yesterday (April 29) that it will uplift Serba Dinamik’s suspension on May 9 at 9am as the company has complied with its directive to reveal its Factual Findings Update (FFU) as per its announcement dated April 21 (the controversial 26-page statement).
This somehow coincided with a statement by the Retirement Fund Inc (KWAP) earlier yesterday that it “has relinquished its entire stake in Serba Dinamik and is no longer a shareholder”.
According to stock exchange filings, KWAP had ceased to be a substantial shareholder of Serba Dinamik on June 1 last year after disposing of 26.03 million shares in the company in the open market. Prior to the disposal, it held 195.04 million shares or a 5.257% stake as at April 27 last year.
Whatever the verdict on May 9 is, it can be assumed that the outcome would be unpleasant as many shareholders would likely have to bite the bullet which surprisingly many are willing to do so as they have accepted as destiny “it’s just one of my bad investment choice”.
“The resumption of trading will allow price discovery to take place,” the Minority Shareholders Watch Group (MSWG) CEO Devanesan Evanson told FocusM. “This would provide an opportunity for minority shareholders to make their informed investment decisions.”
Rather than ending up as a penniless pauper, many would cherish the prospect of at least being able to salvage something from their ill-fated investment – to be able to collect a dime or two is better than to end up empty-handed.
Many would have already written off their Serba Dinamik investment by now but to those who have gambled their life savings – notably, the retirement fund from their Employees Provident Fund (EPF) – this can be a painful lesson for they failed to foresee that a storm was brewing.
Many newbies were caught with their pants down in the quagmire for they failed to do proper research on the company (or it was just their misfortune) as were seasoned traders/investors who went for the broke in anticipation of ‘value-for-money’ buy or simply, they saw the light of a share price rebound (Serba Dinamik was last traded at 35 sen on Oct 22 last year).
It is too late to turn back the clock now for the onus – very unfortunately – lies with each trader/investor to make a careful stock pick and be ever willing to accept the consequences of their decision.
Pitfalls are everywhere and it should not end with Serba Dinamik – there have been instances in the past of what is perceived to be “law-abiding and profitable” blue chip stocks springing an awful surprise right smack on their investors’ face.
It is hoped that this costly lesson should stick in the mind/memory of all traders/investors and at the very least, to practise better due diligence in the future. – April 30, 2022
