Be wary of entering the stock, even if it falls another 30%. After a plunge like the one it went thru, Blumont could have many ripple effects that we can't see. For ex., what is going to happen to the many millions of dollars of Blumont stock bought on the way up and on the way down too? When do they come due and what is on the minds of the holders? Lots of volatility and uncertainty.
Insider Executive Chairman Neo Kim Hock had been selling rights & shares even BEFORE the suspension of 4 Oct without reporting to SGX till yesterday nite at 2336 hrs (Co Announcement no.171):
Wed (2 Oct): 4.0m rights at $2.2956 = $9,182,400
Thurs (3 Oct): 3.445m rights at $2.14 = $7,374,022
Fri (4 Oct): No announcement. Suspension day.
Mon (7 Oct): 500,000 shares at $0.1844 = $553,200
According to the sgx filing on 7 Oct, it was " sales due to Bank forced selling"
xtraderx ( Date: 07-Oct-2013 23:15) Posted:
The SSHs are holding over a billion shares of blumont, they are dead if blumont goes back to $0.02, this is an exercise to support the price, but will confidence return so easily?
Jackpot2010 ( Date: 07-Oct-2013 22:46) Posted:
Beware. Insider run road liao - Executive Chairman Neo Kim Hock is the 1st person to jump this (sinking) ship.
Neo Sold 95m of his shares to one ang moh who is taking over his post. Neo then redesignated to Non-executive director (i.e. hands-off day to day operations). Another insider also sold 40m shares to this same ang moh. This person is not named but could be Ng Su Ling (just wild guess).
The indicative price for the above sale @ 40c is questionable - its shows that insiders gave a low valuation of Blumont Group, nothing close to its previously traded price before its collapse of over $2. Even then why should the ang moh buy at 40c instead of 13c via open market transaction.
There are still lots of unanswered question on this co.
nvestors like coal business..good for Bluemountains
Originally Posted by Humsablo View Post
if buy @ $2, now shan shan yi ki kut.
won't be so fast given the news still fresh..from crash..but if co has prospects will find a decent level since the greater the crash the greater it will bounce backFest30240
WanSiTong ( Date: 08-Oct-2013 18:46) Posted:
FOR IMMEDIATE RELEASE
Blumont to extend loan facility of up
to US$8m to ASX-listed coking coal producer
Cokal Limited
Highlights:
Loan facility will enable development work to continue on Cokal?s projects
Blumont and Cokal will continue discussions on the Group?s further investment in Cokal
SINGAPORE ? 8 October 2013 ? Singapore Exchange Mainboard-listed Blumont Group Ltd. (博 诺 有 限 公 司 ) (" Blumont" or the " Group" ) announced on 7 October 2013 that it had entered into a binding Term Sheet (the " Loan Term Sheet" ) with Australian Securities Exchange (" ASX" )-listed coking coal exploration and development company, Cokal Limited (" Cokal" ) to extend a loan facility of up to US$8 million in principal amount (the " Facility" ) to Cokal. as set out in Annex A attached herewith).
The Facility is intended to allow development work to continue on Cokal?s projects. Meanwhile, Blumont and Cokal intend to continue their discussions on the Group?s further investment in Cokal. Further announcements will be made should these discussions result in any transaction.
Blumont had announced on 8 July 2013 that it had entered into a conditional agreement to acquire a 12.75% stake in the enlarged issued share capital of Cokal. The principal activities of Cokal are in coal exploration and the coking coal business. It holds interests in coal exploration tenements in Indonesia and Tanzania (
Currently, Cokal is developing its 60% owned flagship Bumi Barito Mineral Project (the " BBM Project" ), located at Upper Barito Coal Basin, Regency of Murung Raya, in Central Kalimantan, Indonesia, which was recently granted a mining production license of 15,000 hectares (the maximum area permitted under Indonesian legislation). The BBM Project has a total of 77.0 million tonnes of JORC1 compliant coal resources in multiple seams comprising 70.0 million tonnes of inferred resource and 7.0 million tonnes of indicated resource (70% of the resources are coking coal and 30% are PCI coal). Cokal has planned an exploration target of 200 million tonnes to 350 million tonnes down to a depth of 200 metres in thirteen seams for the BBM Project.
On 22 May 2013, Cokal announced an agreement to establish a 50:50 joint venture with Meratus Advance Maritime, to own and manage the shallow river barges and tugs designed specifically for PT Bumi Barito Mineral in its coal transportation. To further the exploration and to leverage on the infrastructure planned for the development of the BBM Project, Cokal has acquired a 75% equity interest in PT Tambang Benua Alam Raya, located at the southern boundary of BBM Project, with an exploration area of 18,850 hectares.
Cokal is led by Chairman and Chief Executive Officer, Mr Peter Lynch, who has, since 1988 held various positions within the coal industry in Australia, as mining engineer, project manager, mine manager, general manager and managing director. From January 2006 until January 2010, Peter was President, Chief Executive Officer and Director of Waratah Coal Inc., responsible for putting the Galilee basin on the map with his visionary development plan. During 2010 Mr Lynch acquired interests in coking coal projects in Central Kalimantan through a private company, now known as Cokal, which he took public in December 2012.
Blumont?s Chairman-designate, Mr Alex Molyneux, said:
" Blumont strongly believes in the potential of Cokal and its assets. We are extending this Facility for the purpose of furthering their development of these assets while we continue to discuss the Group?s possible investment in Cokal. We look forward to working with Peter Lynch and his team. Peter is a visionary leader with a recognised track record in the coal mining industry in Australia and this latest development reinforces the strategic goals and new direction of Blumont in partnership with industry stalwarts."
Under the Loan Term Sheet, Cokal may draw down the principal amount of US$4 million on the Facility no later than 1 November 2013, and the balance principal amount of US$4 million at any time after 1 November 2013, in whole or in part, provided that both parties agree to the drawdown. The Facility shall be repaid at any time within three years from the date of the first drawdown, provided that if the Company subsequently subscribes for any new shares in the issued share capital of Cokal (the " Subscription" ) and the subscription agreement documenting the Subscription so provides, the proceeds received by the Company from the Subscription shall be used to repay the Facility. The Facility will be funded by the Group?s internal resources, including from the proceeds of the rights issue announced by the Group on 29 July 2013.
New Strategic Direction
Since December 2012, Blumont has been actively pursuing opportunities in the mineral and energy resources sector as part of its strategy to become a diversified global resources company. A list of related transactions is set out in Annex B attached herewith. On 21 August 2013, the Group announced a proposed name change to
Blumont Phoenix Corporation Ltd to reflect its new business direction, subject to shareholders? approval. This reinforces Blumont?s new strategic move into the mineral and energy resources space
Originally Posted by xfactor View Post
Hoosier/erebos
I believe that the second wave will kill punters who rushed in Tuesday and Wednesday when the stocks ie the infamous 3 rebounded. More joined in on Thursday morning, the second wave of the Tsumani hits the crowd busy picking what they consider as Gold and Diamonds. Friday was a debacle and the syndicates unloaded more and stocks really plunged
I expect more blood on the streets on Monday when those early birds who bought and Monday will take whatever profits available
The effect will be felt by the secondary, innocents or otherwise all new resources stocks like Mirech Energy, Rex, Magnus, IPCO, Ramba Innopac( a member of the infamous
3
Those who bought on Tue 8 Oct can start selling on Mon 14 Oct..and for Bluemon the rights shares coming back soon ..more downward pressure..
Be careful if the loans pledged by designated stocks were used to buy more such designated stocks previously..then the domino effect difficult for the 3 stocks to rise..u notice those who rush in to biuy in the morning by afternoon or 10a.m the stocks start to fall..effect of forced selling by the banks
RED FLAG:
Forced sales by bank on Thurs 10 Oct:
1) Former Executive Chairman Neo Kim Hock sold 2.922m shares @20c for $586,416
2) Present CEO James Hong Gee Ho sold 1.5m shares @19.82c for $297,300
edwinjup ( Date: 12-Oct-2013 08:19) Posted:
Thanks..hope sgx can actions faster....if sgx suspend this three counters...sgx ceo better provide a super good reasons or else pls resign
akchua ( Date: 12-Oct-2013 08:08) Posted:
Of course u are right. They deliberately stopped servicing the loan to trigger the force selling, so that they can keep reducing their share holding to the market.These buggers have planned so many ways to exit, very experience people.
How to rise but not the Blumont Way:
How to rise 800% without material information:
The global success of “Gangnam Style,” the 18th K-pop single by the South Korean rapper PSY in 2012, was an exogenous shock to international investor enthusiasm about DI Corp., because the company’s chairman and CEO is PSY’s father. The stock price of the semiconductor equipment company jumped by almost 800% in three months without material information.
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