MUHIBBAH director sell shares at RM1.82

Director sells shares


MUHIBBAH Engineering (M) Bhd executive director Lee Poh Kwee disposed of some half a million shares in the company for RM1.82 on June 16.


Source:
http://www.btimes.com.my/Current_News/BTIMES/articles/20110621232101/Article/#ixzz1PxOqTaa4

Short Comment:

I guess the indication is quite straight forward, even director is selling...

Kenanga downgrade Muhibah to HOLD

News reported that CIMB Bank is pulling out the financing for APH. This could lead the potential write off for Muhibbah amount due from APH amounted up to RM370m as per audited account 2010. Based on the report, to date APH has drawn down up to RM840m loan from the RM1.4b bridging loan facility by CIMB, which secured in 2006. At present, APH’s main shareholders are KIC Sdn Bhd (40%), PTP Sdn Bhd (35%) and Trek Perintis Sdn Bhd (15%). We view this news as negative to Muhibbah in the short-term. As such, we downgrade our call from BUY to HOLD (due to the uncertainties) but maintain our Target Price of RM2.24, as we keep our forecast unchanged at this juncture, pending for further clarification on the issue.