Takaso Resources: What's next?

Takaso Resources took my attention when I realized that its warrant has been trading at a negative premium to its mother shares last week. 

Seem like a good deal ... Yea .. but have a check first

A quick glance at its financial statement will stop you from study it further. Making net losses, high borrowings and poor cash flow. A typical poor company waiting to be rescued. 

Interestingly, little did I know that the group is also one of the condom manufacturers. It surprised me.

Yes, that is PlaySafe, manufactured by the group. 

So, even your products are used no matter we are in economic crisis or in a bull market and even the rubber price keep dropping down, it doesn't mean you are still making money. 

But what interested me is that it seems like there is some corporate movement in the group. 

3/11/2014    
Ong Kah Hoe emerged as new substantial shareholder with 15.6 mils direct shares and 10.2 mils indirect shares. 

3/11/2014    
At the same day, Tan Ooi Jin (Independent Non-Executive Director) and Yong Mong Huay (Executive Director) disposed all their shares in open market. 

4/11/2014   
Tee Tze Chern (Chairman, Ex-Managing Director) acquired 4.5mils shares in open market to increase his holdings to 1.17% direct and 16.93% direct. 

7/11 & 11/11/2014
Ong Kah Hoe further increased his holdings to 18.62mils (10.41%) and indirect 17.02mils (9.52%)

14/11/2014
Ong Kah Hoe was appointed as Non-independent & Non-executive director of the group.

3/12/2014
The group announced a private placement issue with new 17.9 mils shares placed at RM0.514.

15/12/2014
Yap Hoong Chai emerged as new substantial shareholder with 5.06% stake at which 10mils shares was subscribed from the private placement. 

17/12/2014
Ong Kah Hoe further increased his holdings to 18.62mils (9.41%) and indirect 22.70mils (11.49%)

17/12/2014
OCR Land Holding Sdn Bhd emerged as new substantial shareholder with 12.5mils (6.31%) direct shares holdings at which Mr Ong is deemed interested. 

30/12/2014
Extension of proposed acquisition of Dynavance Construction Sdn Bhd to 31 March 2015. Ong Kah Hoe is one of the directors and shareholders (15%) of Dynavance. Acquisition cost is RM9.5mils. However, Dynavance made a profit guarantee of RM12 net profit after taxed for a period of 24 months. 

13/1/2014
Received a Letter of Award from OCR Land Holding Sdn Bhd to complete and construct a block of 21-storey commercial building for a contract sum of Rm37.4mils. 

23/1/2014
OCR Land Holding increase its shares holding to 27.5mils (13.88%) direct shares. It increased Ong Kah Hoe direct holdings to 18.6mils (9.4%) and 37.7mils (19.05%) indirect holdings. 


So, what Mr Ong wants to do with this company with latest close to 30% ownership? 

Anyway, it's just for reference. The company's fundamental is bad enough at this moment.
It's just a fry stock. 

I will just sit tight and watch movie.

Let's see what is his next move to move forward.