By Mak Yuen Teen
Last night, I saw an announcement by MMP Resources which tells me that the death spiral that SGX is currently caught in with respect to quality of listings and market confidence is not about to end anytime soon. The announcement is here:
https://links.sgx.com/FileOpen/MMP_Annt_Update%20on%20Application%20for%20Ext.%20of%20Time_Watchlist.ashx?App=Announcement&FileID=619562
MMP had applied for an extension of time to exit the watchlist based on financial criteria so that it can do an RTO (the MTP watchlist which it was also on has been discontinued by SGX) . I had expected that SGX would say no – MMP has nearly as many lives as a cat, having received eight consecutive disclaimers of opinion given by three different external auditors. This is likely a record on SGX. I would be surprised if there is any other recognised stock exchange around the world that has a company with eight consecutive disclaimers of opinion, countless questionable transactions, year after after of losses and trading at the abysmal price of just 0.3 cent, to still be allowed to be listed.
The absence of regulatory action has befuddled me over the years. Others have pointed out to me that some companies that have been forced to delist have a much better case for remaining, which also raises questions of whether all companies are treated the same way. Since SGX does not explain such perplexing decisions, it obviously raises all sort of speculation as to why this company is allowed to continue embarrassing the market.
Here is the most recent piece on the company which my students wrote and which I edited. I am sure there will be more to come because as long as this company continues to be listed, I will continue to follow its every move.
