Trading in penny stocks is not for the faint-hearted. Penny stocks are considered lucrative but high-risk bets. Investors are drawn to penny stocks for their low prices and hopes of huge profit upside despite the high risks involved. Potential investors should be careful to understand what they are getting into.
19.05.2023
Troubles brewing at Bahvest
Trouble is brewing at Sabah-based mining company Bahvest Resources Berhad after a private company owned by its managing director and chief executive officer filed a letter of demand (LOD) to the listed entity for trespassing into a concession area that the private company owns. This is on top of a string of investigations and material litigations to deal with.
The LOD is seeking RM20.4 million in compensation from Wullersdorf Resources Sdn Bhd (WRSB), a 100% subsidiary of Bahvest, for wrongful occupation of the mining land belonging to Southsea Gold Sdn Bhd (SGSB) for the period between September 2017 and April 2023. At the same time, SGSB demanded that WRSB vacate and move all operations out of SGSB’s mining lease land within 30 days from the date of LOD. SGSB has subleased 317.7 ha of land to WRSB since 2017 at RM60,000 per annum for 33 years.
Corruption in PLCs
In January 2023, the global anti-corruption coalition Transparency International revealed that Malaysia’s 2022 Corruption Perceptions Index (CPI) score deteriorated to 47 points from 48 points in 2021, where 0 is highly corrupt, and 100 is perceived as very clean. The CPI is the most widely used global corruption ranking in the world. It measures how corrupt each country’s public sector is perceived to be, according to experts and businesspeople.
From 53 points in 2019, Malaysia’s CPI has fallen 6 points over the past three years. The drop is statistically significant, indicating that the country is heading in the wrong direction regarding fighting corruption, supporting human rights and democracy in the public sector.
According to the Malaysian Anti-corruption Commission (MACC), corruption is the act of giving or receiving any gratification or reward in the form of cash or in-kind of high value for performing a task in relation to his/her positions.