Showing posts with label Pearl (Lu'lu) Real Estate. Show all posts
Showing posts with label Pearl (Lu'lu) Real Estate. Show all posts

Wednesday 1 September 2010

Kuwait Stock Exchange Suspends 5 Additional Companies for Failure to Pay Listing Fees


The KSE announced that it had suspended seven companies from trading due to failure to pay 2010-2011 listing fees.  Two of the companies, Shabka and Safat Global, were already suspended for failure to pay the previous year's listing fee.

While financial distress is not the only reason why a Company might not pay the fee, it's a pretty safe bet that most of the companies on the list did not pay for that reason.  Six of them  them have already been suspended for failure to provide financial reports.  Some for quite extended periods.  For those previously suspended, I've highlighted the word  "موقوفة " in blue.

The companies are (listed in the same order as the Arabic):
  1. International Investment Group
  2. Gulf Invest  aka Gulfinvest International
  3. Pearl (Lu'lu) Real Estate
  4. Safat Global
  5. Mushrif Trading and Contracting (the only company on the list not suspended for failure to provide financials)
  6. Al-Abraj Holding
  7. Shabka Holding
 
[10:26:55]  ِ.إيقاف شركات عن التداول لعدم تسديد رسوم الاشتراك السنوي ‏
يعلن سوق الكويت للأوراق المالية بأنه تم إيقاف تداول الشركات
التالية لعدم تسديد رسوم الاشتراك السنوي لعام 2010- 2011 ‏
اعتباراً من اليوم 1-09-2010:- ‏
ِ1- المجموعة الدولية للاستثمار ‏(المجموعة د)(موقوفة) ‏
ِ2- الشركة الخليجية الدولية للاستثمار ‏(غلف انفست)(موقوفة) 
ِ3- شركة لؤلؤة الكويت العقارية ‏(لؤلؤة)(موقوفة) ‏
ِ4- شركة الصفاة العالمية القابضة ‏(صفاة عالمي) (موقوفة) ‏
ِ5- شركة مشرف للتجارة والمقاولات ‏(مشرف) ‏
ِ6- شركة الابراج القابضة ‏(الابراج)(موقوفة) ‏
ِ7- شركة الشبكة القابضة ‏(الشبكة)(موقوفة) ‏
علما بان اخر موعد للسداد هو 31-08-2010 .‏
علما بان اخر موعد للسداد هو 31-08-2010 .‏

Wednesday 4 August 2010

Lu'lu (Pearl) Real Estate -2009 Losses KD9.5 Million Bank Lawsuit for US$539.2 Million


Pearl issued a press release on its 2009 financials this morning (3 August) on the KSE.  Text below.  Arabic only as usual.

While the loss is eye-catching, what is of even more importance is the lawsuit by a Kuwaiti bank against the Company for US$539,200,000 plus interest for derivatives transactions.   Even in the miraculous world of Kuwait, there is no way Pearl can pay even one tenth of that amount.

Quick translation of the main points from the press release and then some comments.  (Note the figures on the left are 31 December 2008 comparables):
  1. 2009 Net Loss KD9.542,591
  2. Loss per share KD37.94
  3. Current Assets KD20,653,865
  4. Total Assets KD56,686,155
  5. Current Liabilities KD42,979,231
  6. Total Liabilities KD47,262,815
  7. Shareholders' Equity KD9,423,340
  8. Income from Related Parties KD1,290,260
  9. Expenses to Related Parties KD137,332
Pearl's auditors noted they do not have details on how the lawsuit amount was calculated.  And that this case raises a material uncertainty so they cannot express an opinion on the financials.  Technically, an audit opinion disclaimer.

Now the tafsir.
  1. At 3Q09, Pearl's net loss was KD6,777 million.  So there doesn't appear to have been any dramatic increase in losses in 4Q09.
  2. Minority interest which was KD1.225 million at 3Q09 seems to have disappeared.  Usually Shareholders' equity is reported excluding Minority Interests.  Unless roughly half the 4Q09 loss is attributable to Minority Interests.  Anyone out there who knows, please post a comment.
  3. By my rough calculation, Pearl has lost around 71% of legal (paid in capital).  One caveat:  without knowing what happened to the Minority Interests, this can be only a rough guess.
  4. AlZumorrodah Investments owns a majority of the  Company.  Somewhere around 53%.  You can access other posts involving AlZumorrodah by using the epynomous "label"
  5. Pearl is suspended from trading on the KSE as it has not presented its 31 March 2010 financial yet.
  6. The Board has sensibly recommended against any dividends for 2009.  (Mentioned in the headline  on the KSE's announcement page but not in the Arabic text below).

]  مجلس ادارة(لؤلؤة)(موقوفة)يوصي بعدم توزيع ارباح للسنةالمنتهيةفى31-12-09 ‏
يعلن سوق الكويت للأوراق المالية أن مجلس ادارة شركة لؤلؤة الكويت العقارية
ِ(لؤلؤة) قد اجتمع يوم الاربعاء الموافق 28-07-2010،واعتمد البيانات المالية
السنوية للشركة للسنة المنتهية في 31-12-2009 ،
وفقا لما يلي:‏
ِ1) الفترات الحالية:‏
البند       السنة المنتهية في 31-12-09   السنة المنتهية في 31-12-08‏
الربح(خسارة)(د.ك)             (9.542.591)         (7.935.133)‏
ربحية(خسارة)السهم (فلس كويتي) (37.94)               (31.54) ‏
اجمالي الموجودات المتداولة    20.653.865         27.550.454‏
اجمالي الموجودات              56.686.155         66.884.194‏
اجمالي المطلوبات المتداولة     42.979.231         42.335.372‏
اجمالي المطلوبات               47.262.815        47.539.987‏
ِ اجمالي حقوق المساهمين       9.423.340          19.344.207‏
بلغ اجمالي الايرادات من التعاملات مع الاطراف ذات الصلة مبلغ 1.290.260 د.ك
بلغ اجمالي المصروفات من التعاملات مع الاطراف ذات الصلة مبلغ 137.332 د.ك
علما بان تقرير مراقب الحسابات يحتوي على اساس عدم ابداء الراي التالي:‏
اساس عدم ابداء الراي:‏
قامت شركة لؤلؤة الكويت العقارية - ش.م.ك.(مقفلة) بالدخول في معاملات مشتقات
مالية مع احدى البنوك المحلية ، وقد قام البنك برفع دعوى قضائية على الشركة
بالمطالبة بمبلغ 539.200.000 دولار امريكي مع الفوائد . ان اساس احتساب هذا
المبلغ غير متاح لنا ، وحتى تاريخ اصدار البيانات المالية المجمعة المرفقة ‏
ما زالت القضية منظورة امام القضاء ولايمكن حاليا تحديد نتيجة هذه القضية ‏
على الشركة (ايضاح 35) .‏
عدم ابداء راي:‏
بسبب الاثر الجوهري للامر المذكور في فقرة اساس عدم ابداء الراي ، لم نتمكن ‏
من الحصول على ادلة تدقيق كافية وملائمة لابداء راي التدقيق ، ولذا فإننا ‏
لا نبدي راي حول هذه البيانات المالية المجمعة .‏

Monday 2 August 2010

Al Joman: Analysis of Loans by Kuwait Economic Sectors



Last month the fine folks at Al Joman Center for Economic Consultancy published a series of reports analyzing loans by economic sectors (as defined on the KSE) except for the Banks Sector.

Looking at aggregate sector data, we can get an idea of the relative size of a sector and thus its relative importance in the national economy. 

Also by looking at the relative borrowings by firms within a sector we can get a better understanding of the dynamics of that sector. Is the sector dominated by one or a few firms? Or is competition fairly widespread? Which firms are the major players in a sector? 

In several sectors the largest firms (measured by debt) are fairly small.  This is a reflection of the overall size of the Kuwaiti economy as well as government dominance in certain economic activities.

But, and there is always a "but" with AA, there are some factors which mean any conclusions we draw are imperfect: 
  1. Al Joman's reports are based only on companies whose shares are traded on the KSE. Private firms are not included. 
  2. We're using debt as a proxy for asset size. This ignores equity, though one might argue in a land devoted to OPM debt is not a bad proxy. 
  3. Not all firms have released current financial reports. 
  4. Companies in certain sectors have borrowed for offshore business and investments. Examples are companies in the Investment Sector or in the Services Sector, e.g., Zain or Agility. Thus, there is some external "noise" in the numbers.
But, (a word used almost as often on SAM as "interesting"), we can get a reasonable macro idea or directional perspective from the data we have.

Before we do, some technical "directions" to make your navigation of the reports as useful and easy as possible.  This KSE link will take you to the English language drop down menu for Sectors and the list of companies comprising each Sector. Each company is shown and its Stock Symbol Number. Those SSN's are important (especially for those who don't read Arabic, the language of Al Joman's reports) because the data in Al Joman's report for each Sector is roughly in SSN order. A click of the language button on the right عربي will get you to the Arabic language page. And this link to Al Joman's report page.

Let's begin with an overview via Al Joman's 7 September report - their initial report meant as a macro summary.

All amounts are in KD millions.

Sector31 Mar 1030 Jun 09
Investment  5,747  5,937
Insurance       17       30
Real Estate  1,978  1,835
Industry  1,845  1,853
Services  3,916  4,347
Food     171     198
Parallel Market       65       33
TOTAL13,74014,233
 
As you look in the individual Sector reports, you'll notice that the total loans do not exactly agree to those shown in the above table. The differences are relatively minor and, to repeat myself (another common occurrence at SAM) can be ignored as we are looking for a macro perspective and general "directional" trends. 

For those, like AA, for whom no nit is to small to pick, here is an updated table. No, in an uncharacteristic move, I didn't refoot the detail to make sure these totals tally to the detail.

Sector31 Mar 1030 Jun 09
Investment   5,668  5,937
Insurance        17       30
Real Estate   1,963  1,838
Industry   1,845  1,853
Services   3,936  4,355
Food      171     198
Parallel Market        66       33
TOTAL13,66614,244

Since the first table adds to 13,739 for 31 March 2010, presumably due to rounding, the difference  between the original and adjusted tables is "off" by one.   
 

In the Investment Sector (51 firms) of the 5 largest borrowers 4 are distressed. KIPCO being the one "happy" firm. 

Data in KD million as of 31 March 2010. Total Loans at 1Q10 were KD5,668.

FirmAmount% Total Loans
Investment Dar   96317.0%
KIPCO   61910.9%
Global Investment House   58810.4%
Aayan Leasing    416  7.3%
Aref Investment   339  6.0%
TOTAL2,92551.6%

 

In the Insurance Sector (7 firms) only 3 firms have loans, خليج ت (Gulf Insurance) at KD10.8 and اهلية ت AlAhleia at KD5.3 account for 92.6% of the 1Q10 total. AlAhleia having reduced its borrowings by roughly KD11 from 2Q09. 

In the Real Estate Sector (36 firms) there is no similar dominance. The largest borrower is تمدين ع (Tamdeen) with KD219 or 11.1% of the total as of 1Q10. Al Joman has not reported on لؤلؤة (Lu'lu) Pearl Real Estate or صفاة عالمي (Safat Global). Safat last reported FYE08 when it had KD15. Pearl 3Q09 when it had KD41. If you're looking at the KSE Sector page, note there is no stock with symbol 407. Also Al Joman has جراند (Grand) out of order in its list – using the KSE Symbol Number order as the right one.

In the Industry Sector (28 firms), صناعات (National Industries Group or NI Group) dominates with KD969.7 or 52.6% at 1Q10. The next largest firm أنابيب (Kuwait Pipe Industries and Oil Services Company) has only KD163. 

In the Services Sector (59 firms) زين  (Zain) and أجيليتي (Agility) dominate accounting for roughly 48.6% of total loans at 1Q10 with KD1,556 and KD356 million respectively as compared to 2Q09 when they were 59.1% with KD2,164 and KD411 respectively.

In the Food Sector (6 firms) the aptly named اغذية "Food" (Americana) dominates with roughly 92.2% of 1Q10 loans with KD157.7. And as the slogan now goes "Americana – 100% Arabian".  And note that United Food Industries Group's symbol is almost the same as Americana's, except UFIG has the definite article "أل" in front, i.e., الغذائيةBe careful when placing that order with your broker!

In the Parallel Market (14 firms) صفاة عقار (Safat Real Estate) at KD19.8, ميدان (Maydan) at KD18.3 and عمار (Emaar) at KD11.2 account for 74.5% of 1Q10's total. Again note that the KSE list has gaps missing in the sequential order.  Symbols 2001, 2002, 2004, 2009, and 2016 are not used.

Thursday 27 May 2010

Lulu (Pearl Real Estate): 3Q09 Year To Date Losses of KD6.8 Million


Pearl released its 30 September 2009 figures today (announcement below in Arabic).  Total equity as of that date KD12.1 million.

The lengthy text following the numbers details comments made by the auditors regarding the validity of the going concern assumption.
  1. You'll note a figure of some US$727.7 million (KD207.9 million).  This relates to a derivatives transaction with a local bank.  
  2. It wasn't possible to determine the fair value of some KD9.1 million in assets.
  3. The rest deals with missing financial information from subsidiaries.
  4. That the Chula Vista Project (California) is being liquidated.  No interim report from the liquidator.
  5. That some of the data in the Company's report on subsidiaries is based on management prepared financials.
For those that don't know Pearl is a long established Kuwaiti real estate company founded some time in the mid to late 1970's.   Here's a link to its page at the KSE.  There's something not right (even for Kuwait) in the shareholding numbers which as given add to over 100%.  In any case the Government Debt Settlement Office appears to own somewhere over 40% and AlZumorrodah Holding over 50%.


[14:28:59]  بلغت (خسارة) (لؤلؤة) (6.7) مليون د.ك لل9 اشهر المنتهية فى 30-09-09 ‏
يعلن سوق الكويت للأوراق المالية أن مجلس ادارة شركة لؤلؤة الكويت العقارية ‏
ِ(لؤلؤة) قد اجتمع يوم الاربعاء الموافق 27-01-2010 ، واعتمد البيانات ‏
المالية المرحلية للشركة للفترات المنتهية فى 30-09-2009 ،وفقا لما يلي:‏
نتائج اعمال الشركة: ‏
الفترات الحالية:‏
البند                 فترة الثلاثة اشهر                 فترة التسعه اشهر
ِ                    المنتهية فى 30-09-09      المنتهية في 30-09-09 ‏
ِ الربح (د.ك)                (1.992.796)                (6.777.216)‏
ربحية السهم(فلس كويتي)     (7.92)                        (26.95)‏
اجمالي الموجودات المتداولة   ---                      21.728.238‏
اجمالي الموجودات             ---                      57.691.226‏
اجمالي المطلوبات المتداولة    ---                      41.681.875‏
اجمالي المطلوبات              ---                      45.561.718‏
اجمالي حقوق المساهمين       ---                      12.129.508‏
بلغ اجمالي الايرادات من التعاملات مع الاطراف ذات الصلة مبلغ 1.131.344 د.ك
بلغ اجمالي المصروفات من التعاملات مع الاطراف ذات الصلة مبلغ 0 د.ك ‏
الفترات المقارنة:‏
البند                 فترة الثلاثة اشهر                 فترة التسعة اشهر
ِ                    المنتهية فى 30-09-08      المنتهية في 30-09-08 ‏
ِ الربح (د.ك)            (6.984.020)               5.090.363‏
ربحية السهم(فلس كويتي)      (27.77)                    20.23‏
اجمالي الموجودات المتداولة   ---                      47.387.029‏
اجمالي الموجودات             ---                      85.095.325‏
اجمالي المطلوبات المتداولة    ---                      45.470.223‏
اجمالي المطلوبات              ---                      50.748.724‏
اجمالي حقوق المساهمين       ---                      34.346.601‏
علما بان تقرير مراقبي الحسابات يحتوي على اساس النتيجة المتحفظة التالية:‏
ِ1-كما هو مبين فى ايضاح رقم (18) حول المعلومات المالية المرحلية المجمعة ‏
المرفقة قامت شركة لؤلؤة الكويت العقارية بالدخول فى معاملات مشتقات مالية ‏
مع احد البنوك المحلية،وقد قام البنك بتقييد مبلغ 727,668,040 دولار امريكي ‏
على حسابات الشركة ،ان اسس احتساب هذا المبلغ غير متاحة لنا وحتى تاريخ ‏
اصدار المعلومات المالية المرحلية المجمعة المرفقة لم يتم التوصل الى حل ‏
لهذا الامر .ولا يمكن حاليا تحديد نتيجة هذا الامر .‏
ِ2- ولم يكن من الممكن تحديد القيمة العادلة ‏لاستثمارات متاحة للبيع بمبلغ ‏
ِ9.053.115 د.ك، ‏لعدم توافر قيمة عادلة ‏كما فى تاريخ بيان المركز ‏
المالي المرحلي المجمع المكثف .‏
ِ3- لم ‏تقم شركة لؤلؤة الكويت العقارية - ش.م.ك (مقفلة) باحتساب حصتها من
نتائج اعمال شركاتها التابعة (بيرل اوف اتلانتا،بيرل اوف فرانس)‏
ِ(سبورتنج ريل استيت)‏ (يونيفيرسال يونايتد رييل استييت كونسولتانسي)‏
ِ(سكول رييل استييت)، و ذلك لعدم توفر معلومات ماليه مرحلية ‏
او بيانات مالية معدة من قبل الادارة .‏
ِ4- لقد تم تقديم طلب تصفية الشركة التابعة (شولا فيستا كابيتال)، وحتى تاريخ
اصدار المعلومات المالية المرحلية المجمعة لم يتم تزويدنا بتقرير المصفي.‏
ِ5- قامت ‏ شركة لؤلؤة الكويت العقارية - ش.م.ك (مقفلة)‏ وشركاتها التابعة ‏
باحتساب حصتها من نتائج اعمال شركاتها التابعة غير مجمعة، شركة نور ‏
لادارة المشاريع - ذ.م.م. وشركة لؤلؤة التعمير للتجارة العامة والمقاولات
ِ- ذ.م.م. بناءا على بيانات مالية معدة من قبل الادارة .‏
تأكيد على امر :‏
نود ان نشير الى الايضاح رقم 2(أ) حول المعلومات المالية المرحلية ‏
المجمعة المرفقة ، والذي يوضح قدرة شركة لؤلؤة الكويت العقارية ‏
ش.م.ك (مقفلة) على الاستمرارية .

Thursday 1 April 2010

Kuwait Stock Exchange Suspends Trading in 15 Additional Companies For Failure to Provide Financials


At 8:48 AM Kuwaiti time the KSE issued the below list of companies whose trading was suspended due to failure to provide financial statements for the period ending 31 December 2009.

While 21 companies appear in the list, 6 of them were previously suspended for failure to provide earlier financial statements.   That means an additional 15 companies have been suspended.

If and when these companies provide the missing financials to the KSE, their trading will be resumed.

In order the companies are:
  1. AlAhlia Holding
  2. AlBayt/Securities House
  3. Industrial and Financial Investments Co.
  4. International Investments Group
  5. Aref Investment Group
  6. The Investment Dar (previously suspended)
  7. Aayan Leasing and Investment
  8. Gulfinvest International
  9. KFIC (Kuwait Company for Financing and Investment)
  10. International Leasing and Investment (previously suspended)
  11. National Real Estate Co (NREC)
  12. Pearl Real Estate (Lu'lu)  (previously suspended)
  13. Investors Group 
  14. Grand Real Estate  
  15. Safat Global (previously suspended)
  16. Agility
  17. The Sultan Center
  18. Saftec
  19. Villa Moda (previously suspended)
  20. Shabka Holding Company (previously suspended)
  21. UFIG (United Food Industries Group)
Using KSE definitions of the main economic sector of activity as per the company's stated purpose, of the suspended companies:
  1. 10 are from the Investment Company Sector
  2.   5 from the Real Estate Sector.
Though it's a reasonably good assumption that the problems at the other companies - save Agility - are probably largely related to securities or real estate investments.

[8:48:12]  ِ.وقف التداول باسهم شركات اعتبارا من اليوم ‏
يعلن سوق الكويت للاوراق المالية انه قد تم وقف التداول باسهم 21 شركة ‏
وهى الشركات التالية :‏
الشركة الاهلية القابضة (اهلية) ‏
شركة بيت الاوراق المالية (البيت)‏
شركة الاستثمارات الصناعية (ا صناعية) ‏
المجموعة الدولية للاستثمار(المجموعة د) ‏
شركة مجموعة عارف الاستثمارية ‏(عارف)‏
شركة الدار للاستثمار (الدار)(موقوفة) ‏
شركة اعيان للاجارة والاستثمار (اعيان) ‏
الشركة الخليجية الدولية للاستثمار (غلف انفست) ‏
الشركة الكويتية للتمويل والاستثمار (كفيك)‏
الشركة الدولية للاجارة والاستثمار(د للاجارة) (موقوفة) ‏
الشركة الوطنية العقارية (وطنية) ‏
شركة لؤلؤة الكويت العقارية (لؤلؤة) (موقوفة) ‏
شركة مجموعة المستثمرون القابضة (المستثمرون)‏
شركة المشروعات الكبرى العقارية (جراند)‏
شركة الصفاة العالمية القابضة ‏(صفاة عالمي)(موقوفة) ‏
شركة المخازن العمومية (اجيليتي) ‏
شركة مركز سلطان للمواد الغذائية (م سلطان) ‏
شركة الصفاة تك القابضة (صافتك)‏
شركة فيلا مودا لايف ستايل (فيلا مودا) (موقوفة) ‏
شركة الشبكة القابضة (الشبكة)(موقوفة  ) ‏
شركة المجموعة المتحدة للصناعات الغذائية (الغذائية) ‏
اعتبارا من اليوم الخميس الموافق 01-04-2010 ،وذلك لعدم تقديم ‏
البيانات المالية السنوية للسنة المالية المنتهية فى 31-12-2009 ،فى ‏
الموعد المحدد لذلك.‏

Wednesday 10 February 2010

GM of Lu'lu (Pearl) Real Estate Kuwait Resigns


Lu'lu Real Estate announced the resignation of its GM, Mr. Ahmad Muhammad Ahmad AlAjlan.  No word on replacement.

Below is the KSE announcement.

[10:12:0]  ِ.استقالة مدير عام شركة لؤلؤة الكويت العقارية
يعلن سوق الكويت للأوراق المالية بأن شركة لؤلؤة الكويت
العقارية افادته بأن مجلس ادارة الشركة وافق بتاريخ 9-2-2010‏
على استقالة السيد احمد محمد احمد العجلان مدير عام الشركة.‏

Sunday 7 February 2010

Lu'lu (Pearl) Real Estate Kuwait Delaying Resumption of Trading Pending Determination of Gulf Bank Legal Position on Derviatives Trades


AlQabas quotes informed sources that Lu'lu Real Estate Company is delaying the resumption of trading in its shares pending determination of Gulf Bank Kuwait's legal position regarding those firms who traded derivatives through it and caused the major losses (which led to a change in the Board at Gulf Bank and the KIA taking a significant stake).  And that Lu'lu (=Pearl) is apparently among this group.  The report states that Lu'lu is finalizing its 30 September 2009 financials (a pre-requisite for the KSE allowing it to trade again), but doesn't want to restart trading less Gulf Bank take legal action against it and cause its shareholders losses.

Some thoughts:
  1. As I recall the story about Gulf Bank and the derivatives, these were largely foreign currency derivatives.  Many involving the Euro.  With allegations (not yet legally proven) that a good number of them were for related parties.
  2. And that Gulf Bank's losses were caused when customers failed to settle their obligations.
  3. It would seem to me that if Pearl (Lu'lu) were one of those customers, it might be reasonable for it to expect that Gulf Bank would expect it to settle up.  Just as if Pearl had a loan from GB, it wouldn't strain belief to expect that GB would want its money plus interest back.
  4. You might be thinking as I initially did that Lu'lu's desire to pretend there wasn't a loss by delaying trading was a bit silly.   Losses don't occur when we open our eyes.  Or go away when we close them.  But, as long as no trading has occurred many parties will be valuing their Pearl stock at its last traded price.  And that could be very comforting for banks holding it as collateral for loans  who are adverse to booking provisions, for the borrowers themselves and for others ho don't want to recognize impairments in their own financials. 
  5. As to resumption of trading, last time I checked (Thursday), Lu'lu owed the KSE financials for 30 June 2009 as well as 30 September 2009.  And shortly it will be past due on the year end financials.  It's intriguing to speculate if Lu'lu's delays are strategic in the hope that something good will happen before it resumes trading.
  6. Finally, Pearl does have foreign projects at least one in Morocco and a hotel somewhere in the Eurozone - Germany or Austria.  So there would perhaps be some reason they might need an FX hedge.  One hopes that it was not among those many Kuwaiti firms who over the past few years found their core businesses less interesting than punting in the Kuwaiti Stock Market or making even wiser financial investments in markets on foreign shores.

Thursday 31 December 2009

Kuwait Stock Exchange Suspended Companies - And Then There Were Six

As we close out the last day of 2009, here's the final list of companies suspended from trading by the KSE:
  1. Lu'lu Real Estate Compay (Pearl Real Estate) - شركة لؤلؤة الكويت العقاريه (لؤلؤة)‏
  2. Safat Global Holding - شركة الصفاة العالمية القابضة
  3. Shabka Holding - شركة الشبكة القابضة
  4. The Investment Dar - شركة الدار للاستثمار
  5. International Leasing and Investment -الشركة الدولية للاجارة والاستثمار
  6. Villa Moda - شركة فيلا مودا لايف ستايل
As before they are suspended for failure to provide financials.  With the use of  Western numbers in the press release, you can see which reports are missing. Safat and Shabka share the dubious distinction of also being suspended for failure to pay their 2009-2010 listing fees.

Arabic text of the KSE official announcement below.

[7:53:37]  ِ.الشركات الموقوفه عن التداول
يعلن سوق الكويت للأوراق الماليه بأنه تم وقف تداول اسهم بعض الشركات وفقا
لما يلي :-‏
اولا: الشركات التي لم تقدم بيانات 30-06-2009 و30-09-2009 :- ‏
شركة لؤلؤة الكويت العقاريه (لؤلؤة)‏
ثانيا:الشركات التي لم تقدم بيانات 31-03-2009 و30-06-2009 و30-09-2009:- ‏
شركة الصفاة العالمية القابضة(صفاة عالمي) ‏
شركة الشبكة القابضة (الشبكة) ‏
ثالثا: الشركات التي لم تقدم بيانات 31-12-2008 و31-03-2009 و30-06-2009 ‏
و30-09-2009 :- ‏
شركة الدار للاستثمار(الدار)‏
الشركة الدولية للاجارة والاستثمار (د للاجارة) ‏
شركة فيلا مودا لايف ستايل(فيلا مودا) ‏
رابعا: الشركات التي لم تسدد رسوم الاشتراك السنوي لعام 2009-2010 :-‏
ِ شركة الصفاة العالميه القابضه (صفاة عالمي) ‏
ِ شركة الشبكه القابضه (الشبكة) ‏

Saturday 21 November 2009

Kuwait Stock Exchange - 9 Suspended Companies - Length of Delays in Financials

You'll recall that earlier the KSE suspended 13 companies.  Here's the previous post.

Four have provided their financials:
  1. Aref Investment Group (Investment Company) - See post on Aref's financials here.
  2. Aayan Leasing and Investment Company (Investment Company)
  3. Al-Madar Finance and Investment Company (Investment Company)
  4. Safwan Trading and Contracting (Services Company)
And here for the earnings of Aayan, Al-Madar and Safwan.

Looking at a  KSE announcement from 19 November, we can analyze the remaining companies by the length of delay in their financials. (You can find the text - Arabic only - as described in the previous post above.  It's the 7:59:38 post on the 19th).

First, those only past due for their 30 September 2009 financials:
  1. Industrial Investments Company (Investment Company)
  2. Salbookh Trading Company (Industrial Company)
  3. National Ranges Company (Services Company) a/k/a "AlMadayen"
Second, those past due for 30 June 2009 and 30 September 2009 financials:
  1. Pearl of Kuwait Real Estate Company (Real Estate)  a/k/a Lu'lu
Third, for 31 March, 30 June and 30 September 2009:
  1. Safat Global Holding (Real Estate)
  2. Network Holding Company (Services Company)  a/k/a "Shabka".  Shabka is also suspended for failure to pay its listing fees on the KSE for 2009-2010.
Fourth, for 31 December 2008 and 31 March, 30 June and 30 September 2009:
  1. The Investment Dar (Investment Company)
  2. International Leasing and Investment Company (Investment Company)
  3. Villa Moda Life Style (Services Company)
Company type corresponds to KSE classification.

Clearly, the longer a firm's financials are not provided the stronger the sign of financial distress.  As mentioned before, banks and investment companies' financials must be approved by the Central Bank of Kuwait.  When there is a delay in release of a financial report for one of these parties, it often signals that the CBK and the company are having a disagreement.  That is not a sign of financial strength as the CBK does not frivolously hold up finalization of interim or annual reports.

Monday 16 November 2009

Kuwait Stock Exchange Suspends Trading of 13 Companies (6 Previously Suspended)

Last week the KSE warned 23 companies that failure to provide their 3Q09 financials to the Exchange  by 8:30 AM this morning would result in suspension of their trading.  See earlier Suq Al Mal post on that topic.

This morning at 8:44 AM local time, the KSE announced the suspension of trading of 13 companies.

As noted in my earlier post of the 23 companies so warned, 6 had already been suspended for failure to provide financials for previous periods.

The 13 suspended today include 6 previously suspended, so the incremental number of suspensions (in this announcement) is 7.  The KSE already suspended IFA and Watha'iq last Thursday.

New suspended companies:
  1. Industrial Investments Company (Investment Company)
  2. Aref Investment Group (Investment Company)
  3. Aayan Leasing and Investment Company (Investment Company)
  4. Al-Madar Finance and Investment Company (Investment Company)
  5. Salbookh Trading Company (Industrial Company)
  6. Safwan Trading and Contracting (Services Company)
  7. National Ranges Company (Services Company) a/k/a "AlMadayen"
Previously suspended still suspended.
  1. The Investment Dar (Investment Company)
  2. International Leasing and Investment Company (Investment Company)
  3. Pearl of Kuwait Real Estate Company (Real Estate)  a/k/a Lu'lu
  4. Safat Global Holding (Real Estate)
  5. Villa Moda Life Style (Services Company)
  6. Network Holding Company (Services Company)  a/k/a "Shabka"
Company type corresponds to KSE classification.