The Ups and Downs of Harvest Court

Recently, many speculators were rattled with the news that the 28-year-old son of our PM, Nazifuddin Najib, resigned from the board of Harvest Court Industries Bhd as independent director barely 25 days after he was appointed to the board on October 28th this year. Currently, he still owns 3.98 million Harvest Court shares.

Nazifuddin is the chairman of 1Green Enviro Sdn Bhd, Magna Healthcare Sdn Bhd, Cahaya Pedoman Sdn Bhd, Tribus Sdn Bhd and Sagajuta (Sabah) Sdn Bhd. He also the director of Kingtime International Ltd and Dynac Sdn Bhd.

According to The Sun:

Shares in designated counter Harvest Court Industries Bhd nose-dived yesterday in an apparent reaction to the resignation of former director Mohd Nazifuddin Mohd Najib on Monday, barely a month after his entry helped spark a massive surge in the stock.


At the close, Harvest Court’s share price tumbled 43 sen, or 31% to 97 sen on volume of 251,700 shares. Its warrants declined 30% to 73 sen.


Harvest Court attracted huge speculative interest earlier this month after Nazifuddin and business partner Datuk Raymond Chan were made directors of the company on Oct 28.


Investors were apparently punting on hopes that Nazifuddin, the 28-year-old son of Prime Minister Datuk Seri Najib Abdul Razak, would open up new opportunities for the door maker. Within days of his appointment, shares in Harvest Court had soared from 40 sen to as high as RM2.13 on Nov 14.


The massive surge immediately drawn close scrutiny from the investing public, as well as the stock market regulator.


Bursa Malaysia Securities flagged Harvest Court as a designated counter from Nov 15 in a bid to limit what was viewed as excessive speculative activities in the stock.


Nazifuddin’s decision to step down may help to take some heat off Harvest Court.


Nazifuddin, who owns 2.2% in Harvest Court, and Chan told a newspaper yesterday that they would remain as shareholders in Harvest Court. Chan controls 15.7% of Harvest Court.


The trading curb, which effectively requires investors to pay upfront to purchase the stock, continue to be in force. There was no indication how long this will remain.

The Malaysian Insider also carried a report on this topic HERE.

THIS WEBSITE gives a good summary of all the news on this topic.

Flashback news in case you missed this:

On November 14th, Malaysiakini carried a report by Wong Teck Chi AT THIS LINK:

The price of shares in Harvest Court Industries Bhd, a previously little-known timber products company, rose to a 11-year high after the prime minister’s second son, Mohd Nazifuddin Najib, was appointed to its board of directors last month.


The share price hit RM2.14 about 4pm today, or 2,575 percent more than the 8 sen registered a month ago.


The price closed at RM2.13 later, having recorded a surge of 48 sen, or up by 29 percent since yesterday.


According to a Nov 8 report in The Edge Financial Daily, Nazifuddin and his business partner Raymond Chan were appointed directors of Harvest Court Industries on Oct 28.


Nazifuddin (left) was also said to have bought two to three million shares in the company - up to 1.7 percent of the total - on Nov 4, while Chan reportedly acquired a 13.83 percent stake.


Since then, the share price has surpassed the RM1 level to stay in the top volume list for many days.


Nazifuddin, 28, is the second son of Najib Abdul Razak and his first wife Tengku Puteri Zainah Tengku Eskandar. The couple divorced in 1987, following which Najib married Rosmah Mansor.


Chan, a businessman who is active in Sabah, owns substantial shares in Sagajuta (Sabah) Sdn Bhd, which developed the 1Borneo mall in Kota Kinabalu.


Nazifuddin is chairperson of Sagajuta.


‘Financial problems’
It has been reported that Chan may inject a recycling company, 1Green Enviro Sdn Bhd into Harvest Court, which has struggled with weak financial performance over the last few years.

Harvest Court was reportedly listed by Bursa Malaysia as a PN17 company until December 2009. PN17 refers to companies facing financial problems.


The company posted a net loss of RM2.7 million in 2010, compared with a profit of RM12.2 million a year earlier.


Its share had been hovering around 6-12 sen for several years until the impressive gains recorded over the past month.


Based in Port Klang, the company is involved in manufacturing timber products.

So the question that remains is: How and Why can so much happen in less than one month?

And one wonders how much did some people make or lose! Food for thought!

- masterwordsmith