Tuesday, 31 January 2007: Practitioners and investors feel jittery at the announcement yesterday by Al-Baha's Director General Al-Ghamdi rescheduling of the company's board meeting due to irregularity associated with absenteeism. Al-Baha is among 23 joint-stock companies projected to face financial difficulties in 2007. Sa'eed Saad Al-Ghamdi, Al-Baha's director general told the Saudi Gazette in a telephone interview Saturday that "the absent board members called at the nick of time and that made the rescheduling almost impossible. Two of them were abroad and three could not make due to flight scheduling."
Ministry of Commerce Joint-stock companies board meetings guidelines require a 75 percent members' attendance for the first board meeting call and 50 percent for the second to consider a joint-stock board meeting valid. Al-Ghamdi went on to state that some board members expressed intention not to renew board membership and probably their absence is a re-affirmation of lack of interest in board membership. Al-Ghamdi declined to reveal the absent board members' names.
According to Al-Baha by-laws a call for make-up meeting should go out in two weeks and a representative of MCI should attend as an "observer". Al-Ghamdi asserted MCI is aware of some members' notices of withdrawal, thus a new board will be voted in. He, furthermore, revealed his intention to stay on board as D.G saying the new board would have plenty of "future plans to evaluate and act upon."
Al-Baha Investment and Development Co. was established in 1992 with objectives to: (a) set up different types of industrial projects, own and reclaim agricultural land for establishing new projects for producing food and animal products and (c) administer, invest and maintain tourism establishments. Al-Baha board chairman is Mahfouz A. Al-Azuoman; current board members are: M. Kahatani, M. Krat, Abdul Hakeem Sahaab, Ahmed Sahaab, Ahmed Aglaa, Abdul Rahman Al-Ghamdi, Ali El-Agma and Ali El-Aas.
As of end Feb.28, 2006, Al-Baha's total assets stood at about SR107.8 million, total liabilities SR19.9 million, shareholders' equity at SR91.8 million, authorized capital at SR150 with paid up portion of SR112.5 million, its share was trading at SR45.6 and closed Monday at about SR25.
On a different front, Prince Alwaleed's announcement Sunday of his "four" blue chips did not help reverse their stagnant prices; the change in their closing prices yesterday was as follows: SAMBA (+0.24 percent), Savola (-4.55 percent), Industrialization (-7.69 percent) and SRMG (+0.44 percent).
The rest of the week
TASI is projected to fluctuate around 6880 pct pts; a strong support point at (6890) projected, for now, as a "steady floor" for non-daily traders. The lower boundary is yet unclear; but, assuming average liquidity observed persists; TASI could comfortably go down as low as (6840) pct pts.
Blue chips in: Banks, Cement, oil-based securities and telecoms are projected to close above week- start prices but to stay far below daily potential variation, at above the projected steady state with gains of (0.75 percent-2.25 percent) by week-end.
By Omar S Bagour
© The Saudi Gazette 2007
