The Motley Fool

Falling Knife of the Week: Blumont Group Limited

The saga at Blumont Group (SGX: A33) continues. It has dropped 17% so far this week, closing at S$0.048 on Thursday.

In Oct last year, Blumont Group, together with Asiasons Capital Limited (SGX: 5ET) and LionGold Corp Limited (SGX: A78), plunged dramatically and had around $5.2 billion in combined market capitalisation wiped off in a day.

According to its website, Blumont Group has three core business segments: investment holdings; sterilization services; and property investments. Its investment holding arm invests in financial instruments like shares, transferable securities, warrants and debentures.

On 2 April 2014, the firm announced that G1 Investments Private Limited, a wholly-owned subsidiary of the company, had received a notice from the Commercial Affairs Department (CAD) of the Singapore Police Force for G1 Investments’ assistance with the CAD’s investigations into an offence under the Securities and Futures Act (SFA).

Access to all corporate electronic data, information technology equipment and data storage devices belonging to Mr Neo Kim Hock, the Executive Chairman of the Board, and Mr James Hong Gee Ho, an Executive Director of the company, were requested by CAD.

Mr Hong has also been sought to assist the CAD in its investigations into a possible infringement under the SFA. Mr Hong has indicated that he will cooperate fully with CAD in its investigations.

The company went on to say that its business and operations are not affected by the investigations and will continue as normal.

Separately, it was announced that Asiasons Capital and LionGold Corp are also being probed by CAD but Blumont fell the most among the three stocks. Asiasons Capital is down 11% while LionGold Corp has slumped 14% as of Thursday.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.