StockTalk(7.14): HPL director Ong Beng Seng arrested in CPIB probe related to transport minister Iswaran

Moomoo SGOP : Do you believe that Ong Beng Seng's arrest will have a long-term or potentially catastrophic impact on HPL?
Join us and share your thoughts on today's topic. Please leave a comment below to share your opinion with us!

ZnWC : I am not a holder of HPL stock. The share price has already been affected by the arrest of HPL's MD due to retail investors started panic selling. It is natural for anyone who hold HPL's share to feel anxious.

My investment decision largely is based on the fundamental of the company and the corporate governance is part of it. The long term catastrophic effect will be determined if there's any criminal or malpractice in the running of the company. At this moment, it is too early to tell.

No_Horse_Run_4896 : Not everyone can drink coffee at CPIB, they won't prepare the coffee before hand if they are not confident something is wrong somewhere

toomanyscammers : hmm. imo, how impactful ong Beng seng's arrest / case will have on HPL's stock price will depend largely on how closely the public associates ong with HPL. if ong can be distanced from HPL and seen as a separate entity that is different from the stock or company, then, I feel that HPL can still thrive even if its main head is charged. but, however, if the public cannot separate the two, and sees OBS as a direct representation of the co and vice versa, then, I feel that the share price will be negatively impacted for a reasonable amount of time. at least more than a year to recover perhaps. if ongs successor is also from the ong family, then  shareholders' impression won't be much changed I feel and it'll be difficult to renew their confidence in the stock I feel.

imo, realistically wise, I feel the impact will be medium-term and that yes, although the reputation of hpl will be affected, I feel that if a brand new management totally unlinked with OBS steps up, this can distance hpl from obs and renew shareholders' confidence in hpl and revive shares again. hence, I feel that the impact is more medium term than long term. furthermore, the properties under hpl are still good properties like intercontinental etc. so with a continuous solid performance, investors may still be keen in them. however, there is a risk of it losing revenue due to lost business deals bcos of the corruption matter

Chirp : I'm not a holder.  but any news as such will surely affect the share price.  in the end,  shareholders suffer

Kopikarp : Too early to tell.

In instances where a high-profile businessperson is linked to a government official, as is the case with Ong Beng Seng and Minister S Iswaran, the perception of seriousness escalates, as it often indicates potential corruption or other illicit dealings at high levels. This can certainly have a more severe immediate impact on the company's share price due to the shock factor, and it can also heighten scrutiny from regulators, investors, and the public.

Depending on the specific nature and outcome of the charges, the long-term implications can be more serious if there's evidence of systemic corruption or malpractice within the organization. For example, if the investigation reveals improper business conduct on the part of Ong and it is deeply entwined with HPL's operations, this could significantly disrupt the company's operations, lead to legal repercussions, and harm the company's reputation.

However, it's important to remember that at this stage, the exact allegations and their potential implications for HPL are not yet clear. Even if a minister is implicated, the gravity of the charges, the outcome of the investigations, the response of the company and its management, as well as the public's reaction, will play key roles in determining the long-term impact on HPL.

toomanyscammers Kopikarp: I guess it'll depend on hpl's biz ultimately. if they can still attract high users to their biz like the hotels and keep shareholders confidence. if footfall to their hotels falls bcos of obs, and impacts profits significantly, shareholders confidence will drop too. but if hpl can still prove a profitable biz, shareholders may still hodl

Vicloo Kopikarp: for non shareholders, is OK to say too early to tell. for existing shareholders, if wait until all implications clear it might be too late for them to run lol

toomanyscammers Vicloo: lols. can see if bookings to Hilton etc all still healthy. if biz start boycotting their hotels then maybe got things to consider le