Hot Stock: IRCB falls 6.5% after recent surge

Hot Stock: IRCB falls 6.5% after recent surge
Written by Shalini Kumar of theedgemalaysia.com
Thursday, 14 February 2013 12:16

KUALA LUMPUR (Feb 14): Shares of Integrated Rubber Corporation Bhd (IRCB) shares fell this morning, probably due to profit taking after its recent incessant climb.

At 10.41 am, IRCB was trading at 21.5 sen, down 1.5 sen or 6.5% with 5.42 million shares done. Having hit a high of 23.5 sen earlier, it was amongst the top active counters across the exchange.

“When investors are excited about the prospects of a company, they will chase after the stock. Then once the hype is over, they will take back the profits. But, this is a normal fluctuation,” said Goh Kay Chong, a senior remisier at SJ Securities.

Yesterday, IRCB share price hit a 22-month high of 23 sen, following news that the government’s Corporate Debt Restructuring Committee (CDRC) had agreed to help in its debt structure plan, and also that a new substantial shareholder had acquired more shares in the open market.

On Feb 8, IRCB told Bursa Malaysia that the CDRC had approved its application for help to mediate with its banks over defaulted loans totalling RM16.89 million.
The company also told Bursa that its substantial shareholder Lau Joo Yong had acquired a further 4.13 million shares in the company, increasing his stake to 7.57% on Jan 31, following a purchase on Jan 29.

“The latest developments in the company are injecting some optimism. If a substantial shareholder is picking up IRCB shares,it means that he has confidence in the future of this PN17 company,” said Goh.

IRCB made a cumulative net loss of RM18 million in the nine months ended Oct 31, 2012, compared to a net loss of RM17.93 million in the previous year.