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Tuesday, January 22, 2013

Hot Stock IRCB suffers limited fall despite bad news ----------Written by Shalini Kumar of

Hot Stock IRCB suffers limited fall despite bad news
Business & Markets 2013
Written by Shalini Kumar of
Wednesday, 23 January 2013 12:43

KUALA LUMPUR (Jan 23): INTEGRATED RUBBER CORPORATION [](IRCB) Bhd, which announced yesterday that it is facing possible winding up procedures if it fails to pay back its RM16.89 million debts to Maybank Bhd, did not experience a huge sell-down.

This is despite the company saying in its statement: “There will be a significant impact on the financials and operations of IRCB Group should the winding up proceedings be taken upon the company.”

At 11.37 am, it fell by half a sen or 3.3% to 14.5 sen. Listed as one of the most active stocks in early trades, it hit a high of 15 sen and a low of 13.5 sen before settling at 14.5 sen, with 5.98 million shares done.

According to Goh Kay Chong, a senior dealer with SJ Securities, IRCB’s recent appointment of new director, Cheang Phoy Kean, could be the reason that the share price was not affected as badly as thought.

Cheang, 59, was appointed as managing director of IRCB, following the resignation of major shareholder Tan Keng Beng, after his family sold a 10.98% stake to Cheang via an off-market deal.

“The news about the recent change is probably the reason for shareholders to have some hope. It’s still a PN17 company, but this means new funds are coming in and so the company is going to be in a better position to face the situation,” he said.

Goh added, “Of course, the person (entering the company) should have already known the position of the company, so they probably have the funds to settle the debts.”

IRCB also announced earlier this month the appointments of Cheang’s son, Sean Kar Seng Cheang, as an executive director and Lim Boon Huat as a non-executive director.

Bursa Malaysia filings show that Cheang Phoy Kean emerged as a substantial shareholder in IRCB on Jan 4, following his acquisition of 65 million shares at 15 sen per share. The off-market deal was worth RM9.75 million.

Friday, January 18, 2013

Hot Stock Scomi shares rise on possible vote for IJM entry

Hot Stock Scomi shares rise on possible vote for IJM entry
Business & Markets 2013
Written by Shalini Kumar of
Friday, 18 January 2013 12:49

KUALA LUMPUR (Jan 18): SCOMI GROUP BHD []’s shares rose in morning trade following a report that some shareholders could be voting for IJM Corp to come in as its biggest shareholder, having previously opposed the move.

Some previous reports indicated that Scomi’s major shareholders wereheaded for a split over IJM’s strategy to acquire a stake of around 25% in the group.

"This should be good news for the company. IJM is a good company even though it is not in the same line. It also means new funds will be coming into the company. I think the resolution should pass at the
meeting,” said Goh Kay Chong, a senior dealer at SJ Securities.

At 12.16pm, Scomi’s shares were trading at 37.5 sen, up half a sen or 1.4%, on 6.88 million shares done, after hitting the most active list. Earlier, it had hit a high of 38 sen.

Scomi’s extraordinary general meeting set for Jan 31 could see the sole resolution of issuing RM110 million worth of convertible redeemable secured bonds to IJM being passed.

IJM first surfaced as a stakeholder in Scomi in September 2012, when it subscribed for a private placement at 33 sen per share, or a total of RM33 million.

Scomi was in debt at the time, since its RM200 million debt papers had been downgraded after a delay in an asset sale in Nigeria that was supposed to have netted it RM57.6 million.

Sunday, January 13, 2013

Hot stock Patimas up on “rescue”, new business reports

Hot stock Patimas up on “rescue”, new business reports
Business & Markets 2013
Written by Kamarul Anwar of
Monday, 14 January 2013 11:54

KUALA LUMPUR (Jan 14): PATIMAS COMPUTERS BHD [] became the most actively-traded stock in morning trades amid reports that a prominent figure may rescue this PN17 company and that it is in
preliminary talks to get new business.

As at 11:22 am today, Patimas rose one sen or 6.9% to 15.5 sen on volume of some 68 million shares, after hitting a high of 16 sen earlier.

Quoting Datuk Seri Abdul Azim Zabidi, a newspaper report today said this prominent politician-businessman indicated his intention to “rescue” the company and raise his stake.

For the third quarter to September 2012, Patimas incurred net loss of RM8.57 million. Its net value per share was -3 sen (negative 3 sen).

Azim, who has been in the limelight recently for his plan of a hostile takeover of Tiger Synergy Bhd, purchased 45 million shares of Patimas, or 5.44% of the company’s stake via his company Syawaras Sdn Bhd on January 11, according to Bursa Malaysia announcement.

Azmi was also quoted by the newspaper as saying he wants to meet the Patimas board and has no hostile intention on the company, and he had been negotiating with several outside parties on how to rescue Patimas.

"If the company’s management agrees to our proposal, I will consider increasing my stake in Patimas," Abdul Azim said.

Shares of Patimas began to surge on January 10 from 6.5 sen.

SJ Securities Sdn Bhd senior remisier Goh Kay Chong said some parties are now riding on this development to stir up interest and create activity in Patimas’ share.

He said a local Chinese daily reported on Saturday that Patimas is in preliminary talks with another company to provide 4G services but this plan might not materialise.

“Nothing is confirmed for now. It is highly speculative at this juncture,” he told in a telephone interview.

Wednesday, January 9, 2013

Trade surge in Singapore penny stocks excites Malaysia ----------- Written by Ho Wah Foon of

Trade surge in Singapore penny stocks excites Malaysia
Business & Markets 2013
Written by Ho Wah Foon of
Thursday, 10 January 2013 09:28

KUALA LUMPUR: Trading in Malaysia’s speculative penny stocks is expected to be energised by the current high turnover in super-penny stocks on the Singapore Exchange (SGX), local senior dealers said.

The Singapore factor, plus optimism fuelled by positive news from the US fiscal cliff talks, European macro-economic crisis, as well as encouraging economic data from the US and China, are expected to lure greater trading interest in local penny stocks this month, they added.

“We are watching Singapore. Last Friday, its volume suddenly jumped to seven billion shares. We have alerted our own remisiers to prepare for the contagion effect,” said Sam Ng, president of the Remisiers Association of Malaysia.

In December 2012, the average daily trading volume on the SGX was about 2.4 billion shares, its web data shows.

“The super bull in Singapore in super-penny stocks will have an impact on us. And a Chinese New Year (CNY) rally will definitely follow suit,” added Ng, also senior dealer at Interpacific Securities Sdn Bhd.

Goh Kay Chong, a senior dealer at SJ Securities Sdn Bhd, said the currenthigher trading volume is also due to the January effect, apart from the Singapore factor.

“This traditional feel-good factor in January is also luring retail players back to the market. With bonus payments received at around this time of the year, people feel rich and they are finding avenues to invest their money,” he said.

Last Friday, SGX saw its trading volume surge to a feverish pitch, hitting a recent high of 7.05 billion shares valued at S$1.36 billion (RM3.36 billion). The top 10 actives were dominated by penny stocks accounting for 3.58 billion units.

mDR Ltd, which distributes telecommunications devices and provides mobile related services, netted 1.03 billion shares when it closed at 1.8 Singapore cent last Friday.

This was followed by Elektromotive Group Ltd, which closed 0.1 cent higher at 0.4 cent on trades of 518.81 million shares;

while ICP Ltd ended flat at 0.4 cent on 433.11 million shares.
SGX’s strong trading volume, led by penny stocks, persisted this week. On Monday, trades at SGX totalled over 6.5 billion

shares while on Tuesday it was over 5.7 billion. Yesterday, 4.4 billion shares were traded.
Indeed, the contagion effect on Malaysia was already felt last Friday in the local market. Total trades rose to 1.25 billion shares, from 1.12 billion last Thursday. This volume of over one billion has continued into this week so far. Yesterday, the volume totalled 1.1 billion.

Ng noted there was higher retail interest in the local stock market last Friday, taking after Singapore.
According to Albert Fong, president of Society of Remisiers in Singapore, retail investment and contra play, as well as Internet trading have been responsible for the high trades in penny stocks in the republic.

“The fear factor that dominated the whole of last year has dissipated. The removal of three main concerns over US fiscal cliff,

European crisis and China economy has cleared the way for more optimism,” the senior remisier in Singapore told The Edge Financial Daily

Sunday, January 6, 2013

Hot Stock Permaju shares ride on news it may win timber concession -----------Written by Shalini Kumar of

Hot Stock Permaju shares ride on news it may win timber concession
Business & Markets 2013

Written by Shalini Kumar of
Monday, 07 January 2013 11:22

KUALA LUMPUR (Jan 7): Permaju Holdings Bhd shares rose in active trades today after news that it may be awarded about 809 hectares of timber concession land in Sabah and Sarawak.

“It’s speculative play that is driven by the news. People could have known about this earlier and bought shares and now that the news has broken, they are selling, while others continue to buy,” said Goh Kay Chong, a senior dealer from SJ Securities.

“This could also be cyclical play, or even pre-election play….[Permaju] is
the darling of the speculators.” he added.

At 10:30am, Permaju was trading at 50 sen, up 1 sen or 2%, on volume of 14.36 million. Hitting a high of 52 sen earlier, it was the third most active counter on the exchange.

According to a news report in a local paper, the outcome of the land concession award will be made known by this month.

The potential concession will make Permaju the single largest land concession owner in Sabah, said the report.

Under the terms of the contract, Permaju will clear the virgin jungle and then plant oil palm. Proceeds from the timber extracted will go directly to Permaju.

Gross proceeds from the timber is expected to be more than RM1 billion, the news report

消息告诉《南洋商报》,沙巴基金(Yayasan Sabah)近期将20万英亩地段颁给这两家公司,以协助发展以及再植林计划。

Thursday, January 3, 2013

Hot Stocks PN17 counters played up after Destini news ------------ Written by Janice Melissa Thean of

KUALA LUMPUR (Dec 4): Companies in financial distress and without a core business, classified as Practice Note 17 (PN17) on Bursa Malaysia, saw a surge in price and volume traded on Friday morning as traders attempted to attract retail investors.

At noon, SILVER BIRD GROUP BHD [], PATIMAS COMPUTERS BHD [] and Integrated Rubber Corp Bhd (IRCB) were among the biggest gainers in percentage terms, having gained as much as 180%, 42.86% and 12% respectively.

“There is a concerted effort by proprietary traders to play up the PN17 companies as the market is quiet at this time of the year, but they still need to trade,” SJ Securities Sdn Bhd senior remisier Goh Kay Chong told

“These traders are pushing up such PN17 stocks in the hope that retail investors will jump in. Retailers will have to be very careful as regularisation of PN17 companies can take time,” said Goh, adding that penny stocks will see similar movement as low prices “represent low risks” to the traders.

In addition, the news on Destini Bhd applying to have its PN17 status lifted also fuelled interest in such companies. Destini announced two days ago that it had completed its regularisation and corporate exercises on Sept 13, 2012, and would apply to Bursa Malaysia to have its PN17 status lifted upon recording a net profit in the two consecutive quarters following the restructuring.
“Recently, PN17 status has been lifted much faster than before, indicating that the regulator’s attitude is changing,” observed a senior remisier with another securities firm. “Traders are capitalising on this piece of good news to induce retail investors to buy into such stocks.”

In the past, prices of most stocks jumped ahead of the news on the actual lifting of the PN17 status. Destini shares jumped from a low of 31.5 sen to 33 sen on Dec 31. Following its announcement on Jan 2, the share price rose again, closing at 35.5 sen on Jan 3.

According to Goh, such trading pattern is common now due to the January effect as the market begins to rally. Buoyant market sentiment may carry this trend through to the Chinese New Year period as many employees are given bonuses before the lunar festival, which falls on Feb 10 and 11.

At 2.04pm, Silver Bird shares had risen 4.5 sen or 90% to 9.5 sen on 27.18 million shares traded. Patimas, meanwhile, gained one sen or 28.57% to 4.5 sen with 47.15 million shares done. IRCB shares rose 0.5 sen or 4% to 13 sen on 11.1 million shares traded.