Hot Stock: Supermax surges for 2nd day on upbeat analyst reports, weak ringgit, valuation
Written by Jeffrey Tan of theedgemalaysia.com
Thursday, 05 September 2013 15:57
KUALA LUMPUR (Sept 5): Supermax Corporation Bhd saw its share and warrants rise sharply for the second consecutive day, after more analysts recommend a “buy” on the undervalued stock.
The glove stock rose by as much as 21 sen or 8.5% today. Yesterday, it rose 13 sen or 5.5% to close at RM2.46 per share.
The sharp fall in the ringgit vis a vis the US dollar is a positive for the company and the rubber glove sector in general, as export sales are denominated in dollar.
Supermax is also credited for having built a strong own brand manufacturing (OBM) presence and the stock price is seen as undervalued by 40% by a research firm.
At 3.36 pm today, Supermax share rose 19 sen or 7.7% to RM2.65, with volume of some 12 million shares. It was the fifth top gainer.
Dancing along with Supermax were its structured warrants. At 3.30 pm,SUPERMX-CM rose 11.5 sen or 109.5% to 22 sen with trades of 62 million units. It was the second top active counter.
“The big quantum change in Supermax’s share price is mainly due to the
weakening of the ringgit against the US dollar and as a result, its warrants rose too,” said senior remisier Goh Kay Chong over the telephone.
In a note today, Kenanga Research highlighted that Supermax will be a beneficiary of the weakening ringgit since the group did not hedge its US dollar receipts.
The research house said it likes the glove producer because it was trading at 10.5 times FY14 earnings per share (EPS) compared to its average 14% net profit growth over the next two years.
It added Supermax’s year to date share price performance (up 20%), was still lagging behind other players such as Kossan (up 90%) and Hartalega (up 40%), it said.
“We maintain outperform rating on Supermax with target price (TP) of RM2.82 based on twelve times FY14 EPS,” said Kenanga.
Meanwhile, TA Research said in a note yesterday that the glove producer had strong OBM presence, which made up 69% of sales mix.
“We are confident Supermax’s marketing capabilities will help ensure new capacities are utilized as and when they arrive,” said TA Research.
The research house has reiterated its ‘buy’ call on Supermax, with unchanged TP of RM2.90.
Showing posts with label The Edge online Malaysia. Show all posts
Showing posts with label The Edge online Malaysia. Show all posts
Thursday, September 5, 2013
Wednesday, September 4, 2013
Hot Stocks Pelikan and China Stationery fall, merger deal reportedly off
Hot Stocks Pelikan and China Stationery fall, merger deal reportedly off
Business & Markets 2013
Written by Kamarul Anwar and Ho Wah Foon of theedgemalaysia.com
Wednesday, 04 September 2013 13:24
KUALA LUMPUR (Sept 4): Pelikan International Corporation Bhd fell by as much as seven sen or 14% early today while China Stationery Ltd (CSL) fell 4% after their merger deal was reported to be falling apart by a Chinese newspaper yesterday.
Another news report today said that a CSL official had confirmed that the two companies’ distribution synergy had been called off.
The official said the main reasons were cultural differences between the two companies and differences in opinion over the pricing strategy.
At 12.30 lunch break, Pelikan shares receded 4.5 sen or 9% to 45.5 sen on heavy trades of 32.6 million shares. The net value of the share as at endJune 2013 was RM1.04.
CSL of China ended at 23 sen per share, down 0.5 sen or 2% after falling to a low of 22.5 sen, on trades of 32.8 million shares. Its net value per share stood at RM1.14 as at end-June 2013.
Both counters were among the top ten actives.
According to senior remisier Goh Kay Chong, the plunge of Pelikan shares today could also be due to profit-taking, as the stock had surged 14.5 sen or 41% to close at 50 sen yesterday.
Goh of SJ Securities told theedgemalaysia.com that Pelikan had surged after the news report yesterday because investors thought “it is good for Pelikan to split with China company.”
“To split with China Stationery of China could be good for the stock as investors do not have much confidence in China companies. Punters who bought yesterday are making money today,” said Goh.
He said lately investors are also looking for penny stocks to play as blue-chip counters have been victims of the volatility brought forth by the impending tapering of the US Federal Reserve quantitative easing.
In addition, investors do not like the way Pelikan had been sold down by CSL
recently.
According to exchange filings, Pelikan had been a subject of recent disposal by China Stationery. As of yesterday, CSL held only 2.37% of Pelikan shares after disposing 3.56% stake between August 28 and 30.
Last December, Pelikan signed a two-year dealership agreement with CSL for the latter to distribute and sell office and school stationery products marketed by Pelikan under the "Pelikan" trademark in China and Hong Kong on a non-exclusive basis.
But CSL has been reducing its shareholding in Pelikan after the former had paid a premium to acquire a 9.79% stake for RM50 million via a share swap.
Business & Markets 2013
Written by Kamarul Anwar and Ho Wah Foon of theedgemalaysia.com
Wednesday, 04 September 2013 13:24
KUALA LUMPUR (Sept 4): Pelikan International Corporation Bhd fell by as much as seven sen or 14% early today while China Stationery Ltd (CSL) fell 4% after their merger deal was reported to be falling apart by a Chinese newspaper yesterday.
Another news report today said that a CSL official had confirmed that the two companies’ distribution synergy had been called off.
The official said the main reasons were cultural differences between the two companies and differences in opinion over the pricing strategy.
At 12.30 lunch break, Pelikan shares receded 4.5 sen or 9% to 45.5 sen on heavy trades of 32.6 million shares. The net value of the share as at endJune 2013 was RM1.04.
CSL of China ended at 23 sen per share, down 0.5 sen or 2% after falling to a low of 22.5 sen, on trades of 32.8 million shares. Its net value per share stood at RM1.14 as at end-June 2013.
Both counters were among the top ten actives.
According to senior remisier Goh Kay Chong, the plunge of Pelikan shares today could also be due to profit-taking, as the stock had surged 14.5 sen or 41% to close at 50 sen yesterday.
Goh of SJ Securities told theedgemalaysia.com that Pelikan had surged after the news report yesterday because investors thought “it is good for Pelikan to split with China company.”
“To split with China Stationery of China could be good for the stock as investors do not have much confidence in China companies. Punters who bought yesterday are making money today,” said Goh.
He said lately investors are also looking for penny stocks to play as blue-chip counters have been victims of the volatility brought forth by the impending tapering of the US Federal Reserve quantitative easing.
In addition, investors do not like the way Pelikan had been sold down by CSL
recently.
According to exchange filings, Pelikan had been a subject of recent disposal by China Stationery. As of yesterday, CSL held only 2.37% of Pelikan shares after disposing 3.56% stake between August 28 and 30.
Last December, Pelikan signed a two-year dealership agreement with CSL for the latter to distribute and sell office and school stationery products marketed by Pelikan under the "Pelikan" trademark in China and Hong Kong on a non-exclusive basis.
But CSL has been reducing its shareholding in Pelikan after the former had paid a premium to acquire a 9.79% stake for RM50 million via a share swap.
Thursday, July 11, 2013
Hot Stock EA rises 4% on RM59m contract win
Hot Stock EA rises 4% on RM59m contract win
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Thursday, 11 July 2013 11:27
KUALA LUMPUR (July 11): EA Holdings Bhd extended its gains from
yesterday, after announcing it has clinched a RM59.14 million contract from
Inland Revenue Board of Malaysia (IRB).
At 11:06 am, the shares of the software solutions provider were up by half a
sen or 3.85% at 13.5 sen. A total of 14.79 million shares were transacted
within the 13-14 sen range.
SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com that
“there is no other reason” for investors to chase after EA Holdings shares
except for the multi-million ringgit government contract.
“The companyis making decent profit unlike other software solutions
providers. Projects also keep coming in,” he said over telephone.
Yesterday, the ACE Market-listed EA Holdings announced to Bursa Malaysia
that its wholly owned subsidiary EASS Sdn Bhd has won a RM59.14 million
contract for the provision of mainframe system upgrade services for the IRB’s
central and secondary data centres.
The company added the contract is expected to be completed within six
months and to be extended for another three years for licensing and
maintaining services.
In its first quarter ended March 31, 2013, EA Holdings earned a net profit of
RM1.5 million on revenue of RM11.3 million. This compares to the previous
year quarter’s net profit of RM2.1 million on the back of RM11.6 million in
revenue.
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Thursday, 11 July 2013 11:27
KUALA LUMPUR (July 11): EA Holdings Bhd extended its gains from
yesterday, after announcing it has clinched a RM59.14 million contract from
Inland Revenue Board of Malaysia (IRB).
At 11:06 am, the shares of the software solutions provider were up by half a
sen or 3.85% at 13.5 sen. A total of 14.79 million shares were transacted
within the 13-14 sen range.
SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com that
“there is no other reason” for investors to chase after EA Holdings shares
except for the multi-million ringgit government contract.
“The companyis making decent profit unlike other software solutions
providers. Projects also keep coming in,” he said over telephone.
Yesterday, the ACE Market-listed EA Holdings announced to Bursa Malaysia
that its wholly owned subsidiary EASS Sdn Bhd has won a RM59.14 million
contract for the provision of mainframe system upgrade services for the IRB’s
central and secondary data centres.
The company added the contract is expected to be completed within six
months and to be extended for another three years for licensing and
maintaining services.
In its first quarter ended March 31, 2013, EA Holdings earned a net profit of
RM1.5 million on revenue of RM11.3 million. This compares to the previous
year quarter’s net profit of RM2.1 million on the back of RM11.6 million in
revenue.
Monday, June 3, 2013
Hot Stock: Scope falls 23% on failed RTO by Matang
Hot Stock: Scope falls 23% on failed RTO by Matang
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 03 June 2013 17:04
KUALA LUMPUR (June 3): Loss-making SCOPE INDUSTRIES BHD []
extended losses, falling as much as six sen or 23.08% to 20 sen.
The losses came after shareholders of MCA-linked Matang Holdings Bhd
rejected a proposal to inject cash and assets of the latter into Scope.
At 4:06 pm, ACE Market-listed Scope was traded 4.5 sen or 17.31%
lower at 21.5 sen. The counter saw 1.57 million shares changed hands.
The stock fell four sen to end at 22 sen at 5pm.
This was a continuation in the decline in Scope's share price after
Matang's extraordinary general meeting (EGM) last Friday.
On that day, Scope lost four sen or 13.33%
Remisiers were not surprised with the decline in the stock's price.
“It’s quite obvious why shareholders are selling down Scope Industries’
shares.
“They were disappointed with the reverse takeover (RTO) of Scope
Industries not materialising.” said SJ Securities senior remisier Goh Kay
Chong.
Matang shareholders who were present at the EGM unanimously voted
against a proposal to inject the company’s cash and assets which
include 1,083 ha (2,707.5 acres) of oil palm PLANTATION [] into Scope
for RM145 million.
In return, Scope will issue new shares at an issue price of 25 sen each to settle the purchase consideration.
Matang will receive 580 million shares which the firm plans to distribute to its shareholders. For 1,000 shares held in Matang, a shareholder will receive 4,833 shares in Scope.
However, the consideration shares shall be earmarked in batches with different moratorium periods.
Upon completion of the deal, MCA’s investment arm Huaren Holdings Sdn Bhd will eventually hold 5.7% of Scope, making it the second-largest shareholder in the company.
The controversial proposed exercise manifested a political imbroglio within MCA. Its deputy president Datuk Seri Liow Tiong Lai has opposed the exercise when president Datuk Seri Dr Chua Soi Lek defended the move.
MCA has an estimated 10.75% stake in Matang.
In a statement last week, Liow said the proposal was not brought up at the MCA central committee meeting for approval.
Shortly after he issued the statement, Chua rebutted with a statement which read: “I would like to stress that the share exchange between Matang Holdings and Scope Industries will result in a reverse takeover (RTO) of Scope Industries by Matang. Such a deal is meant to add value to Matang shares.”
Scope made a net loss of RM1.87 million in the third quarter ended March 31, 2013 (3QFY13). Cumulative year-to-date net loss came to RM1.61 million.
Bloomberg data showed that Scope generated a net profit of RM 590,000 in FY12. This was a fraction of its previous year's net profit of RM 5.21 million.
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 03 June 2013 17:04
KUALA LUMPUR (June 3): Loss-making SCOPE INDUSTRIES BHD []
extended losses, falling as much as six sen or 23.08% to 20 sen.
The losses came after shareholders of MCA-linked Matang Holdings Bhd
rejected a proposal to inject cash and assets of the latter into Scope.
At 4:06 pm, ACE Market-listed Scope was traded 4.5 sen or 17.31%
lower at 21.5 sen. The counter saw 1.57 million shares changed hands.
The stock fell four sen to end at 22 sen at 5pm.
This was a continuation in the decline in Scope's share price after
Matang's extraordinary general meeting (EGM) last Friday.
On that day, Scope lost four sen or 13.33%
Remisiers were not surprised with the decline in the stock's price.
“It’s quite obvious why shareholders are selling down Scope Industries’
shares.
“They were disappointed with the reverse takeover (RTO) of Scope
Industries not materialising.” said SJ Securities senior remisier Goh Kay
Chong.
Matang shareholders who were present at the EGM unanimously voted
against a proposal to inject the company’s cash and assets which
include 1,083 ha (2,707.5 acres) of oil palm PLANTATION [] into Scope
for RM145 million.
In return, Scope will issue new shares at an issue price of 25 sen each to settle the purchase consideration.
Matang will receive 580 million shares which the firm plans to distribute to its shareholders. For 1,000 shares held in Matang, a shareholder will receive 4,833 shares in Scope.
However, the consideration shares shall be earmarked in batches with different moratorium periods.
Upon completion of the deal, MCA’s investment arm Huaren Holdings Sdn Bhd will eventually hold 5.7% of Scope, making it the second-largest shareholder in the company.
The controversial proposed exercise manifested a political imbroglio within MCA. Its deputy president Datuk Seri Liow Tiong Lai has opposed the exercise when president Datuk Seri Dr Chua Soi Lek defended the move.
MCA has an estimated 10.75% stake in Matang.
In a statement last week, Liow said the proposal was not brought up at the MCA central committee meeting for approval.
Shortly after he issued the statement, Chua rebutted with a statement which read: “I would like to stress that the share exchange between Matang Holdings and Scope Industries will result in a reverse takeover (RTO) of Scope Industries by Matang. Such a deal is meant to add value to Matang shares.”
Scope made a net loss of RM1.87 million in the third quarter ended March 31, 2013 (3QFY13). Cumulative year-to-date net loss came to RM1.61 million.
Bloomberg data showed that Scope generated a net profit of RM 590,000 in FY12. This was a fraction of its previous year's net profit of RM 5.21 million.
Monday, May 20, 2013
Market Close: KLCI up 0.45%, pares gains after hitting 1,781 pts
Market Close: KLCI up 0.45%, pares gains after hitting 1,781 pts
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 20 May 2013 17:27
KUALA LUMPUR (May 20): The FBM KLCI pared gains minutes before
market close after rising as many as 11.89 points, though the overall
sentiment was generally positive.
At 5 pm, the benchmark closed 7.99 points or 0.45% higher at 1,777.15
points. It was trading within the range of 1,770.95 points and 1,781.05
points.
A total of 2.85 billion shares worth RM2.66 billion were traded on a day
that saw gainers thumped decliners by five-fold, at 845 and 163
respectively.
The KLCI was lifted to the positive territory by UMW Holdings Bhd, UEM
Land Holdings Bhd, Petronas Dagangan Bhd and British American Tobacco (M) Bhd.
SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com that the local stock market is still on an uptrend.
“We are on a bull-run,” he said.
“Having said that, investors should be careful when it comes to investing. They need to rely on technical charts to get the timing right,” Goh commented.
While the recent announcement of Malaysia’s gross domestic product (GDP) growth was at a lower-than-predicted level of 4.1%, Goh said the country is expected to grow with more projects in the pipeline.
“We are still looking at a full-year growth of 5% of GDP. So the market still has an upside; with investors looking at construction, finance and oil and gas stocks.
“With these blue-chips gaining traction, the second- and third-liners will then also pick up,” said Goh.
Across the exchange, Luster Industries Bhd was the most-traded stock. It was followed by Daya Materials Bhd and Iris Corporation Bhd.
Top gainers included second liners Cahya Mata Sarawak Bhd, Naim Holdings Bhd and Deleum Bhd.
Top decliners were Genting Plantations Bhd, Jobstreet Corporation Bhd and KLCC Real Estate Investment Trust.
Other exchanges in the Asia Pacific also closed higher.
Japan’s Nikkei was up 222.69 points or 1.47%, Hong Kong’s Hang Seng gained 410.35 points or 1.78%, China’s Shanghai
Composite Index gained 17.61 points or 0.77%, Australia’s ASX 200 was up 28.26 points or 0.55% and Singapore’s Straits Times Index gained 4.22 points or 0.12%.
However, Korea’s Kospi lost 4.38 points or 0.22%.
Friday, March 1, 2013
Hot Stock Eden shares up on news it will build dinosaur park
Hot Stock Eden shares up on news it will build dinosaur park
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Friday, 01 March 2013 12:38
A + / A - / Reset
KUALA LUMPUR (Mar 1): Eden Inc Bhd emerged as one of the top actives this morning, days after it was announced the investment group is going to build a RM200 million dinosaur-themed amusement park in Malacca.
At 12:19 pm, Eden’s shares were up 1.5 sen, or 5.77%, to 27.5 sen with 3.84 million shares traded. The counter had hit a high of 28.5 sen earlier.
On Monday, Bernama reported Malacca’s Chief Minister Datuk Seri Mohd Ali Rustam announced that the state plans to build a dinosaurthemed “Jurassic Park” costing RM200 million at the 1Malaysia Square.
The park will feature hydraulic- and electronic-based models of 200 species of dinosaurs and will be built on a 12.1ha site by Eden and Yayasan Melaka. Mohd Ali said the park, which is “the first tour of its kind in Asia”, will take two years to complete. No specific date of completion was announced.
SJ Securities senior remisier Goh Kay Chong said this news might be an impetus for investors to buy Eden’s shares.
“Investors who love low-priced stocks look for this kind of news to see which companies to invest on,” he told theedgemalaysia.com.
He also added Eden is a safer company to invest on, as it already bounced from losses in FY10. Eden’s net losses in the year came to RM1.71 million on revenue of RM202.62 million.
For its financial year ended December 31, 2012 (FY12), Eden made RM11.38 million in net profit, or 3.65 sen per share, on revenue of RM91.28 million. The net profit was up by 2.82% from the previous year’s net profit of RM11.07 million on revenue of RM173.28 million.
However, Eden’s FY12 total net profit came solely from its fourth quarter, which raked in RM12.68 million in net profit. Its revenue for the period was RM15.98 million.
Eden’s food and beverage (F&B) and tourism segment contributed the lion’s share in revenue and pre-tax profit in the fourth quarter, amounting to RM10.22 million and RM7.81 million respectively. Year-on-year, the segment made RM8.68 million in revenue and RM360,000 in pre-tax profit.
In a filing to Bursa, Eden said the big jump year-on-year in its F&B and tourism segment’s revenue was because it received a
higher number of catering functions and a bigger attendance for its Underwater World Langkawi aquaria.
The higher revenue in the fourth quarter was also due to the reversal of provision in relation to entertainment duty, said Eden in the filing.
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Friday, 01 March 2013 12:38
A + / A - / Reset
KUALA LUMPUR (Mar 1): Eden Inc Bhd emerged as one of the top actives this morning, days after it was announced the investment group is going to build a RM200 million dinosaur-themed amusement park in Malacca.
At 12:19 pm, Eden’s shares were up 1.5 sen, or 5.77%, to 27.5 sen with 3.84 million shares traded. The counter had hit a high of 28.5 sen earlier.
On Monday, Bernama reported Malacca’s Chief Minister Datuk Seri Mohd Ali Rustam announced that the state plans to build a dinosaurthemed “Jurassic Park” costing RM200 million at the 1Malaysia Square.
The park will feature hydraulic- and electronic-based models of 200 species of dinosaurs and will be built on a 12.1ha site by Eden and Yayasan Melaka. Mohd Ali said the park, which is “the first tour of its kind in Asia”, will take two years to complete. No specific date of completion was announced.
SJ Securities senior remisier Goh Kay Chong said this news might be an impetus for investors to buy Eden’s shares.
“Investors who love low-priced stocks look for this kind of news to see which companies to invest on,” he told theedgemalaysia.com.
He also added Eden is a safer company to invest on, as it already bounced from losses in FY10. Eden’s net losses in the year came to RM1.71 million on revenue of RM202.62 million.
For its financial year ended December 31, 2012 (FY12), Eden made RM11.38 million in net profit, or 3.65 sen per share, on revenue of RM91.28 million. The net profit was up by 2.82% from the previous year’s net profit of RM11.07 million on revenue of RM173.28 million.
However, Eden’s FY12 total net profit came solely from its fourth quarter, which raked in RM12.68 million in net profit. Its revenue for the period was RM15.98 million.
Eden’s food and beverage (F&B) and tourism segment contributed the lion’s share in revenue and pre-tax profit in the fourth quarter, amounting to RM10.22 million and RM7.81 million respectively. Year-on-year, the segment made RM8.68 million in revenue and RM360,000 in pre-tax profit.
In a filing to Bursa, Eden said the big jump year-on-year in its F&B and tourism segment’s revenue was because it received a
higher number of catering functions and a bigger attendance for its Underwater World Langkawi aquaria.
The higher revenue in the fourth quarter was also due to the reversal of provision in relation to entertainment duty, said Eden in the filing.
Tuesday, February 12, 2013
Hot Stock IRCB rises to 21-mth high on debt restructure,share buy by substantial holder
Hot Stock IRCB rises to 21-mth high on debt restructure, share buy by
substantial holder
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 13 February 2013 12:30
KUALA LUMPUR (Feb 13): Integrated Rubber Corp Bhd's (IRCB) share price advanced to 22-month high on the back of news that the government’s CDRC has agreed to help in its debt structure plan and a substantial shareholder has acquired more shares from the open market.
At 12.05 pm, the most-actively traded stock rose 22 sen or 10% to 22 sen, after rising to 23 sen earlier, on trades of 21.43 million shares.
On Feb 8, the IRCB told Bursa Malaysia that the Corporate Debt Restructuring Committee (CDRC) has approved its application for assistance to mediate with its creditor banks over loans of RM16.89 million defaulted last December.
The company is required to submit restructuring scheme which must comply with CDRC's restructuring principles for IRCB to remain under the Informal Standstill Arrangement with the bankers within 60 days from Feb 6, it added.
Also on Feb 8, IRCB informed the stock exchange that its substantial shareholder Lau Joo Yong had acquired some 4.13 million IRCB shares on Jan 31 from the open market, thus raising his stake in the rubber glove company to 7.57%.
Lau had also bought some 1.2 million IRCB shares from the open market 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 Kay Chong, senior remiser at SJ Securities
Sdn Bhd.
On January 22, IRCB announced that it was facing possible winding up procedures if it failed to pay back its RM16.89 million debts to Maybank Bhd. There would be major impact on its financials and operations should the winding up proceedings be taken upon the company, it said.
But despite this bad news, its share price continued to climb from 14 sen since.
Dealers reasoned that IRCB’s recent appointment of new director Cheang Phoy Kean, who was controlling another rubber glove company before, could be the reason that the share price was not affected much.
Cheang was appointed as managing director of IRCB, following the resignation of major shareholder Tan Keng Beng, after his (Tan) family sold a 10.98% stake to Cheang via an off-market deal.
IRCB also announced earlier last 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 Tan family has since to cut down its stake in the company further. On Feb 5, the family sold some 30 million IRCB shares via off market transaction, Bursa filings show. As a result, the family is now no longer a substantial shareholder.
IRCB made a cumulative net loss of RM18 million in the nine months ended Oct 31, 2012, compared with a net loss of RM17.93 million a year earlier.
http://www.theedgemalaysia.com/business-news/230648-hot-stock-ircb-rises-to-21-mth-high-on-debt-restructure-share-buy-by-substantial-holder.html
substantial holder
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 13 February 2013 12:30
KUALA LUMPUR (Feb 13): Integrated Rubber Corp Bhd's (IRCB) share price advanced to 22-month high on the back of news that the government’s CDRC has agreed to help in its debt structure plan and a substantial shareholder has acquired more shares from the open market.
At 12.05 pm, the most-actively traded stock rose 22 sen or 10% to 22 sen, after rising to 23 sen earlier, on trades of 21.43 million shares.
On Feb 8, the IRCB told Bursa Malaysia that the Corporate Debt Restructuring Committee (CDRC) has approved its application for assistance to mediate with its creditor banks over loans of RM16.89 million defaulted last December.
The company is required to submit restructuring scheme which must comply with CDRC's restructuring principles for IRCB to remain under the Informal Standstill Arrangement with the bankers within 60 days from Feb 6, it added.
Also on Feb 8, IRCB informed the stock exchange that its substantial shareholder Lau Joo Yong had acquired some 4.13 million IRCB shares on Jan 31 from the open market, thus raising his stake in the rubber glove company to 7.57%.
Lau had also bought some 1.2 million IRCB shares from the open market 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 Kay Chong, senior remiser at SJ Securities
Sdn Bhd.
On January 22, IRCB announced that it was facing possible winding up procedures if it failed to pay back its RM16.89 million debts to Maybank Bhd. There would be major impact on its financials and operations should the winding up proceedings be taken upon the company, it said.
But despite this bad news, its share price continued to climb from 14 sen since.
Dealers reasoned that IRCB’s recent appointment of new director Cheang Phoy Kean, who was controlling another rubber glove company before, could be the reason that the share price was not affected much.
Cheang was appointed as managing director of IRCB, following the resignation of major shareholder Tan Keng Beng, after his (Tan) family sold a 10.98% stake to Cheang via an off-market deal.
IRCB also announced earlier last 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 Tan family has since to cut down its stake in the company further. On Feb 5, the family sold some 30 million IRCB shares via off market transaction, Bursa filings show. As a result, the family is now no longer a substantial shareholder.
IRCB made a cumulative net loss of RM18 million in the nine months ended Oct 31, 2012, compared with a net loss of RM17.93 million a year earlier.
http://www.theedgemalaysia.com/business-news/230648-hot-stock-ircb-rises-to-21-mth-high-on-debt-restructure-share-buy-by-substantial-holder.html
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 theedgemalaysia.com
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 theedgemalaysia.com
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 theedgemalaysia.com in a telephone interview.
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