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.

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

Trade surge in Singapore penny stocks excites Malaysia
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
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

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

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

Written by Shalini Kumar of theedgemalaysia.com
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

吉隆坡5日讯）消息透露，佳华（Java，2747，主板工业产品股）与宏进工业（Permaju，7080，主板贸服股）获颁面积20万英亩土地，共30至60年的特许使用权。

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。

“有关地段一部份是可使用30年，一部份的特许使用权长达60年。”但本报无法探悉确实面积。

消息指出，政府主要是清理有关地段供发展和再植林计划，而佳华和宏进工业除了可享有砍伐区内树木的权力，更可在之后与沙巴基金以联营方式发展部份地区。

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

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 theedgemalaysia.com.

“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.

Hot Stocks Oversea Enterprise shares played up by licensed proprietary traders

Hot Stocks Oversea Enterprise shares played up by licensed
proprietary traders
Business & Markets 2012
Written by Ahmad Kamarul Anwar of theedgemalaysia.com
Friday, 21 December 2012 12:46

KUALA LUMPUR (Dec 21): As some licensed proprietary traders are
trading for direct gain instead of commission dollars, shares of restaurant
proprietor Oversea Enterprise Bhd surged 20% or 2.5 sen to 15 sen from
12.5 sen as of 12.22pm today (Friday), with 9.95 million shares done.
SJ Securities senior remisier Goh Kay Chong advised investors to be
cautious when doing trading by proprietary traders.

"Oversea is in the restaurant business, making over RM1 million in profit
for the last two years. While it is a famous restaurant chain, this may
just be a concept play as the players feel that restaurant business might
be doing well during the festive season," he said in an email sent to
theedgemalaysia.com

The ACE market-listed company made RM1.085 million in net profit for
its financial year ended Dec 31, 2011 (FY2011). On the previous financial
year (FY2010), it chalked up a net loss of RM324 thousand.
Oversea's shares averaged at 12.7 sen in the past 52 weeks, reaching
its high of 17 sen on March 27. On this date last year, it attained its 52-
week low share price of 11.5 sen.

"This stock hardly traded any volume before Dec 19. They were some
acculumation at 12 sen on Dec 19 and Dec 20. Suddenly, the volume
just came in this morning and the price went up to as high as 16.5 sen,
a gain of 37.5% just within three market days," said Goh.

He also surmised that Oversea may just be played up by the 50-odd
licensed proprietary traders in town. He said these traders play for direct
gains instead of commission dollars.

"Once they made some money, they might just turn to other stocks," he
said.

Goh also said it might not be easy to get out of the stocks once after the
price had surged.

"It's fun to make money. But it'll be frustrating when you start to lose
them. Be extra careful."

Exclusive CEO denies Syed Mokhtar takeover of XOX

Exclusive CEO denies Syed Mokhtar takeover of XOX
Business & Markets 2012
Written by Janice Melissa Thean by the theedgemalaysia.com
Thursday, 20 December 2012 12:18

KUALA LUMPUR (Dec 20): XOX Bhd chief executive officer Ng Kok Heng
has denied a news report that Tan Sri Syed Mokhtar Al-Bukhary may be taking over the loss-making mobile virtual network operator.

A local newspaper this morning said that the ACE Market-listed XOX
may be the target of a takeover by Syed Mokhtar.

"I have no knowledge of this. We have not been approached," said Ng,
when responding to a question by theedgemalaysia.com whether XOX
was being taken over.

"But of course if they approach us, we will look into it. We owe that to
the company and its shareholders to do what's best for them.
"We are very happy to hear this news and we hope it is true, but for now they are just rumours," he said.

Ng is the largest shareholder of XOX, with 15.72% stake in the company.
According to senior remisier at SJ Securities Goh Kay Chong, the takeover, if materialises, will be good for XOX.

"The takeover would be a good thing [for XOX] as there will be new funds and new ideas coming into the company," Goh said, adding that the influential businessman may be able to take XOX far.
XOX is seen as an interesting proposition to Syed Mokhtar's group because of its involvement in the telco business and its current strategic partnership with Celcom (M) Bhd.

XOX currently has a commercial agreement with Celcom to ride its mobile network infrastructure and also exclusively uses the 010 mobile number prefix which had been used by Celcom previously.
It has been reported that Syed Mokhtar's Puncak Semangat TECHNOLOGY [] Sdn Bhd may be riding Celcom's network to run its 4G service now that it has been awarded the 2600MHz spectrum by the Malaysian Communications and Multimedia Commission (MCMC).

At 11.26am today, XOX shares rose 2 sen or 12.5% to 18 sen on volumes of 7.93 million shares.

Hot Stocks XOX falls as much as 9.7% on profit taking

Hot Stocks XOX falls as much as 9.7% on profit taking
Business & Markets 2012
Written by Janice Melissa Thean of theedgemalaysia.com
Wednesday, 19 December 2012 13:09

KUALA LUMPUR (Dec 19): XOX Bhd shares fell as much as 1.5 sen or
9.68% to 14 sen this morning as investors began to take profit after
recent surge in the stock price.

At 12.30pm, shares of loss-making mobile virtual network operator lost
0.5 sen or 3.23% to 15 sen on trades of 12.64 million shares.

The fall today follows two days of massive surges with highs of 30 sen on
Monday and 22.5 sen on Tuesday.

"As the volume was high on Dec 17 (Monday), it is expected that this
stock can only rebound after the force-selling on Dec 21, 2012," senior
remisier Goh Kay Chong of SJ Securities told theedgemalaysia.com.

According to Goh, investors had begun taking profit on Monday, following
a steady rebound since Dec 3.

"The stock had slipped to a historical low of 10.5 sen on Nov 30 and the
investors or speculators thought that it had to stage a rebound then.

"Therefore, they started to buy since Dec 3 and the stock slowly and
steadily moved up within 11 market days to the high of 30 sen (Dec 17)
before it retraced to 20 sen [at Dec 17 close], meaning it has gone up
185.71% within a short span of time," Goh explained.

XOX was in the news recently when it announced plans to turn around
the company via its Voopee mobile application.

The Voopee application, which is slated to launch by next month, allows
smartphone users to make calls and send SMS at lower rates as it runs
on Internet data.

However, subscribers need to pay a commitment fee to continue using
the service. For this reason, Goh said there is cause for the stock to
move upward.

"Investors perceived that this service might improve the company’s
financial position therefore they jumped in to buy the stock earlier," he
said.

The ACE Market-listed XOX has been bleeding financially since its initial public offering (IPO) on June 10, 2011. Between then and the financial quarter ended Sep 30 this year, the group lost RM54.84 million.

In the financial quarter ended Sept 30, 2012, the group recorded a net loss of RM1.53 million on the back of RM9.19 million in revenue, versus a net loss of RM6.54 million for and RM8.98 in revenue for the year.