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SMPC Securities Rising Ahead of RIGHTS ISSUE

While the stock market, in particular the smaller cap stocks, took a beating as we enter the last quarter of 2014, one of a few stocks that managed to buck the trend was SMPC Corporation Berhad (SMPC). SMPC rose 9 sen on 8 October to close at RM1.03 on relatively heavy volume. Nevertheless, SMPC’s warrant (SMPC-WB) and its warrant-like Irredeemable Convertible Unsecured Loan Stocks (ICULS) or SMPC-LA did not follow the lead of the underlying share closing unchanged and marginally higher at 26.5 sen and 12 sen respectively. SMPC shareholders recently approved its proposed rights issue.

Minimum 25% Dividend Pay-Out Policy Dampens KGB-WA

Kelington Group Berhad (KGB) attracted investors’ interest towards the end of September 2014 as the daily volume transacted rose significantly from under 1 million shares to more than 5 million shares at the close of trading on 1 October 2014, closing at a price of 46 sen.  KGB’s company warrant (KGB-WA) was however under some selling pressure after enjoying a healthy run earlier and closed lower at 22.5 sen.

Sustained Turnaround May Boost Boon Koon Share and Warrant

The share price of Boon Koon Group Berhad has been languishing near multi-year low of between 13 sen to 15 sen for the past few months as the company still struggling to turn around a year after it implemented a rights and warrants issue to raise money to repay bank borrowings.  Nevertheless, the company turn around to make a small profit in the first quarter ended June of FYE3/2015 and has attracted some investors’ attention with its company warrant BKOON-WA generating some trading interest.  Boon Koon Group mother share and warrant closed at 14.5 sen and 7 sen respectively on 24 September 2014.

YKGI-WB : To Avoid or Accumulate When Major Shareholders Selling Warrants

One question that warrant investors face is whether to avoid company warrants when the major shareholders of the company dispose their warrants.  Although major shareholders are insiders and should know the prospects of their company well enough, avoiding warrants when the directors or major shareholders sell their warrants may not be the smartest thing to do.  A recent example was when IFCA MSC Berhad Executive Deputy Chairman Yong Kian Keong selling almost all his warrants under direct holding at the end of June this year at a price of 6 sen.  IFCAMSC-WA later went on to surge seven times to a high of 42 sen earlier this month.  There have also been other less spectacular rises of company warrants after insiders selling.

CAREPLS-WA : Boosted by Insiders’ Buying and Strong Profit Guidance

The share price of Careplus Berhad has been rising steadily since the latter part of August 2014 after the company posted strong growth in profits.  The rise was also supported by acquisitions of additional shares by the company’s directors and major shareholders.  Careplus mother share and warrant both rallied strongly on 10 September to close at 41.5 sen and 13 sen respectively.

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