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DAIBOCHI-WB: Can It Rebound Post GO?

The price of the company warrant of Daibochi Berhad (DAIBOCHI-WB) plummeted after Scientex Berhad entered into a Heads of Agreement on 14 November 2018 with certain shareholders of the Company to acquire 42.41% stake in Daibochi for a total purchase consideration of RM222.50 million (equivalent to RM1.60 per Sale Share) to be satisfied entirely by issuance of new ordinary shares in Scientex at RM8.80 per share based on the exchange ratio of 1 new Scientex share for every 5.5 Daibochi shares held.  Pursuant to the Malaysian Code on Take-overs and Mergers 2016, Scientex would be obliged to extend a mandatory take-over offer to acquire the remaining shares in the Company not already held by Scientex and persons acting in concert with Scientex at the same considerations.  Daibochi share price was hovering around RM2.00 prior to the announcement of the acquisition and the price fell after the acquisition was done at a discount.  DAIBOCHI-WB suffered a much bigger fall as the offer price for the warrant by Scientex was only 1 sen. 

DANCO-WA: Steep Run Up on Good Earnings

The share price of Dancomech Holdings Berhad has been rallying since the company announced a good set of earnings for the financial year ended 31st December 2018.  The share price has been rising from 49 sen on 26th February 2019 when the results was announced and the pace accelerated on 12th March when Dancomech rose almost 10% in a single day to close at 67 sen on heavy volume.  The company warrant DANCO-WA managed an even better performance rising close to 20% on 12th March to close at 43 sen.

WEGMANS-WA: Better off buying mother share

WEGMANS-WA, the new company warrant of Wegmans Holdings Berhad, made its debut on 22nd January 2019 at Bursa Malaysia.  WEGMANS-WA was issued free to shareholders of Wegmans via a bonus issue of warrants on the basis of one warrant for every four shares held on entitlement date.  WEGMEANS-WA ended the first day of trading at 11.5 sen.  The warrant price then rose steadily to a high of 18 sen on 18th February before profit taking following the company announcements of latest financial results sent the price heading lower.  At the close of trading on 5th March, Wegmans mother share and warrant last traded at 32.5 sen and 15 sen respectively.

GDEX- wait and see if rally can be sustained

The share price of GD Express Carrier Berhad (GDex) surged on 26 February 2019 accompanied by heavy volume as the company posted sharp jump in earnings in the second quarter of financial year ending June 2019.  GDex also announced the listing of new shares under its Dividend Reinvestment Plan (DRP) a day ago.  The volume transacted on the mother share reached a multi-year high of 48.74 million shares.  With the mother share rising 18% to close at 36 sen on 26 February, the out-of-money company warrant GDEX-WB jumped 78% to 8 sen as the warrant inched towards being at-the-money.  

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YONGTAI-PA : Handsome gains await ?

The share price of Yong Tai Berhad has been one of the worst performing stocks in Bursa Malaysia over the last one year.  From a 52-week high of RM1.59 recorded on 1st March 2018, the stock fell as much as 81% to a low of 30 sen in the middle of December 2018.  After rebounding to a high of 44.5 sen in mid-January 2019, the share price is weakening again.  Besides the mother share, Yong Tai’s irredeemable convertible preference shares (YONGTAI-PA) and warrant (YONGTAI-WA) also suffered hefty losses during this period of time.  

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