Saturday 23 January 2016


Similarities between GHLSYS and KOMARK:

1. Change in major shareholder(s)
2. Change in management team
3. Did not do so well financially before the change in major shareholder(s) and management team
4. Undertook rights issue after change in major shareholder(s) and management team
5. Underwent restructuring
6. Share price performed-well post rights-issue
7. Improvement is financial performance

Similar trend is observed in TPC:
1. Change in major shareholder (HUATLAI, largest egg producers in Malaysia)
2. Change in management team. Currently led by Huat Lai's MD
3. Did not performed well previously
4. Rights issue with free warrants were listed on 22 Jan 2016
5. Underwent PN17 regularisation plan
6. Share price holding up well on the first day of listing of rights shares and free warrants.
7. Turned profitable in FY15. Required 2 consecutive profitable quarters after the completion of regularisation plan to be lifted from PN17.

Current its market cap is only RM70m. The newly listed warrants (exercise price: 20sen/warrant) is traded at a premium of 10%, which I think is minimal for a low price warrant (18.5sen), and having  tenure of 5 years.

I have included the warrants in my watchlist.

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