(Please check the information provided.  Some of the infomation are based on my memory or rough estimates.)

EXCEL FORCE  VS  MYEG MARKET CAP

1. Excel Force market cap is only RM172m v RM4.6billion for MyEG.

2. Why the single largest shareholder of MyEG (40%) interested in EForce?

3. The latest MyEG profit is about RM142m v EForce of RM7.5m.

CHANGE IN SHAREHOLDINGS

1. As noted, there is a major change in the substantial sharheholders interest since early 2016.

2. New substantial shareholders

    (a)  Feb 2016          Datuk Jayakumar (Project Director of MyEG)                   10.4m            5%

    (b)  Apr 2016          Asianet (also single largest shareholder of MyEG)            38.0m           18%

    (c)  May 2016           Brahmal (Creador's CEO)                                                 16.0m           7.7%

3.  Total held by 3 new substantial shareholders is 30.7%.

4.  EForce share price went up since mid April 2016 from below RM1.00 and touch the peak of RM1.88, and yesterday closed at RM1.53

5.  Past 5 years average earnings of EForce is between RM6-8m with double digit profit margin and ROE.

WHAT IS BREWING?

1.  Why a single largest shareholder (Asianet) of MyEG with market cap of RM4,600m be interested with EForce, which is only about 3.7% of MyEG market cap?

2.  Although both companies have good fundamentals (good profit margin and high ROE), but they are traded at PE of above 30 and 20 respectively.

3.  Of course, analysts did estimate MyEG has CAGR of next 3 years of >30%, perhaps that is the reason for such high PE.

4. But, looking on EForce existing business, it can only generate about RM7m profits.  No material announcement since the change in substantial shareholders.

BRAHMAL FACTOR AGAIN?

1.  As we have seen in the news, Brahmal has been making news in the corporate world lately, with the acquisition of up to 3% OCK Group, announced last Friday, October 7, 2016 and with intention to take up more.

2.  Brahmal track record as an individual is supernormal.  Some of his investment tripled in 3 years and some double in a year.

3.  Surely he know something that no ordinary investor know, else he wouldn't have add another 2 million shares in September.

4.  Could MyEG spin off some projects for EForce? Very possible.

EFORCE

1.  EForce are basically providing software apps for the stockbroking industry and making stable profits.

2.  Could EForce be another successful IoT?

3.  Or another disruptive Fintech?

4. The existing MD and substantial shareholder, Mr Jeff Wang, has been selling down since late last year.

5.  Jeff is a Taiwanese, and he is 60 this year.  Perhaps he wants to retire.

SPECULATIVE

The price has doubled this year, mainly due to the positive sentiment from the new substantial shareholders, Asianet, Datuk Jaya and Brahmal.  Let us see what will they bring to the table.

In today's market, the market cap of EForce is very small, i.e. less than RM200m.  So, in a software apps business, any injection of projects of >RM100m (which is small by today's standard), can double or triple EForce profit easily.

It is also not difficult for EForce to do the similar financial engineering many companies is doing, Split, Bonus, or Even Free warrants, to improve the liquidity.

Stay TUNE, lets hope some good news (secure major contracts) over the next 6 months or so.