good support so far from small and giant bilis at 0.10 and 0.105 since yesterday with more than 400M shares changed hand. The shark is also not disposing aggressively and pull down the price but instead they are waiting for ikan bilis to take down their shares. Consolidation pattern with high volume... something brewing ...
KUALA LUMPUR (July 29): XOX Bhd and Key Alliance Group Bhd were the most actively traded counters on Bursa Malaysia in the morning session after Key Alliance raised its stake in XOX to become the single largest stakeholder in the mobile virtual network operator yesterday.
At 10.20am, XOX slipped one sen to 27 sen with 28.90 million shares traded, while Key Alliance was unchanged at 10 sen with 19.16 shares transacted.
In a statement yesterday, Key Alliance said it is converting 248.6 million preference shares in XOX to mother shares for RM6.2 million, bringing its total shareholding of XOX to 347.9 million shares representing 17.83% of the paid up-capital of XOX.
The information communications technology (ICT) provider said the board felt this is an opportune time to increase its stake, given the recent developments in XOX's rapid moves to capture different revenue streams, which fit synergistically with Key Alliance's cloud, data centre and Internet of Thing (IoT) forays.
"The investment in XOX has paid off, with the moves towards artificial intelligence (AI) vending machines, micro financing and now its potential partnership with foreign telcos for the 5G programme all being positives to increase revenue streams going forward, capitalising on the subscriber base," it said.
With the group's recent expansion plans well documented to branch into the medical devices industry, Key Alliance said the strategic ownership of XOX has provided the group with a clear opportunity to move into cloud-based digital healthcare solutions utilising XOX's e-wallet capabilities, as well as the connectivity, computing and storage capacity provided by Key Alliance's data centre and cloud services.
Those who sell their shares had forgot kgroup do involve in covid test kits and recently got a lot of projects. With covid, technology and Xox. Kgroup got bright future, this is the next frontken
The Sun paper had said KGroup has 248.6m shares converted from IRCPS at a price of 5s for RM6.22m. KGroup had actually converted 248.6m IRCPS into 124.3m ordinary shares (at a conversion rate of 2 for 1), paying a total of RM6.2m or 5s for each ordinary share.
KGroup had previously before the movement control order period, subscribed up to almost 400 million XOX PA at 2.5s a share. So, there is still a balance of about 150m IRCPS or 75m ordinary shares to take up upon conversion.
Giving XOX a value of 25sen as an example (currently last traded at 26.5s), the new shares have increased the value of the company by about RM25m (124.3m shares x 20s each). Together with the balance of 75m shares, the total value enhanced by their investment in XOX, is RM40m, or over 885m shares, 4.5s per share.
All in all, it Is now reported that the exercise is "...bringing its total shareholding of XOX to 347.9 million shares representing 17.83% of the paid up-capital of XOX."
The current NBV of KGroup before the above exercise is 11.47. Looks like the revised figure would be more in the region of 15s, more with the new foray. We'll have to wait and see if the share price catches up with the latest development..
The panic selling at XOX cause the KGroup price also down today.. but we still can see the support at 0.09 to 0.095 still strong, consolidating phase. Expecting XOX to rebound next week thus KGroup will follows.
Investments had been ploughed into other sectors and counters like this had escaped attention currently. The herd mentality is when it had surged significantly will activity begin to build up. Of course, paying a little premium could be worth the wait.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zoelok
17 posts
Posted by zoelok > 2020-07-29 12:39 | Report Abuse
i hold...