Cuscapi Bhd (+ve) SHARES in technology solution provider Cuscapi Bhd (fundamental: 0.95/3, valuation: 0/3) triggered our momentum algorithm yesterday for the ninth time this year.
The stock closed half a sen or 1.47% higher at 34.5 sen, with a volume of 25.32 million shares, exceeding its 200-day average volume of 5,692,193 shares.
On Oct 10, Cuscapi proposed to issue 300 million new shares and 60 million new warrants to a group of investors, including veteran investor Tan Sri Koh Kin Lip, to raise up to RM79.8 million fresh capital. The new shares will be issued at 25 sen per share, with the warrants at eight sen each.
Of the RM79.8 million to be raised, RM70.1 million will be allocated for business expansion, according to its filing with Bursa Malaysia.
At the current share price, Cuscapi is trading at 5.75 times its book value.
Hmm,... how come a loss making company is riding high? For its second quarter ended June 30, 2017, it recorded a net loss of RM4.83mil on the back of RM9.1mil in revenue. For the six month period, it recorded RM9.35mil in net losses on the back of RM15.74mil in revenue.
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....
longtermvaluegain
867 posts
Posted by longtermvaluegain > 2017-10-17 09:57 | Report Abuse
Buy for keep TP 42 cent.