Stockwatch

CAHB: THIS banking stock, considered a laggard in the sector, was playing catch-up amidst the bullish market sentiment. The counter surged nearly 16% or 54 sen to a 10-month high of RM3.98 last week. Rumours of merger talks had put CAHB in the spotlight. It was also highlighted that the shareholders' mandate for Renong Bhd to sell its 11.2% stake in CAHB would expire on Aug 29. The sharp rise in share price may help Renong fetch a high selling price, but may not help to expedite the sales because it is not easy to find a buyer, given the fact that Renong has been intending to sell that block of shares for more than four years. 

DMIB: THIS is one of the best performers on the KLSE. The share price jumped 59.5% or 81 sen in the past two weeks to finish the week at RM2.17. The surge in share price may imply that investors have noticed the underlying value of the company upon completion of the reorganisation plan. Under the proposed plan, Sime Engineering Services Bhd will take over DMIB's listing status and acquire 13 companies with businesses in the oil and gas, electrical and electronics, information technology, industrial, mechanical, engineering and biotechnology industries. With such diversified activities, the stock is a good candidate for current rotational plays on the KLSE. 

Sitt Tatt: THE dispute at Sitt Tatt is getting more complicated. Sitt Tatt decided last week to terminate a deal that had been completed to buy three semiconductor companies from MISL & Associates Sdn Bhd. The reason given was MISL, currently a 54.5% shareholder, had given notice that it would not honour its profit guarantee agreement. Sitt Tatt said this was a breach of the share sale agreement for the acquisition of the three firms. Prior to this, MISL had called for an EGM last month to remove the entire board of directors in Sitt Tatt and MISL had sold 10% of its stake in Sitt Tatt in the open market when the share price was reaching its peak. 

AJN Messaging: THIS Mesdaq counter hit its record high of RM2 last Friday since it was floated in January at an initial public offer price of 45 sen. There is another reason for its shareholders to celebrate. The company announced a 3-for-5 bonus issue last Friday. Some analysts foresee good earnings potential for the mobile content and application services provider on expectation of growing usage of short messaging services. But one may wonder whether the high share price had factored in the “rosy earnings picture”, given that its earnings per share came in at 4.52 sen for the nine-month period ended March 31, on a revenue of RM9.86mil. 

RHB Capital: FOR those who had hoped that the appointment of Michael Hague as CEO would turn RHB Bank Bhd into a “world-class” bank would be disappointed now. The former CEO of Standard Chartered Bank Bhd has tendered his resignation, apparently over differences with the controlling shareholders. Hague was on a two-year contract which was due to expire in June next year. Besides, several senior management staff in the investment banking and securities divisions who had helped steer the group into a leading investment bank had also quit. Despite that, RHB Capital share price rose, shrugging off news of the resignations. 

 

DMIB: THIS is one of the best performers on the KLSE. The share price jumped 59.5% or 81 sen in the past two weeks to finish the week at RM2.17. The surge in share price may imply that investors have noticed the underlying value of the company upon completion of the reorganisation plan. Under the proposed plan, Sime Engineering Services Bhd will take over DMIB's listing status and acquire 13 companies with businesses in the oil and gas, electrical and electronics, information technology, industrial, mechanical, engineering and biotechnology industries. With such diversified activities, the stock is a good candidate for current rotational plays on the KLSE. 

Sitt Tatt: THE dispute at Sitt Tatt is getting more complicated. Sitt Tatt decided last week to terminate a deal that had been completed to buy three semiconductor companies from MISL & Associates Sdn Bhd. The reason given was MISL, currently a 54.5% shareholder, had given notice that it would not honour its profit guarantee agreement. Sitt Tatt said this was a breach of the share sale agreement for the acquisition of the three firms. Prior to this, MISL had called for an EGM last month to remove the entire board of directors in Sitt Tatt and MISL had sold 10% of its stake in Sitt Tatt in the open market when the share price was reaching its peak. 

AJN Messaging: THIS Mesdaq counter hit its record high of RM2 last Friday since it was floated in January at an initial public offer price of 45 sen. There is another reason for its shareholders to celebrate. The company announced a 3-for-5 bonus issue last Friday. Some analysts foresee good earnings potential for the mobile content and application services provider on expectation of growing usage of short messaging services. But one may wonder whether the high share price had factored in the “rosy earnings picture”, given that its earnings per share came in at 4.52 sen for the nine-month period ended March 31, on a revenue of RM9.86mil. 

RHB Capital: FOR those who had hoped that the appointment of Michael Hague as CEO would turn RHB Bank Bhd into a “world-class” bank would be disappointed now. The former CEO of Standard Chartered Bank Bhd has tendered his resignation, apparently over differences with the controlling shareholders. Hague was on a two-year contract which was due to expire in June next year. Besides, several senior management staff in the investment banking and securities divisions who had helped steer the group into a leading investment bank had also quit. Despite that, RHB Capital share price rose, shrugging off news of the resignations.