Investors set to refocus on penny stocks

KUALA LUMPUR: Well-relaxed and refreshed investors are expected to return to penny stocks such as INIX Technologies Holdings Bhd, Ingenuity Solutions Bhd (Ingens) and SYF Resources Bhd this week, thanks mainly to a series of news flow surrounding the three companies.


Two weeks ago, Inix shares gained attention after it was reported that an Europe-based technology company may be acquiring a substantial stake in it.

"Although share prices of Inix have softened since the acquisition report, investors have certainly put the stock under their radar and will act on it as soon as more information is available," said a head of research from a local brokerage.

Ingens, meanwhile, reportedly is expecting to post its first full-year net profit since 2006. The company's executive director, Low Gah Luen, said the company is expected to post a net profit of RM12.5 million in the current financial year ending March 31, 2013.

A RM12.5 million profit will translate into a record profit for Ingens as even at its peak in 2004, the company had only registered a net profit of RM4.67 million.

"The profit forecast is based on our own internal target. We are fairly optimistic of achieving the target," Low told Business Times.

Ingens shares, which traded at between 7.5 sen and 12 sen in June and July, closed at 44.5 sen last Friday - its highest closing in more than seven years.

The market is also speculating that there may be a corporate development involving SYF over the near-term.

The company's stock, which traded at between 44 sen and 51 sen from June 1 to August 10, jumped to as high as 58.5 sen last week.

The shares' daily trading volume, which averaged at 359,000 units between June 1 and August 10, surged 10-fold to more than four million last week.

Technical analysts believe that the stock offers solid support and significant resistance at 44 sen and 65 sen levels, respectively.

Nevertheless, the research head added that it is important that investors continue to exercise caution when trading at such volatile times.

ingens, inix and syf there you have it