Hot Stock Crescendo gains 5% with share buy-back, ex-dividend date near

by **Cals** Mon 22 Jul 2013, 17:18

Hot Stock Crescendo gains 5% with share buy-back, ex-dividend date near
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 22 July 2013 16:03

KUALA LUMPUR (July 22): With a share buy-back conducted for the past month and dividend going ex soon, shares of property developer Crescendo Corp Bhd and its irredeemable convertible unsecured loan stocks (ICULS) and warrants were catapulted to the top gainers in today’s trades.

At 3:42 pm, Crescendo shares rose 14 sen or 4.49% to RM3.26 on a thin volume of 68,400. The stock was traded at a high of RM3.30 earlier.

At the same time, Crescendo warrant CRESNDO-WA jumped 30 sen or 16.67% to RM2.10. A total of 7,400 warrants were traded.

Also, 600 of ICULS CRESNDO-LB changed hands. It rose 30 sen or 10.71% to RM3.10.

SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com it is possible that investors were chasing for the company’s dividend, which will go ex-date on August 6.

“It is possible, since it’s happening (going ex-dividend) soon,” he said over telephone.

The company will distribute its final single tier dividend of 8% or eight sen per share. The payment for the dividend will be made on September 6.

Filings with Bursa Malaysia also show that Crescendo management has also been undertaking a share buy-back exercise.

The exercise has been carried out as early as June 26 of this year. It also has been converting its warrants and ICULS into mother shares.

A share buy-back usually occurs when a company’s management believes its shares are undervalued.

Indeed, analysts have pegged Crescendo’s target prices at between RM3.50 and RM3.82.