TMS -Media Shoppe stock hot on talk of govt project

Published: Saturday August 17, 2013 MYT 12:00:00 AM
Updated: Saturday August 17, 2013 MYT 6:55:05 AM
Media Shoppe stock hot on talk of govt project

PETALING JAYA: The Media Shoppe Bhd (TMS) has been hogging the penny stock limelight of late with its trading volume and share price ballooning.

Over the past one week, the stock has advanced some 31% to 10.5 sen. Yesterday, it was the most actively-traded stock with more than 132 million shares changing hands.

Market talk has it that interest in the Internet-based solutions provider could be attributed to the company being poised to receive a project from the Government to provide information communications technology (ICT) systems to government schools nationwide.

The net profit from this is expected to be some RM100mil spread over five years.

TMS had last year entered into a teaming agreement with Konsortium Jaya Sdn Bhd, a subsidiary of Lembaga Tabung Haji, to submit a proposal to the Government in relation to this management system project for 10,000 schools nationwide.

However, only now the project had materialised, said a source.

TMS, at present, already reportedly supplies such systems, which is used by teachers in their daily lessons, to 88 schools in the country.

The company, which is currently loss-making, recently announced that it had fixed the issue price for the placement of some 79 million new shares at 10 sen per share.

It said in December that it had plans to increase its e-commerce application offerings via acquisitions.

In recent times, it had proposed to acquire the entire equity interest in ICT hyper-store Viewnet Computer Systems Sdn Bhd for RM12.5mil to be paid by way of 125 million new ordinary shares of 10 sen each in TMS.