Hot Stock Tecnic shares decline after UMA query

by **Cals** Thu 30 Apr 2015, 01:01

Hot Stock
Tecnic shares decline after UMA query

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By Shalini Kumar / theedgemarkets.com | April 29, 2015 : 1:17 PM MYT

KUALA LUMPUR (Apr 29): [size=14]Tecnic Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) shares declined as much as 9.7% this morning after being queried by Bursa Malaysia yesterday on the sharp increase in the price of its shares.

At 12.30pm, Tecnic shares were nine sen or 9.73% lower at 83.5 sen, with 883,500 shares done. At 84.5 sen the stock had a market capitalisation of RM37.37 million. Yesterday, its share price jumped 25.85% or 19 sen to reach 92.5 sen, after about to 7.2 million shares changed hands.

Yesterday, Tecnic (fundamental: 2.8; valuation: 3) said it was not aware of any previously undisclosed corporate development, rumours or possible explanations which would account for the unusual market activity.

Tecnic's share price has been climbing rapidly in the last week, ahead of its distribution-in-specie of SKP Resources Bhd (SKP Resources) shares, following the special dividend ex-date last Thursday on April 23, 2015.

In fact, the company’s share price reached the upper limit threshold last Thursday and Friday, which prompted a momentary freeze of its shares trading price.

The company had earlier announced a corporate exercise which involved the distribution of 172.09 million SKP Resources (fundamental: 2.1; valuation: 1.1) shares held by Tecnic to Tecnic shareholders, on the basis of 4.26 SKP Resources shares for every one Tecnic share held.

It is also distributing RM94.93 million in cash proceeds and a RM11.7 million repayment received from the takeover by SKP Resources to shareholders, on the basis of RM2.64 for every one Tecnic share held.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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