UMA C.I. Holdings: Shares and volume rise on possible investment negotiation

by **Cals** Tue 12 May 2015, 02:57

UMA
C.I. Holdings: Shares and volume rise on possible investment negotiation

KUALA LUMPUR (May 11): C.I. Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) said the sharp rise of its share price and trading volume recently may have been contributed by its conclusion of a possible investment negotiation.
In a reply to Bursa Malaysia's unusual market activity (UMA) query this afternoon, C.I. Holdings (fundamental: 1.85; valuation: 0.6) said the company had just concluded its negotiation with parties regarding a possible investment.
"The company expects to make an announcement to Bursa Securities within these few days," it added.
Apart from the above, the group said it was not aware of any rumour or report concerning the business and affairs of the company that may account for the trading activity.
"The company is not aware of any other possible explanation to account for the unusual market activity and the company will comply with Main Market Listing Requirement (MMLR) of Bursa Securities, in particular paragraph 9.03 of MMLR of Bursa Securities on immediate disclosure obligations," it added.
Earlier today, Bursa had queried C.I. Holdings over its recent sharp rise in the share prices.
"We draw your attention to the sharp rise in price of your company's shares recently," the exchange regulator queried.
"In light of the above and in order for investors to be able to make informed investment decisions, you are requested to respond, after making due enquiry with your directors, major shareholders and such other relevant persons, to the following queries immediately for public release in accordance with paragraph 9.11 of the MMLR," it added.
C.I. Holdings has a principal activity of manufacturing and trading of water taps, showers, and other plumbing fittings.
The stock had earlier risen to a high of RM3.11 before dipping to its intra-morning low of RM2.73.
At 12.30pm, it fell 11 sen or 3.78% to RM2.80 with some 2.13 million shares changed hands, giving it a market capitalisation of RM450.36 million.
C.I. Holdings started its price rally last week after it returned to the black in its third quarter financial results announced last Wednesday (May 6). It was traded at RM2.35 on May 6.
To recap, it posted a net profit of RM2.1 million as compared to a net loss of RM2.1 million in the previous corresponding quarter, while revenue soared 640% to RM71.02 million from RM9.59 million previously.
In the nine months, it posted a net profit of RM5.35 million against a net loss of RM1.86 million in the previous corresponding period.
[size=12](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.)[/size]