Key Asic not aware of reason for share price rally

by **Cals** Tue 08 Sep 2015, 21:11

Key Asic not aware of reason for share price rally
By Gho Chee Yuan / theedgemarkets.com | September 8, 2015 : 8:09 PM MYT

KUALA LUMPUR (Sept 8): Key Asic Bhd ([You must be registered and logged in to see this image.] Valuation: 0.00, Fundamental: 1.55), whose share price surged 162% in two trading days to close at a four-year high of 21 sen today, said it has no knowledge of the recent spike on its share price and volume.
The sudden jump in share price and trading volume has resulted in Key Asic being slapped with an unusual market activity (UMA) by Bursa Malaysia today.
In a reply later in the evening, Key Asic said it was not aware of any rumours that may account for the UMA.
Shares in the electronic component manufacturer saw its share price marching to a multi-year high when the market started trading on Monday and the buying frenzy continued today.
The stock closed at 21 sen after it jumped to 22 sen in the afternoon. Some 10 million shares changed hands today, and 2.8 million on Monday. This is a big contrast to barely 15,000 shares traded last Friday.
The company pointed out there was a news report, stating the company was expected to launch two new ultra mobile products, namely KDrive and K-Card in second or third financial quarter this year.
According to its latest quarterly result announcement, Key Asic said K-Drive is essentially a portable Wi-Fi personal backup device that doesn't require any internet connection to back up personal data.
Meanwhile, K-Card is its own in-house brand for Wi-Fi SD card that would turn non-Wi-Fi devices into Wi-Fi enabled devices.
"KCard launching has been delay until the end of third quarter. Such delay has impacted the expected revenue for the group during the second quarter and the management has taken active steps in resolving the issues," it said in the financial result announcement.
For the second financial quarter ended June 30, 2015 (2QFY15), Key Asic saw its net loss narrowing to RM3.18 million from RM4.6 million last year. Revenue jumped 172% to RM6.5 million from RM2.39 million a year earlier.
(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.)