Ailing ITFIRM gears up for turnaroundd IT p
Post# of 93
Ailing ITFIRM gears up for turnaround d
IT products firm may transform
itself into oil and gas player
A TURNAROUND tale could be on the cards for the company, which has been largely quiet since 2009 when it was a darling of retail investors amid a penny stock craze.
The ailing IT products firm – among the most widely held small cap stocks here – could be transformed into a gas and oil player if its plans come off.
Analysts say the proposed deal could turn the company around and restore profitability, create value for shareholders and transform the company into an oil and gas business.
The stock was with no shares changing hands since some time. That is a far cry from its heyday in 2002 when it was worth over 20 cents a share, or even during mid-2007 when it was trading at around four cents.
Remisiers say the stock has garnered muted investor interest despite the potentially profitable development. A broker who declined to be named said: “Resource stories have become a little overused... They want to see more concrete numbers and evidence first.”
But one key factor in favour of the company is Mr Lau.
Mr Lau is the chief executive of General Nice Resources (HK) – a private firm with assets of more than US$8 billion (S$10 billion). The group’s businesses include coal mining, coke export and iron ore mining. “We believe this ‘big brother’ can contribute substantially to the company.”
Should an agreement be inked, the proposed transaction will also need shareholder approval at an extraordinary general meeting before it can proceed, as it involves an interested party transaction.
A TURNAROUND tale could be on the cards for the company, which has been largely quiet since 2009 when it was a darling of retail investors amid a penny stock craze.
The ailing IT products firm – among the most widely held small cap stocks here – could be transformed into a gas and oil player if its plans come off.
Analysts say the proposed deal could turn the company around and restore profitability, create value for shareholders and transform the company into an oil and gas business.
The stock was with no shares changing hands since some time. That is a far cry from its heyday in 2002 when it was worth over 20 cents a share, or even during mid-2007 when it was trading at around four cents.
Remisiers say the stock has garnered muted investor interest despite the potentially profitable development. A broker who declined to be named said: “Resource stories have become a little overused... They want to see more concrete numbers and evidence first.”
But one key factor in favour of the company is Mr Lau.
Mr Lau is the chief executive of General Nice Resources (HK) – a private firm with assets of more than US$8 billion (S$10 billion). The group’s businesses include coal mining, coke export and iron ore mining. “We believe this ‘big brother’ can contribute substantially to the company.”
Should an agreement be inked, the proposed transaction will also need shareholder approval at an extraordinary general meeting before it can proceed, as it involves an interested party transaction.
(0)
(0)