DATAPREP Holdings Bhd which has been hogging the limelight as 2021’s ‘most happening’ or ‘rags-to-riches stock’ is surely not a counter for the faint-hearted.
Today alone, the information communications technology company traded within a 90 sen price range between an intraday low of RM1.28 and RM2.18.
Such extreme volatility may not spell a healthy value sign although some brave-hearted investors see that as a thrill to trade at that level.
Based on its trading chart, Dataprep started at its lowest ebb this morning before gaining traction to test and eventually surpassed yesterday’s (March 22) closing price despite the pervading bearish market sentiment across Bursa Malaysia.
More broadly, Dataprep has skyrocketed from a mere 16.5 sen on the eve of the lunar new year (Feb 11) to touch an all-time high of RM4.13 on March 16.
Yesterday, the counter resumed its steep descend by closing 75 sen or 30% lower at RM1.75 with 47.86 million shares traded.
This was a follow-up from last Friday’s (March 19) turbulence when the stock shed a hefty 24.47% or 81 sen to end at RM2.50 with 28.48 million shares exchanged hands.
Even against a FBM KLCI which edged down almost 21.44 points or 1.33% with losers thumping gainers by 688 against 297, Dataprep managed to recoup its earlier losses to close 10 sen or 5.71% higher at RM1.85 while emerging the fifth most active counter with 162.21 million shares traded.
Along its meteoric rise, Dataprep has earned the distinction of able to emerge unscathed from the claws of the market regulator – the unusual market activity (UMA) query by Bursa Malaysia on March 1 followed by a trading caution to investors on March 10.
A darling among retail investors during its heydays, Dataprep which was listed in 1991 had earned the distinction of being the first Malaysian information communications technology (ICT) company to be listed on the local bourse
In the quest to restore interest in the stock, the company’s new management has set its sight on long-term growth potentials, primarily by capitalising on several promising areas under the robustly-growing Industrial Revolution 4.0 (IR4).
For the record, Bumiputera-owned Widad Business Group Sdn Bhd (WBG) acquired the entire 64.2% stake belonging to Dataprep’s major shareholder VXL Holdings Sdn Bhd via its subsidiary Wardah Communication Sdn Bhd in July 2017.
This triggered a mandatory general offer which subsequently raised WBG’s stake in Dataprep marginally to 64.4%.
For its 9M FY2020, Dataprep extended its net loss to RM6.76 mil from RM3.64 mil in the same period a year ago although its revenue was slightly higher at RM23.63 mil (9M FY2019: RM21.07 mil). – March 23, 2021
Photo Credit: Vynn Venture Sdn Bhd