THE after-effect of Bursa Malaysia’s indirect ‘slapping’ of Dataprep Holdings Bhd by cautioning investors against the stock’s meteoric rise – after its unusual market activity (UMA) failed to douse fiery speculation on the counter – bears semblance to the Gets Global Bhd saga last November.
Recall how the stock of the express bus services provider made a gigantic leap – that is unmatched by Gulliver – from a 52-week low of a mere 3.5 sen to a high of RM4.05 at one stage in a short span of time.
Since the issuance of its advice which can be compared to as ‘red card’ in football terms, Gets Global share price has consolidated considerably as evident by the current four-week range of RM2.03-RM2.19.
Such is the gullibility of Malaysian retail investors who let their greed getting the better of them instead of allowing common sense to prevail.
Back to the information communications technology (ICT) service provider, the market regulator has issued Dataprep an unusual market activity (UMA) query on Mar 1 – but to no avail – following its recent sharp rise in price post the Chinese New Year holidays.
The company – like many others before it – has in its UMA query response noted that it was not aware of any corporate development or explanation that could give rise to the unusual trading activities in its shares save and except for the announcements it made on Feb 15, 16 and 23.
From a low of 16.5 sen on Feb 11, Dataprep has skyrocketed by leaps and bounds to end at RM3.15 (intraday high: RM3.33) at the close of yesterday’s trading.
At 11.07am, Bursa Malaysia’s ‘chill pill’ has worked its magic to quell Dataprep’s price spiral. The counter has retreated 37 sen or 11.75% to RM2.78 with 18.28 million shares traded, thus valuing the company at RM1.69 bil.
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 (IR4.0).
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). – Mar 11, 202