Dataprep: An indeed costly lesson for all newbies and greedy punters

THEY say the writing has been on the wall for a long while but just that it went unheeded.

And please don’t blame the market regulators for Bursa Malaysia has even issued a ‘red card’ on March 10, warning investors to exercise caution in the trading of Dataprep Holdings Bhd’s shares due to its sharp rise.

The so-called advice to investors came after shares in the loss-making information technology company continued to defy gravity despite the issuance of an Unusual Market Activity (UMA) query by the exchange on March 1.

Today, Dataprep nosedived 47 sen or 30% to close at its intraday low of RM1.10 (the day’s second biggest loser).

In so doing, the stock has shed 73.4% from its all-time high of RM4.13 (recorded on March 16) following its meteoric rise from a mere 16.5 sen on the eve of the Chinese New Year (Feb 11).

As a consolation, the stock is still up 567% at its today’s closing price for investors who had picked up the stock at its lowest ebb (16.5 sen).

FocusM will fondly remember Dataprep as it broke six prior stories (seven including this one) that traced the company’s meteoric rise starting with From nowhere, Dataprep is once again investors’ darling on March 4 with the last being “An indeed make or break rollercoaster ride with Dataprep on March 23.

Devanesan Evanson

Surely, there is no intention here to rub salt on a nasty wound. But as a grim reminder, the news portal went to the extent of engaging the Minority Shareholders Watch Group CEO Devanesan Evanson for his take on Dataprep.

Among others, he told FocusM in this article entitled Many reasons for Dataprep’s minority shareholders to be extremely vigilant which appeared on March 17:

“First and foremost, Bursa Malaysia, the front-line regulator of the stock exchange, has alerted investors to exercise caution and make informed decisions in trading of Dataprep’s shares.

“The regulator went on to say that it “will not hesitate to take appropriate regulatory action to ensure fair and orderly trading”. Reading between the lines, the regulator seems to be alluding that trading may not be fair and orderly.

“Bursa does not issue such cautions willy-nilly; therefore, when they do, it must be taken seriously.”

In conclusion, all the best to all beneficiaries of Dataprep’s employees’ share options scheme (ESOS) who successfully exercise their share option totalling 2.92 million shares at an exercise price of 17 sen (as per Bursa Malaysia filing dated April 2). – April 6, 2021


Photo credit: Vynn Venture Sdn Bhd

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