Hi to all fellow investors and traders !
Today I would like to share my thoughts the following counter:
SAUDEE GROUP BERHAD or SAUDEE (Code 5157, MAIN Market, Consumer
Products & Services)
Some basic info on this company:
i. Number of shares float : 161.27 million
ii. Market Cap : RM 56.45 million
iii. Last closing price : 35 cents
iv. Website : https://www.saudee.com/
SAUDEE - MAK SIEW WEI IS INVESTING BIG IN THIS STOCK !!!
1. Mak Siew Wei is Currently Executive Director of SAUDEE and also sits on boards of few other public listed companies
Below info taken from latest 2020 Annual Report. As we can see, Mak Siew Wei had been appointed Executive Director of Saudee since August 2020.
He is a prominent person in the public listed space, and also sits on few other boards such as AT Systematization Bhd, Advance Information Marketing Bhd, Green Ocean Corporation Bhd, Pasukhas Group Bhd.
Believe that his expertise will be valuable to SAUDEE in the upcoming future.
2. Undertaking to subscribe rights issue - a show of BIG confidence !!!!
SAUDEE will be undertaking a right issue to expand its production capacity. From the document, we can read that Mak Siew Wei, has undertaken to subscribe the minimum required quantity for this rights issue to move forward.
Should this scenario happen, he will be holding about 30% of SAUDEE after the rights issue has been completed, and 100% of the new warrants.
This understaking shows a big confidence by him in the purpose of the right issue and the future of this company.
3. The main purpose of the rights issue is for expansion ( a good thing ! )
Refer below notes taken from the rights issue document. At the minimum scenario, the funds will be used to construct a new cold room, to increase capacity of product loads.
This purpose of rights issue is seen as a positive thing, as the funds will be used for expansion and not to pay debt.
At the maximum case scenario, the company will utilize the funds for expansion of production capacity and other necessary work besides the construction of cold room.
4. Technical Analysis - Bankers chips increasing position in 60m chart, reverse trend breakout
Let's take a look at the 60 minutes chart of SAUDEE using Homily software:
A few observations:
i. We see that the price has broken up above the resistance line, indicated by the change of colour from green to pink. This means that the downtrend has changed to an uptrend
ii. Red chips have started to increase by more than 50%, and green chips have been reduced (weak sellers have been flushed out). This show more long term holders are buying into this stock and holding on for higher prices
iii. If price continue trending then price should be able to test resistance around R1 43c, then R2 50c.
5. SAUDEE WA - A potential high gainer with the right momentum and sentiment
Let's take a look at SAUDEE WA profile. We note that the expiry is about 1 months ++ to go, however, the strike price of 50c is quite reasonable for the time left.
With a premium of 51%, this warrant might surge higher should the mother shares see strong momentum in the upcoming weeks.
CONCLUSION
Based on my opinion, SAUDEE should be given attention in coming weeks, based on below:
i. Mak Siew Wei as Executive Director of SAUDEE who also sits on many other public listed boards, a value adding gem
Thanks for reading and see you in the next post.
THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.
Yours Truly,
INVESTHOR
https://klse.i3investor.com/blogs/InvesthorsHammer/2021-02-20-story-h1541170725-MAK_SIEW_WEI_IS_INVESTING_BIG_IN_THIS_STOCK.jsp
