NICORP (4464) : Nicorp - Unveiling The Truth
Naim Indah Corporation Berhad (Nicorp - 4464) had finally started to unveil more solid corporate development in the public scene.
To recap, Nicorp had been slated to see a series of corporate exercise to restructure the company. After the fiasco from Raymond Chan in Nicorp, the company had finally seen a more solid direction under the lead of Dato Siaw Swee Hin now.
Dato Siaw Swee Hin had earlier buyout partial of the stakes from Raymond Chan on his disposal, while another small portion had been taken up by Quantum Discovery Sdn Bhd, which was then owned by Datin Khoo Lay Wah.
The latest development on 11th November 2014 had saw Dato Siaw Swee Hin, along with his brother, Siaw Sween Woon, taking over Quantum Discovery Sdn Bhd after buying out from Datin Khoo Lay Wah and her partners.
The buy out will see Dato Siaw having a direct stake of 39,172,600 shares and indirect stake of 67,847,976 shares from Quantum Discovery Sdn Bhd, totaling almost 14% in a short period of time.
While doing so, Siaw Swee Woon had also started to accumulate shares from the open market as to add up his interest from the indirect stakes that he owned at Quantum Discovery Sdn Bhd.
The recent most encouraging moves in Nicorp had been the appointment of Dato Siaw Swee Hin as the Managing Director of Nicorp, and the complete exiting of Datuk Raymond Chan in Nicorp, paving way for an even solid development.
Let's take a look at the past and current price chart of Nicorp.
In fact, a quick look at Nicorp will suggest that Nicorp had a certain degree of corporate development that had been in the process to materialize back then at May 2013. Nicorp shares had been heavily traded in the month of May 2013, with daily transacted volume reaching more than 160 millions of shares exchanging hands, and touched RM 0.25.
However, due to the delay in the private placement process in which had just went through at RM 0.12 a share, Nicorp is now geared up for a mega change under the new lead of Dato Siaw Swee Hin.
The share price had been trading at a fairly rock bottom price at the range RM 0.12, considering the insider accumulation at the range of RM 0.115 to RM 0.125, and private placement exercise being placed at RM 0.12 as well.
Should Nicorp be able to hit above RM 0.145 with a strong breaking volume, then Nicorp will be heading to challenge the psychological barrier of RM 0.20, then RM 0.25.
I believe Nicorp is a worthwhile mid-long term investment. Despite it's pitiful fundamental outlook at the current scene, notable development and changes had been seen in the top level management and a visible white knight - Dato Siaw Swee Hin, who is a low profile businessman that had establish business in Malaysia, Singapore and Vietnam will be the main core driver in Nicorp.
Nicorp will be a good consideration based on
- Dato Siaw Swee Hin appointment as Managing Director of Nicorp
- Dato Siaw Swee Hin and brother, Siaw Swee Woon buying over Quantum Discovery Sdn Bhd, increasing indirect stakes to 8.78%
- Complete exit of Datuk Raymond Chan in Nicorp
- Executive Chairman, Dato Abdel Aziz's increasing interest in Nicorp and intention to deal with Nicorp shares at closed period.
- Private placement priced at RM 0.12 fully subscribed.
- Insider and director's accumulation being at RM 0.115 to RM 0.125.
- Potential RTO target for Alltrust International Berhad.
Nicorp will be looking good to challenge a short term TP of RM 0.20, while a longer term TP will be able to see Nicorp trading at RM 0.30 to RM 0.50 should there be more solid development.
Bone's short term TP: RM 0.25 (upgrade)
Reference
Nicorp - Throttle Forward
Cheers and have a nice day
Regards
Bone
http://bonescythe.blogspot.com
