I am sure u aware of latest announcement of HWGB. It is unexpectedly POSITIVE news for both HWGB and investors.
It is very clear these multiple proposals will be benefitting share price of HWGB from short-term to long-term.
This will be game changer for HWGB’s earnings prospect. The earnings would be sustainable and stronger than ever.
U can open link above to read details about the proposals.
From the proposals above, my comments below are divided accordingly:
a) Reducing liquidity from share consolidation in the stock to make less volatile in the share price would definitely boost the share price to be goreng even higher than current price level. Less liquidity would make the goreng job for operators easier than before as less crowd in the stock.
After the consolidation done, u may find it hard to accumulate this stock anymore. U won’t see the ceiling price. It could be all the way up.
Surprisingly, I just realised this stock is M&A Securities stock. Aha, goreng is surely on the cards.
# if u have 4 shares in HWGB or warrants right now, it will become 1 share later on.
b) The proposed diversification into a duty and tax free shop in Genting Highlands resort is not new news. However, the new thing is the Management has revealed that this new business may potentially contribute more than 25% of the net profits.
In fact, I already told before in my previous article here, https://klse.i3investor.com/blogs/fatprofitfatwealth/137302.jsp. I mentioned that this new business would potentially help HWGB to generate more revenue and make profit going forward.
Now who has the last laugh? Literally, I was right again.
In addition, if they are able to secure the license to operate duty free, they can still operate as a tax-free store.Therefore, no harm to its earnings prospect.
c) Private placement for the better future earnings.
The Board intends to undertake the Proposed Private Placement to enable the Group to raise funds without incurring additional interest costs associated with bank borrowings or other debt instruments.
The main objective of the Private Placement is for the Group to address the Group’s financial concerns as well as to diversify into business opportunities of growth to reduce the Group’s dependency on its existing businesses in the manufacturing of moulded power supply cord sets and trading of wires and cables.
Like I mentioned many times, the Company is on right track to see better earnings. The completion of these proposals could be within a short period of 2 months only!
So, whoever makes an early move, they will be the one gain the most!
Pre-shares consolidation, my view is if I were to apply 3x higher of HWGB's book value of 6sen, it could make out 18sen worth.
If other penny stocks can be goreng more than 3x of PBV at least such as Palette, DGSB, CUSCAPI, why not apply to HWGB too? Fair enough.
They are all similar as penny- stock like and stronger earnings prospects.
They are also few people kept mentioning HWGB to LIMIT UP with TP 45sen given by Dato Lim. I am not sure how concrete it is. It is up to u to believe it or not.