Is CYPARK 5184 CYPARK RESOURCES BERHAD ripe for a strong rebound?

 Is  CYPARK 5184 CYPARK RESOURCES BERHAD ripe for a strong rebound?



Cypark Resources Bhd is looking attractive for investors hoping to jump in on its current weakness.


The renewable energy company lost some 11.8% in the past month to close at 64 sen on June 20.


It is now trading at a mid-point of its 52-week high of RM1.23 and low of 30 sen.


Question is, which way will it go?


For now, the counter appears poised for an upward trend as investors ride on the current price weakness.


There was certainly a lot of buzz at the start of the year for Cypark.


After trading at its year low of 30 late last year, the couter shot up following the emergence of the Jakel Group as a substantial shareholder in the company.


Jakel Capital emerged as Cypark’s largest shareholder in January after acquiring a 27.33% stake via a private placement for RM67.1 million or 38 sen per share.


The emergence of  the investment arm of textile trading and property developer as a shareholder of Cypark led to its share price more than doubling in value.


This prompted an unusual market activity query by Bursa Malaysia.


Cypark attracted not only Jakel but other institutional in the form of Perkeso as well.


On Feb 2, Perkeso emerged as a substantial shareholder after buying two million shares in the company, bringing its equity interest to 5.06%.


For Jakel, its investment in Cypark is to strategically rebalance its investment exposure with the incorporation of environmental, social and governance (ESG) investing into its portfolio.


Before investors get really excited with this statement, one should really look at the what transpired with Jakel’s previous involvement.


In May 2021, Jakel Group managing director Datuk Mohamed Faroz Mohamed Jakel became a substantial shareholder of Sedania Innovator Bhd.


He bought a 12.55% stake in the group via a private placement exercise, said to be at 18 sen each.


The news boosted Sedania’s share price by as much as 40 sen or 29.2% to a record high of RM1.77.


At that time, Mohamed Faroz said it wanted to hedge against market volatility and his entry will also allow the companies to create synergies by tapping into each other’s strengths and expertise.


Sedania, through its greentech platform, can help Jakel save up to 30% in electricity consumption at its 600 or so stores.


However, nothing materialised since his entry into Sedania.


After a year or so, Mohamed Faroz ceased to be substantial shareholder of Sedania on August 23, 2022 after disposing his stakes in the open market.


Investors should really go into Cypark with eyes wide open as they don’t want to be caught if the selling starts.


For now, it doesn’t appear that the selling is starting but more of a right time to accumulate Cypark shares.
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