#Hot Stock* George Kent share price slides 6.3% despite better 1Q results, bonus issue

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KUALA LUMPUR (June 30): George Kent shares fell as much as 6.3% and were among the top losers in the afternoon following release of its quarterly results and announcement of a 1 for 3 bonus issue.

At 3:22 pm today, the company shares fell as much as 12 sen to RM1.76 per share before recovering to RM1.78 with some 2.6 million shares traded.

A dealer familiar with the stock told theedgemalaysia.com that the company was probably experiencing some short term profit-taking as it is trading at a 52-week high.

“The share price for George Kent has run up quite a bit and investors are probably taking this as an opportunity to cash out,” he said.

The group reported net earnings of RM6.5 million for the first quarter ended March 31,2014 versus RM5.5 million last year.

Revenue for the quarter fell to RM64.9 million, compared with RM84.69 million in the previous year’s corresponding quarter.

In the last financial year, the company earned a net profit of RM35.99 million compared with RM 25.56 million in the previous financial year.

It proposed a bonus issue of 75,102,542 new ordinary shares on the basis of one bonus share for every three existing shares held.