LFE CORPORATION BHD (-ve) 
LFE Corp (Fundamental: 0.15/3, Valuation: 0.5/3) was first featured in our Stocks with Momentum on April 7, when its shares closed at 21 sen. Yesterday, the stock triggered our momentum alert again, with 28.4 million shares changing hand. The stock closed at 26.5 sen. 

To recap, LFE Corp mainly provides mechanical and electrical engineering services. A PN17 company since October 2012, LFE Corp has been ‘Red Flagged’ for its low fundamental score, suggesting that investors should exercise caution while trading. Its gearing was over 109% at end-January.

Last Thursday, the company announced that Bursa Malaysia has approved its proposed regularisation plan. Among others, the plan includes capital reduction, rights issue, private placement and debt restructuring. 

The 1-for-2 rights issue would involve the listing of up to 42.45 million new shares, while the private placement and debt settlement exercise will involve an additional 66.67 and 11.2 million new shares, respectively.

This article first appeared in The Edge Financial Daily, on May 11, 2015.