Oriented Media Group Bhd (-ve)

THE shares of Oriented Media Group (Fundamental: 1.2/3, Valuation: 0/3) gained 12.8% to an intra-day high of 22 sen, before retracing to close at 20 sen yesterday. Close to 4 million shares changed hands.

The company is involved in the provision of information technology related products and services. Earlier this year, it proposed a rights issue to raise up to RM42.7 million on the basis of 4 rights shares with 3 free warrants for every 2 shares held.

About half of the proceeds will be channeled to expand its web-based business through the setting up of an online sportswear trading platform in China. The balance will be used for marketing expenses and working capital purposes.

Loss-making for the last 5 years, OMedia continued to be in the red for 1HFYJune2015. On a slightly positive note, losses narrowed from RM 456,281 to RM 132,444 y-y on the back of a 28.9% increase in revenue to RM 890,951.

This article first appeared in The Edge Financial Daily, on April 27, 2015.