SOME 219.5 million shares valued at about RM487.8 million were traded off market from May 20 to 26 in blocks of at least 500,000.

Among the notable transactions were those involving Metronic Global Bhd (fundamental: 1.25; valuation: 0.3). Some 35 million shares or a 5.01% stake moved off market on May 26 in two direct deals. The shares changed hands at 10 sen apiece, an 11.1% premium to the 9 sen they fetched on the open market. At press time, filings did not indicate who the transacting parties were.

In December 2014, Metronic Global, which provides software and hardware for intelligent buildings, proposed a diversification into property development with the purchase of about eight acres in Kuala Krai, Kelantan, for RM9.8 million. Closing at 9 sen last Wednesday, the stock was up 5.88% for the year.

Over at The Media Shoppe Bhd (fundamental: 1.85; valuation: 0.9), some 15.77 million shares or a 1.81% stake crossed off market on May 20 and 21. The shares changed hands at 6.5 sen per share in three direct deals, which was 8.3% to 18.2% above the 5.5 sen to 6 sen they had fetched on the open market.

On May 22, The Media Shoppe announced its first-quarter results ended March 31. Its net loss widened more than 17-fold to RM1.3 million from RM77,000 in FY2014 due to higher operating costs.

Elsewhere, Bertam Alliance Bhd (fundamental: 1.35; valuation: 1.1) saw 9.9 million shares or a 4.79% stake traded off market on May 26. The shares were sold in a direct deal at 60 sen apiece, a 9.8% discount to that day’s closing price of 66.5 sen.

Incidentally, filings show that Tung Fong Hotel (SDK) Sdn Bhd had disposed of 9.9 million shares or a 4.79% stake on the open market on May 26 and ceased to be a substantial shareholder of Bertam. It had earlier emerged as a substantial shareholder after acquiring 17 million shares or an 8.2% stake on May 18. Andi Santriani Mohd Rida and Sudirman Usman were deemed interested in the stake.

Other filings with Bursa Malaysia show that managing director Lim Nyuk Foh raised his stake by 18.5 million shares or 8.95% equity interest on May 18. The 84 sen apiece Lim paid was 18.3% to 22.6% above the 68.5 sen to 71 sen apiece the shares fetched on the open market the same day. Closing at 66 sen last Wednesday, the shares were down 15.4% from the recent high of 78 sen on Jan 30 and 43.6% from its 52-week high of RM1.17 on July 25, 2014.

Meanwhile, Omesti Bhd (fundamental: 1.05; valuation: 0.9) saw 6.4 million shares or a 1.65% stake traded off market on May 25 in two direct deals. Some five million shares changed hands at 60 sen apiece, just above the then prevailing market price of 59 sen apiece. Another 1.4 million shares changed hands at 52 sen each, 13.3% below the 60 sen apiece the stock was going for on the market.

According to filings, Red Zone Development Sdn Bhd disposed of five million shares on May 25, leaving it with a 17.79% stake in the technology services company, formerly known as Formis Resources Bhd. Red Zone is owned by Raymond Tan, Wong Kit-Leong and Omesti’s executive director Monteiro Gerard Clair.

On May 21, some 2.5 million shares or 1.92% of Raya International Bhd (fundamental: 0.35; valuation: 0) changed hands off market in a single direct deal at 15 sen apiece. This was just below the then open market price of 16 sen. Filings indicate that one Tan Seng Hu sold 2.5 million shares on May 21, leaving him with a 4.48% direct stake and deemed interested in the 6.52% stake held by his father Tan Cheng Kiat.

Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Visit www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Malaysia Weekly, on June 1 - 7, 2015.

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