This article first appeared in The Edge Financial Daily, on October 5, 2016.

 

Lay Hong Bhd (-ve)

SHARES in Lay Hong Bhd (fundamental: 0.55/3, valuation: 0/3) triggered our momentum algorithm for the first time this year as its share price gained by 3.98% or 42 sen to RM10.96 with 256,100 shares changing hands. This is about five times its 200-day average volume of 52,458.

The surge in share price followed the announcement of the bonus issue of up to 66.4 million new ordinary shares of RM1.00 each in Lay Hong on the basis of one bonus share for every one existing Lay Hong share held on Oct 14, 2016. The company also announced a share split involving the subdivision of every one share held on Oct 14 into five new ordinary shares.

Lay Hong also proposed the issue of up to 332.1 million free warrants on the basis of one warrant for every two subdivided shares held after the bonus issue and share split.

Year to date, the counter has already gained 74.52% and more than doubled from a year ago.