Oriented Media Group Bhd (+ve)
THE usually thinly-traded shares of OMedia (Fundamental: 1.2/3, Valuation: 0/3) rose 6.1% to an all-time high of 35 sen yesterday. The stock was first picked by our system on March 11 at 18 sen.
OMedia, which provides information technology related products and services, has been loss-making for the last five years. For 9MFYJun2015, it posted a lower net loss of RM285,000 on the back of RM1.2 million in revenue.
Yesterday, it convened an extraordinary general meeting to seek shareholders’ approval for a proposed rights issue with free warrants.
To recap, OMedia plans to raise up to RM42.7 million on the basis of 4 rights shares with 3 free warrants for every 2 shares held.
Half of the proceeds will be channelled 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.
This article first appeared in The Edge Financial Daily, on July 3, 2015.