TECHFAST HOLDINGS BHD (-ve)
TECHFAST (Fundamental: 1.95/3, Valuation: 1.2/3) soared 15% to an intra-day high of 23 sen last Friday, before retracing to close at 22 sen. More than 1.5 million shares changed hands, almost 20 times higher than the volume for the preceding 200 days, on average, of 65,214 shares.

The company specializes in the manufacture and distribution of high precision computer components, electronic hardware and telecoms components.     

At end-April, Techfast proposed a private placement exercise, to raise up to RM2.75 million. The proceeds will be used to fund working capital — including the purchase of inventories — to expand its fastener business in the US and Europe as well as sales of rubber sheets and LED encapsulant products into China.

The company has not fared too well. Net profit declined to just RM0.15 million in FYDec2014 from RM0.74 million in 2013 even though turnover was flattish y-y. It last paid dividend for FY2013.

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