TSM GLOBAL BHD ("TSM") surged to a high of RM4.20/share in the morning session today after it proposed a one-for-one bonus issue.
At close of market, it was unchanged at RM3.93/share.
Although bonus issue is merely an accounting entry involving moving cash from "reserves" to "equity capital" in balance sheet of the company, it helps to improve liquidity and more importantly, it gives the "feel good effect" to its shareholders as a form of "reward to its shareholders".
Hence, its price has rose 22.8% from our initial recommended price of RM3.20/share.
We reiterate that investors may consider to take profit due to the steep rise in such a short period even though the fundamentals of this company is still intact.
At close of market, it was unchanged at RM3.93/share.
Although bonus issue is merely an accounting entry involving moving cash from "reserves" to "equity capital" in balance sheet of the company, it helps to improve liquidity and more importantly, it gives the "feel good effect" to its shareholders as a form of "reward to its shareholders".
Hence, its price has rose 22.8% from our initial recommended price of RM3.20/share.
We reiterate that investors may consider to take profit due to the steep rise in such a short period even though the fundamentals of this company is still intact.
No comments:
Post a Comment