Monday, October 31, 2011

Stock Pick: ENG (8826), a potential quick gain of 23% within next few months.

ENG, 8826. This morning price between RM1.51 to RM1.65.

Potential quick gain of 23% (RM2.00 / RM1.60) within next few months as

The major shareholder of ENG had proposed to acquired the entire business & undertaking of ENG for an amount equivalent to RM2.50 per share in July this year (here). 

However, as approx 40% of the Group turnover came from Thailand, announcement by the Board in early October 2011
We regret to announce that the Company’s wholly-owned subsidiaries, Engtek (Thailand) Co., Ltd. (“ETCL”) and Altum Precision Co., Ltd. (“APT”), both located at Ayutthaya, Thailand had temporarily shut down their operations due to severe flood condition in Ayutthaya, Thailand
Due to this natural disaster and other issues, the privatisation plan is postponed but I do hope that the acquisition price, even adjusted down from RM2.50 to RM2.00 - I will still make a decent gain of 23% over next few months as I bought at RM1.60 today.

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