Excel Force MSC

Excel Force MSC

Postby winston » Sun Jan 21, 2018 9:58 pm

not vested

EXCEL FORCE MSC BHD

By Tee Lin Say

One stock that has been on a virtual uptrend in 2017 is financial software player Excel Force MSC Bhd (Eforce).

This stock started on its upward trajectory following the emergence of new owners in the company – namely that of MyEG Services Bhd in 2016. Since then, it hasn’t looked back.

On a one-year basis, the stock is already up 126.16%.

Thus, with such elevated valuations, why should we look at it in 2018?

For starters, the major shareholders of Eforce has been accumulating the stock since October 2017. As of Dec 12, Asia Internet Holdings Sdn Bhd has a 19.94% stake in Eforce.

For some history, Wong Thean Soon, the managing director and single largest shareholder of MyEG emerged in the company when he acquired an 18.7% stake in Eforce on April 26, 2016 via his vehicle Asia Internet Holdings.

Subsequently, the appointment of Datuk Norraesah Mohamad as executive chairman of Eforce on Feb 10, 2017, was a sign that Eforce could be a second MyEG. Norraesah is also the chairman of MyEG.

Then during Budget 2018 in October last year, Eforce caused excitement when the government said it was planning to introduce the Alternative Trading System. Some quarters see Eforce as a beneficiary of this new trading bourse.

The government said the ATS would be introduced subject to compliance to all requirements and regulatory standards. This would enable efficient and significant transactions.

ATS is a market venue to bring together purchasers and sellers of securities. It originated in the US as an alternative to traditional exchanges like the New York Stock Exchange and Nasdaq in trading of securities.

Since 2001, more than 50 countries have launched the ATS, providing investors with choices in execution venue. LiquidNet, Chi-X and BATS Global are the major operators.

Barring its new businesses, Eforce is presently the market leader in Malaysia for the provision of financial services business solutions where it currently has 90% of the stock broking Public Gallery Display System and 70% of electronic client ordering system market share in Malaysia.

For the nine months to Sept 30, 2017, Eforce recorded earnings of RM4.93mil, which was only a slight improvement from the RM4.08mil it recorded in the same period of the previous year. Revenue was almost unchanged at RM17.39mil.

At the stocks last price of RM1.54, it has a market capitalisation of 637.15mil and has a price earnings ratio of 97 times.

Source: The Star

https://www.thestar.com.my/business/bus ... 85vcWrw.99
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