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I would like to refer to the latest gapping down selling down pressure on HTPADU which had definitely caught my attention as this counter had seen many corporate development as well as entry and exit of prominent figures in the shareholding.
As we can see, on Monday (27th May 2024), HTPADU share gap down and sell down vigorously on 2 news that is available to the public.
The 1st news is the official news, HTPADU pending court trial is postponed to another date to 11th June 2024.
The trial is between PERTUBUHAN KESELAMATAN SOSIAL (PLAINTIFF) VS HEITECH PADU BERHAD (DEFENDANT)
The 2nd news is the rumoring news from news portal, stating that HTPADU had withdrawn from the tender of NIISE, hence leaving THETA and DNEX in the forefront of the fight.
To understand the case, HTPADU gain heavy attention previously which saw share price rocketing from a lowly 80 cents to more than RM 3.00 is due to the heavy anticipation that HTPADU is going to win the NIISE contract which is worth billions of ringgit.
The anticipation is backed up even more with 2 influential shareholder
1. WONG THEAN SOON - founder and owner of MYEG, which is operating the MYIMMs system for more than 10 years experience. The NIISE is an upgrade of the system which will grant faster processing.
2. Datuk Farhash Wafa Salvador - The ex-aide of current prime minister, which is also currently serving as Chairman of Excelforce MSC (another vehicle of WONG THEAN SOON). However, Datuk Farhash had since relinquished all his stake in Rosetta to the sole owner, Sultan of Kelantan.
The share price had seen rocking movement from RM 3 dropping to RM 2 and going back up to RM 2.50 before the damning news piece of HTPADU being out of the NIISE project in a form of rumor.
As a market investor what do you think of such aggressive movement of the share price, coupled with corporate development and news coverage ranging from official news and unofficial news. Do note that until now, the company is still keeping quiet on whether they are pulling out from the tender or not. Nobody knew except the bosses.
What Target Invest think about this?
Opinion : Target invest analysis
Htpadu which had been trading at rm 2.50 suddenly got gap down and sell down accompanied by 2 news
1st news - unofficial rumor news by newsportal nanyang and sinchew on htpadu potential drop out from NIISE, leaving only Theta and Dnex
2nd news - official news from Htpadu bursa website on High court writ of summon on past issues concerning pertubuhan keselamat sosial reschedule hearing (release on friday evening after trading hour)
From what we can see is
1. Theta and Dnex is lacking of the momemtum needed to justify the NIISE contract. (Theta and Dnex gap up sell down)
2. HTPADU still have influential shareholder Wong Thean Soon, whose acquistion price for more than 20% of the block share being priced at rm 2.03
3. There is no panic selling in Cuscapi and MYEG share.
4. HTPADU did not officially announce that they had pulled out from NIISE tender, it is just newsportal rumors.
What can happen next?
1. If the news is true, current price is still below Wong thean soon rm2 stake, and it is already priced into the news that HTPADU is not going for the NIISE contract.
2. Htpadu can remain silent until the official reward of the the NIISE contract and share price might possibly go up again on the news.
Date to look out for will be 11th June 2024, which is the date of the case between Htpadu and Pertubuhan Keselamatan Sosial, where a favorable result will see HTPADU going up again.
In conclusion
Target Invest think that HTPADU is potentially still in the NIISE tender. With Wong TS stake in HTPADU, it means alot more as WONG TS,s MYEG had all the experience from more than 10yrs to make NIISE better.
The current price of RM 1.90 range is already factored in for the idea that HTPADU is not going for the NIISE contract, however, it remained as a rumor. If it turnout to be HTPADU is the winner, or part of the contract winner, then it will be a good catalyst for it to see it's share price going up again.
All the speculation will be known at the end of June 2024 when the result of the tender is announced. Till then, we will see a volatile trading for the next 3 weeks.
What do you think?
IMPORTANT NOTICE
Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.
