K-STAR Sports Ltd, which was listed in Bursa Malaysia on June 4, saw its share prices sag to its lowest point of 45.5 sen on Friday, leaving a question for the market on whether the stock will drop further or whether it is the right time to enter the market.
The counter shot to a high of RM1.06 on Nov 29 before falling on Tuesday. Its closing price of 45.5 sen saw its share price drop by 57% from its peak.
Analysts believe that the continuous selling could partly be due to the upcoming lifting of the six-month moratorium imposed on K-Star promoters and other shareholders who had emerged before its initial public offering (IPO).
Its IPO was priced at RM2.15 a share but it undertook a share split, where one ordinary share was subdivided into three. After the adjustment, the fall in price was not so apparent.
However, a few major developments are coming up for the company, which includes the expansion plan by its wholly owned subsidiary by setting up six new wholesale outlets in northern China.
The company had also proposed to implement a sponsorship of a depository receipts programme in Taiwan involving the issuance of Taiwan Depository Receipts.
For the third quarter ended Sept 30, the company registered a net profit of RM14.4mil, 27% higher than RM11.3mil in the same period last year. - by By Lee Kian Seong
The comments above do not represent a recommendation to buy or sell.
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