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Fat Profit Fat Wealth

Author: fatwealthprofit   |   Latest post: Mon, 20 Nov 2017, 09:12 AM

 

HWGB will PROSPER ahead. Get ready for the RALLY!

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Hi Guys,

 

 

I am sure u aware of latest announcement of HWGB. It is unexpectedly POSITIVE news for both HWGB and investors.

 

It is very clear these multiple proposals will be benefitting share price of HWGB from short-term to long-term.

 

This will be game changer for HWGB’s earnings prospect. The earnings would be sustainable and stronger than before.

 

Link:http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=83223&name=EA_GA_ATTACHMENTS

 

U can open link above to read details about the proposals.

 

 

 

From the proposals above, my comments below are divided accordingly:

 

a) Reducing liquidity by share consolidation to make the stock less volatile would definitely boost the share price to be goreng even higher than current price level. Less liquidity would make the goreng job for operators easier than before as less crowd or number of shares blocking at resistance level.

 

Evidently, look at Hubline. The Company consolidated its no of shares from 8 billion if I recall correctly to 1 billion now. See the share price easily can goreng from 6sen to 20sen, apart from the news.

 

For HWGB, it's no of shares will consolidate from 998 million to 249 million only. This is very light and will be even easy to goreng than Hubline or any hot penny stocks have been goreng recently like Palette, Keyasic, PUC or as such.

 

After the consolidation done, u may find it hard to accumulate this stock anymore. U won’t see the ceiling. It could be all the way up.

 

Surprisingly, I just realised this stock is M&A Securities stock. Aha, goreng is surely on the cards.

 

# if u have 4 shares in HWGB or warrants right now, it will become 1 share later on.

 

 

b) The proposed diversification into a duty and tax free shop in Genting Highlands resort is not new news. However, the new thing is the Management has revealed that this new business may potentially contribute more than 25% of the net profits.

 

 

 

In fact, I already told before in my previous article here, https://klse.i3investor.com/blogs/fatprofitfatwealth/137302.jsp. I mentioned that this new business would potentially help HWGB to generate more profit going forward.

 

 

 

 

 

 

 

 

 

Now who has the last laugh? Literally, I was right again.

 

In addition, if they are unable to secure the license to operate duty freethey can still operate as a tax-free store.Therefore, no harm to its earnings prospect.

 

 

 

 

c) Private placement for the better future earnings.

 

 

 

The Board intends to undertake the Proposed Private Placement to enable the Group to raise funds without incurring additional interest costs associated with bank borrowings or other debt instruments.

 

 

The main objective of the Private Placement is for the Group to address the Group’s financial concerns as well as to diversify into business opportunities of growth to reduce the Group’s dependency on its existing businesses in the manufacturing of moulded power supply cord sets and trading of wires and cables.

 

This would enhance its earnings further and thus, also reducing accumulated losses in the balance sheet.

 

 

 

Conclusion

 

Like I mentioned many times, the Company is on right track to see better earnings. The completion of these proposals could be within a short period of 2 months only!

 

So, whoever makes an early move, they will be the one gain the most!

 

Pre-shares consolidation, my view is if I were to apply 3x higher of HWGB's book value of 6sen, it could make out 18sen worth.

 

If other penny stocks can be goreng more than 3x of PBV at least such as Palette, DGSB, CUSCAPI, why not apply to HWGB too? Fair enough.

 

They are all similar as penny- stock like and stronger earnings prospects.

 

They are also few people kept mentioning HWGB to LIMIT UP with TP 45sen given by Dato Lim. I am not sure how concrete it is. It is up to u to believe it or not.

 

 

 

 

 

 

 

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Labels: HWGB

Related Stocks

Chart Stock Name Last Change Volume 
HWGB 0.06 +0.005 (9.09%) 2,275,100 

  jincheah likes this.
 
ramunia Really so good?????Hahaha...
15/11/2017 06:35
Beza You are caught by the consolidation. Later it goes down to 6 cents again!
15/11/2017 08:27
Beza Recommend you,fatwealthprofit, to buy the entire private placement shares so that you can "huat".
15/11/2017 08:30
CharlesT http://www.bursamalaysia.com/market/listed-companies/company-announcements/4996341

2016 Rights issue 1 for 1 at RM0.08 with 0.8 free warrant

2017 Shares consolidation of 4 into 1

2018 ???????
15/11/2017 08:35
fatwealthprofit Good for accumulation.

We will see who will have the last laugh again ;-)
15/11/2017 08:42
ktsk88 hope it can limit up to 0.45sen
15/11/2017 13:34
fatwealthprofit The selling is just noise, usually by stupid investors. Do they understand the business or potential earnings, nor corporate exercise....

Well, noise is still noise, soon or later, the share price will reflect fundamental. Therefore, it MUST GOES UP.
15/11/2017 14:46
kingcobra TO SEEK CHEAP PUBLICITY?????????
15/11/2017 15:07
stockswizard Unlike other penny stocks, HWGB will be having smaller no of shares. Easy to goreng sampai LIMIT UP. Woohoo...
16/11/2017 21:03
Sunshine the big guys stuck with huge volume cant shake it off now.. don't be cheated once they sold off their shares, it will have free fall b4 consol... like kgroup.. buy after consol.. kekeke..
16/11/2017 21:23
fl888 Dufry International will fry HWGB tomorrow ?..
16/11/2017 22:35


 

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