Chloe Tai Blog

DGB (0152) and DGB-WA - My Understanding Behind its Rise in Share Price

ChloeTai
Publish date: Wed, 03 Jan 2018, 03:53 PM
ChloeTai
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This is my blog.

Introduction

DGB Asia Berhad is a group of companies principally involved in providing innovative and comprehensive AIDC (Automatic Identification and Data Capture) solutions, software and engineering services to various industries.

Using barcodes or RFID (Radio Frequency Identification), TrekNet is a tracking software, designed for enterprises, to track and manage items, animals or people systematically and on a real time basis.

The company offers a wide range of data capture technologies, from basic 1D and 2D bar codes and smart card technology to state of the art, wireless sensor networks such as RFID (Radio Frequency Identification) technology.

With over 15 years of experience, DSC Group is a provider of innovative plastic card printing solutions, software and services to businesses that need to identify, track and manage critical information.

Over the years, DSC has served more than 1000 companies from industries such as government, retail, hospitality and healthcare. DSC clients are businesses that understand the needs to invest in a system or service, to improve productivity, customer relationship and business efficiency.

Identification Hardware
  • ID Card Printer
  • Bonus Card Terminal
  • Receipt Printer
  • Barcode Label Printer
Data Capture Hardware
  • 1D & 2D Barcode Scanner
  • Portable Data Terminal
  • Handheld Mobile Computer
  • Industrial ID Reader
Supplies & Accessories
  • Thermal Labels & Ribbons
  • Plastic Cards & Ribbons
  • Lanyards & Badge Holders
  • Cleaning Supplies For Printers
Services
  • Card Bureau Service
  • Hardware Technical Support
  • Event Registration System
  • Rental & Trade-In Of Hardware

My Understanding Behind the Rise of DGB Share Price

DGB-WA is supposed to expire on 22 April 2018. Its last trading day should be 12 market days before it expires (T + 3 plus 8 market days to process its conversion to the mother share), which is on 5 April 2018.

Let's take a look at the rise of SEACERA and SEACERA-WA close to the expiring date of SEACERA-WA (on 26 April 2017).

SEACERA-WA

SEACERA MOTHER SHARE

As we can see, market makers keep on pushing the price of SEACERA shares upwards so that shareholders of SEACERA-WA are willing to exercise their warrants, in order that the company can raise fund from the excercise. If the warrants were trading at a premium, who wants to exercise them. So, the market makers let the warrants to be traded at a discount close to its warrants' expiring date.

Likewise for DGB and DGB-WA. If DGB-WA continues to trade at a discount, the warrants' shareholders are more than willing to pay the 11 sen exercise price to convert it to the mother share. In this way, the company can raise fund.

Moreover, FINTEC GLOBAL BHD (formerly known as ASIA BIOENERGY TECNOLOGIES BERHAD) Is holding 9.1% of DGB shares.

FINTEC can make DGB looks like the chart of FOCUS DYNAMICS GROUP BERHAD, where FINTEC is holding 19.3% of its shares.

 

 

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