The Potential 10xMulti-Bagger EMS Company- SCOPE (0028)

Dear readers, welcome back to “The Huat Project”. Today we would like to elaborate about The Potential 10xMulti-Bagger EMS Company- SCOPE (0028).

Introduction

SCOPE(0028) main nature of business involves in the Electronic Manufacturing Services (EMS), Printed Circuit Board (PCB) & Palm Oil. The Electronic (EMS & PCB) accounts approximately 67% of the group. 

On 10 Apr 2019, INVENTEC APPLIANCES CORP emerged as a major shareholder in SCOPE(0028). https://www.klsescreener.com/v2/announcements/view/110492 .

INVENTEC is a company with market cap of $96B.

Fundamental Analysis

SCOPE (0028) have been a Turnaround company. They have been recording profit since year 2021, due to better performance from their EMS Segment, with higher volume sold (meaning more customer). Also SCOPE (0028) is a Net Cash Company with 2sen/share.

Corporate Exercise & News Analysis

Recently, SCOPE (0028) raised funds via Right Issues. What is interesting about this exercise is that INVENTEC has entered in a “willing buyer willing seller” with SCOPE (0028) Bosses, Lim Chiow Hoo & Lee Min Huat, and have agreed to buy 36.4million of Rights at a cost of RM0.045. With the conversion price of RM0.175, the cost of INVENTEC for this exercise will be RM0.22/share or value RM8million.


https://www.theedgemarkets.com/article/usbased-speaker-maker-sonos-inc-grow-operations-malaysia-%E2%80%94-report

Also is there any possibility that SCOPE (0028) be able to obtain this contract from SONOS INC to grow their operation in Malaysia? ;)

Technical Analysis

SCOPE (0028) is on an uptrend. Recently it has finished its correction phase (mainly due to overall market condition), without affecting its fundamentals. SCOPE(0028) has BROKEOUT with Convincing Volume. SCOPE (0028) support is at RM0.22 (cost of the INVENTEC) and the resistance is at RM0.335 in the near term.

The Reward to Risk ratio for short term trade is approximately 2.5 times.

Conclusion

We are in the view that SCOPE (0028) is a very good turn-around company. With strengthening their relationship with INVENTEC, SCOPE(0028) business prospect is shining bright like diamond. Short Term trade poses good Reward:Risk Ratio of 2.5. We have seen many good companies likes FRONTKN, JHM which share price rose from 20sens to their current price (more than 10X).

We Strongly Believe SCOPE(0028) will be the next 10X Multi-bagger stock in the medium term.

What will you do? 

DISCLAIMER: This post serves as an educational analysis and is never meant to be a buy/sell call or recommendation. Please do not “don't ask, just enter” .Investors must always do their own due diligence before making any investment decisions. The author of this post is not liable in any way for any decisions made by any individual.