Company Background:

CONNECT is an investment holding company where primary activities of its subsidiaries are design, manufacture, service, sales and marketing of cables, wires, connectors and related products. Main export customers are in US and China.

Share Price Movement:

CONNECT share price started took a tumbling more than a year ago, from a high close to 0.30 went to rock bottom at 0.085 about six months ago. The reasons were losses in quarter reports and company announced right issues. However, the share price starts to climb up and has been in consolidation mode in a range of 0.11-0.12 for almost 3 months.

Positive:

1)      Contract award of manufacturing HDMI devices starts in 2017 for two years.

2)      Team up with VENUS, a well established group in US to distributes manufacturing products

3)      Emerges of new investment fund in ACE CREDIT group portfolio and Mr.Chang Choon Ming around Sept 2016

4)      Expects benefit as approved vendor for Technicolour Cisco and license of Apple MFI products.

5)      RM20 million manufacturing capacity expansion in China by end of 2016

Negative:

1)      Lower gross profit margin despite higher revenue.

2)      Highly depandent on its subsidiary, Rapid Conn.

A dark horse in 2017 ?

Trade at your own risk.

Hopefully, AllWin.