Catcha Digital Bhd has been moving upwards above its resistance levels in recent weeks. The counter is likely to continue its bullish trend after crossing the 41 sen resistance level, sparking a positive momentum.
The stock fell to a year low of 27 sen March this year, but rose to 47 sen in July. There is still a lot of catching up to do before it surpass its year high of 60 sen seen last September.
The digital media company has been catching lots of attention for its rapid growth through various acquisitions late last year. Positive sentiments also stemmed from its recently completed regularisation plan to exit GN2 status.
Last year in November, Catcha inked a letter of intent to buy a 51% stake in digital agency DS Services Sdn Bhd, or better known as Digital Symphony, for RM21.17 million. Catcha said the consideration payment will be split into two tranches over two years, payable upon Digital Symphony achieving a profit guarantee of audited profit after tax of RM4 million for the first year post-acquisition, and RM4.3 million for the second year.
Digital Symphony is a Malaysia-based data-driven digital agency that operates in Malaysia and Singapore. It provides differentiated performance marketing solutions to clients using its proprietary software and analytics tool.
Founded in 2014 by Kuhan Kumar Palaniappan, the company serves a broad range of enterprise clients with a focus on the property development sector. A month earlier (in October), Catcha announced the acquisition of two digital media companies in a bid to build itself as a leading digital group in Southeast Asia.
Catcha said it is investing RM3.43 million to buy the remaining 49% stake in Ittify Sdn Bhd, an influencer platform in Malaysia which serves more than 100 brands with 7,000 influencers on its platform. The group already owns the other 51% stake in Ittify.
The second acquisition involves Catcha buying a 30% stake in Headline Media Sdn Bhd for RM1.24 million, with an option to acquire another 50% stake within 36 months.
Headline Media owns and operates WeirdKaya, an English language website in Malaysia, as well as emerging Malay and Chinese language sites, WeirdKaya BM, LokLokWords and EzLokal.
Naturally, it is faster for Catcha to buy existing businesses to help its business grow. However, it may take a while before these businesses turn profitable (if they are not yet making money). But given the heightened interest in the counter, perhaps investors can catch the drift.
Created by zaclim | Aug 16, 2024
Investors should be happy that pole maker Mestron Holdings Bhds seeing a strong rise in its share price in the past 5 days, igniting hopes of sustained upward momentum
Created by zaclim | Aug 15, 2024
AMMB Holdings Bhd has seen its share price tumbled sharply to RM4.22 after hitting a high of RM4.58 in August 1. Signs indicate more upside ahead.
Created by zaclim | Aug 14, 2024
Mikro MSC is adding another company in its portfolio and this would provide a much needed boost to its financials. The counter is already on upward momentum and signals are clear for further upside
Created by zaclim | Aug 12, 2024
RCE Capital Bhd has been increasing to close at RM3.20 on Aug 9. It rose to a high of RM3.40 in January from a low of RM2.21. The counter could move upwards following a consolidation phase.
Created by zaclim | Aug 12, 2024
Shin Yang Group Bhd has been treading at its year high of 98 sen recently and signs indicate it could cross the RM1 hurdle. With business diversification, the upside looks good
Created by zaclim | Aug 08, 2024
Freight forwarding and aerospace logistics provider AGX is slowing making its way up as share price climbed to reach a high of 54 sen recently. Is there more room for the counter to trend higher ?
Created by zaclim | Aug 07, 2024
Vitrox has secured purchase orders upgrades on 3D checking light sources with AI detect features for packages as well as new Chinese original equipment manufacturers (OEM).
Created by zaclim | Aug 06, 2024
Poh Kong Holdings Bhd has shown signs of further uptrend in its share price. With the recent market selldown, this is an opportune time to get your hands on the jeweller.
Created by zaclim | Aug 05, 2024
SDS Group Bhd managed to surge to a record high of RM1 recently. Although there are doubts if the share price uptrend will continue, signs indicate that the counter may see further upside