Looking at the price chart of Yong Tai Bhd (YONGTAI), one would notice that the share price had been trending strongly from the RM0.200 – RM0.205 level.

According to market sources, this is partially due to the emergence of the new shareholders. But fundamentally, had we seen any changes for YONGTAI?

The quick answer will be NO.

In July 2022, YONGTAI had undergone a share consolidation of every 5 YONGTAI shares to be consolidated into 1 YONGTAI share. Subsequently, the company had a bonus issue of warrants to “re-attract” investors back to the company.

Generally speaking, stocks on Bursa normally go through share consolidation for the purpose of enhancing the share price inorganically.

Would you invest in a company that is more focused on share price rather than pushing for business?

For information, YONGTAI had RM121.5 million and RM135.3 million losses in Q3FY22 and Q4FY22 respectively, with a mere market capitalization of RM144.0 million at current juncture.

That means that the losses of YONGTAI exceeded the value of the company itself.

 If you do not know what is brewing in YONGTAI, it is better to stay aware than chasing after it blindly. Who knows when will the music chair game ends?