In Axcapital’s last article, https://klse.i3investor.com/blogs/klsebullrun/2021-09-25-story-h1571732664-Fajarbaru_Builder_7047_Would_you_like_to_double_your_money_in_3_months_.jsp

we argued that Fajar (7047) could be a short-term trade that could potentially double before end-21

Today, we take a look at previous case studies of what happens to share prices of fundamentally sound companies, AFTER the results of their rights issues are announced.

There were three examples of such cases in the past year, namely Scope Industries, Rex Industry and TAFI. In each of these cases, one month after the announcement of the oversubscription rates of their respective rights issues, their share prices went up between 33-105%!

On Friday, 15 Oct after market close, Fajar announced a whopping 190% oversubscription of its rights issue! This far exceeded what Axcapital expected the rate to be. This further reinforces our earlier conviction in our previous article that the stock could potentially double before end-2021.

Even better is Axcapital’s observation that in the past two weeks alone, Tan Sri Datuk Tan Kin Yan, acquired another 1m shares of Fajar! As our mantra goes, “When insiders buy big, we must buy along!”

In addition, Fajar is in the right sector-in-play now, ahead of a breakout in the KLSE Construction Index to a year high just ahead of the budget 2022 announcement  on 29 Oct.

Disclaimer: The views presented  herin does not constitute a recommendation or solicitation to buy or sell the securities mentioned herein. All information and opinions expressed are subject to change without notice. The publisher may from time to time have a position in the securities mentioned. This publication is based on pulicly available information and any information from sources are believed to be reliable but we do not make any presentations as to its accuracy or completeness.