History is repeating....Shares of Techbond Group Berhad jumped to a record high of RM1.84 today after annoucing a bonus issue on the basis of five bonus shares for every four existing shares.

Looking at the current market sentiment, market participants love bonus issue and a post announcement rally looks invicible for TECHBOND! I believe the long term growth acceleration of Techbond will be factored in by the market to price the share higher. I have placed a target price of RM 2.50 for techbond in my previous article.

https://klse.i3investor.com/blogs/topstockpick/2021-02-07-story-h1540990057-Techbond_TP_RM_2_50_Rewarding_Shareholders_with_Bonus_Issue_Amid_Robust.jsp

Recently we have seen many solid companies rallying after their announcement of bonus issue. Although bonus issue would not affect the intrinsic value of the companies, it allows companies to reward loyal shareholders as well as conserve cash for expansion.

Here are some of the recent good examples of fundamental counters announcing their bonus issue:

1) SCIB

SCIB announced its bonus issue on 15 January 2021 and the share price went up 121% within a month.



2) KPOWER

KPOWER announced its bonus issue on 29 December 2020 and the share price went up more than 50% since the announcement and corporate action.

3) EITA Resources Berhad

EITA announced its bonus issue on 14 January 2021 and the share price went up more than 60% within a month!