LTKM RTO: Any Opportunity For Retailers?

LTKM, a Bursa-listed company and one of the most famous chicken eggs producer in Malaysia, has decided to dispose all its existing businesses for RM158.83mil.

Besides the poultry business which contributed 96% of its revenue in FY21, LTKM is also involved in sand mining activity as well as property development in the past.

Upon disposal of all its subsidiaries, LTKM will become an empty shell. It has proposed to acquire 100% equity interest in Local Assembly Sdn Bhd for RM336mil.

Local Assembly is a Johor-based EMS (Electronics Manufacturing Services) provider. It's not only profitable, its revenue and profit are growing tremendously in the past 3 years.

After the acquisition, Local Assembly will be the only subsidiary of LTKM, and LTKM will change its name to LA Technology Bhd.

One week before LTKM's shares trading was suspended for this announcement, its share price has already been pushed up by 23% from RM1.30 to RM1.60 by insiders.

Do retailers still have a chance to grab its shares at "fair price" after the resumption of trading tomorrow?

My Portfolio Mac22

 

Summary For March 2022

Portfolio @ End of Mac22

After a challenging month of Feb22, Mac22 was a volatile month for tech-related stocks in Bursa in which they fell heavily in the first week but then staged a V-shape recovery.

I just added a bit of Krono and JHM during this period of time. I still haven't averaged down on MI as its share price has already rebounded strongly before I made my move.

I planned to add MI's shares at RM1.50 but it didn't reach this level even though it was close.

In Mac, my portfolio suffered a 2.5% loss. Year-to-date the loss has widened to 3%.

Oil & gas stocks especially upstream Hibiscus have the exact opposite fate as the tech stocks.

The share price of Hibiscus rallied since the end of Jan22 from RM0.88 to reach RM1.38 on 9th Mac22, before falling 26% to almost RM1 in the next 4 days.

I sold my second batch of Hibiscus shares at RM1.28. I keep the rest to see how the market will respond to its upcoming quarter result which includes approximately 2 months contribution from acquired Repsol assets.