The Mother Stock of 2007Look no more. The make-over of Welli-Multi Corporation (WMC) has already started and pushing into higher gear. Bold and beautiful. Hats off to the new management of WMC! First it was the Hadhari Cattle Industry buy-in. Now is the overseas foray into China.
WMC looks like it is in undue hurry-morphing simultaneously at both the local and global levels.
CEO Rashid Tang, in a telephone interview, informed that WMC is negotiating for at least a 30% stake in Chi Feng Dadi Basic Industry Co. Ltd.(Chi Feng). The price is being actively negotiated, so it seems. Rationale for the acquisition: to diversify the income base of WMC.
A closer look at Chi Feng shows us that it is involved in the power industry, toll road development and gold mining. Capitalised at 2 billion renminbi, it is listed on the China Stock Exchange and is trading currently at 6 renminbi per share. The trading turnover is 1 billion renminbi annually.
On the power generation aspect,Chi Feng operates a plant in Inner Mongolia with a capacity of 10MW. This will increase by 60 MW every two years until the year 2020. It is fueled by coal which is a abundant and cheap in Inner Mongolia.
On the gold business, Chi Feng is mining and processing 10 tonnes of gold yearly. It will be increasing output to 20 tonnes per annum in two years' time.
Rashid did not elaborate on the toll road development as yet. More fodder for the press later, I suppose.
WMC is certainly full of surprises. Expect more until the official launch of the NCER. Right now, the next good news would be the SC's approval for its reports to be made public. Another trigger to push the price up to Mount Zion.
Let us take out the crystal ball and tarot cards for some gazing and reading. What I think may be in the cards for the stock's price today.
The best scenario today would be limit up in the morning to RM2.28. If there is a follow through, it will limit up again to RM3.04 by the day's close. The intermediate scenario-it goes up to RM2.28 but close off best in the afternoon, possibly to end at RM2.66 on profit taking. The worse scenario would be to limit up to RM2.28 and expect profit taking to come in the afternoon. The share could end around RM2.00.
Well, anything can happen in Welli. If the SC should allow its reports to be released this week, expect bumper gains on WMC.
Viva WMC!
Heartsong
WMC looks like it is in undue hurry-morphing simultaneously at both the local and global levels.
CEO Rashid Tang, in a telephone interview, informed that WMC is negotiating for at least a 30% stake in Chi Feng Dadi Basic Industry Co. Ltd.(Chi Feng). The price is being actively negotiated, so it seems. Rationale for the acquisition: to diversify the income base of WMC.
A closer look at Chi Feng shows us that it is involved in the power industry, toll road development and gold mining. Capitalised at 2 billion renminbi, it is listed on the China Stock Exchange and is trading currently at 6 renminbi per share. The trading turnover is 1 billion renminbi annually.
On the power generation aspect,Chi Feng operates a plant in Inner Mongolia with a capacity of 10MW. This will increase by 60 MW every two years until the year 2020. It is fueled by coal which is a abundant and cheap in Inner Mongolia.
On the gold business, Chi Feng is mining and processing 10 tonnes of gold yearly. It will be increasing output to 20 tonnes per annum in two years' time.
Rashid did not elaborate on the toll road development as yet. More fodder for the press later, I suppose.
WMC is certainly full of surprises. Expect more until the official launch of the NCER. Right now, the next good news would be the SC's approval for its reports to be made public. Another trigger to push the price up to Mount Zion.
Let us take out the crystal ball and tarot cards for some gazing and reading. What I think may be in the cards for the stock's price today.
The best scenario today would be limit up in the morning to RM2.28. If there is a follow through, it will limit up again to RM3.04 by the day's close. The intermediate scenario-it goes up to RM2.28 but close off best in the afternoon, possibly to end at RM2.66 on profit taking. The worse scenario would be to limit up to RM2.28 and expect profit taking to come in the afternoon. The share could end around RM2.00.
Well, anything can happen in Welli. If the SC should allow its reports to be released this week, expect bumper gains on WMC.
Viva WMC!
Heartsong
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