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This stock currently standing on its MA200. The stochastic indicator is in the oversold region with blue line moving on top of the red, indicating a buy signal from its traditional use. The same goes for the stochastic RSI indicator. There is a support at RM0.480 level.
Execution plan (Short term):
Entry: RM0.505
TP: RM0.525
CL: RM0.475
Although the company is doing fund raising for its capex, repay its bank borrowing and for the working capital of TM project, which is expected to dilute its earning per share (EPS), I view it as an initiative from the company to reduce gearing. There are only 2 sources of capital for the company, equity or debt. Their gearing is high, so it is unlikely they will go further for debt, so equity is the last resort and hence the fund raising. I would expect the impact to be more pronounced in the long term.
