YGL Convergence Bhd (+ve)

Trading of shares in YGL Convergence Bhd (fundamental: 2.25/3, valuation: 0/3) triggered our momentum algorithm last Friday for the first time this year.

The stock closed up 13.79% or two sen at 16.5 sen, after 2.54 million shares were traded, over 17 times more than its 200-day average trading volume of 144,430 shares.

YGL, an enterprise solutions provider, announced late December last year a proposal to undertake a private placement of up to 23.8 million shares or 10% of its total issued shares to raise up to RM3.09 million, based on an issue price of 14.16 sen per share.

Of the total proceeds, YGL intends to utilise up to RM1 million for business expansions, another RM1 million for research and development, RM1.01 million for working capital, and RM90,000 for expenses related to the private placement.

YGL said it expects to complete the corporate exercise in the first quarter of 2020.