BJFoods-Will It Generate Interest?

This is another sleeper share on Bursa KL. Except for a brief moment when it propelled itself beyond RM1 and more in 2011, it has stayed at the 99 sen mark and would graze the RM1 mark perhaps to RM1.03 sen. Then is will falter and stumble.

Recently, Berjaya Foods has obtained permission from Bank Negara on some warrant issue to foreigners but this has not stirred Rip Van Winkle from his golden slumber.

With the forthcoming rights issue and warrants approaching on nigh on the horizon,we should expect some action. At 65 sen per rights issue on the basis of 4 for 5 shares, it should attract given the current price of a discount of some 35 sen. To boot, there is an equivalent number of warrants given to be traded for value.

Given the impending de-listing of two food counters i.e. KFC and QSR Brands, BJFoods will now become the listed market leader. with the expansion into Indonesia, Kenny Rogers Restaurants (KRR) should bring in the needed revenue for BJFoods.

The purchase of the popular designer coffee outlet STARBUCKS in Malaysia will also provide the required fillip to shore up the revenue, profit and price of this counter.

Let us await news of the rights issue subscription.