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Three Shares That Beat the Market Today

The Straits Times Index (SGX: ^STI) dipped by 0.6% to 3,194 points after being dragged down by 19 of the index’s 30 constituents that ended the day in the red. Meanwhile, only five other blue chips had made some gains with most of the action taking place outside the index.

Let’s take a look some shares that managed to beat the market.

M1 (SGX: B2F) inched up by 0.3% to S$3.45. A week ago, the telecommunications operator revealed that it would be announcing its first quarter results for 2014 next Monday on 14 April 2014. In M1’s latest full-year earnings release for 2013, the company mentioned that it “estimate[s] moderate growth in net profit after tax for the year 2014.”

This bodes well for M1’s upcoming earnings release in terms of showing profit growth though investors would only know for sure when the numbers are actually sent in.

JK Tech Holdings (SGX: 5TS) gained a massive 243% to S$0.515 today after making a few important announcements last Friday.

The first deals with the sale of shares to oil & gas outfit Ezion Holdings (SGX: 5ME) and the investment holding company SF Ventures Pte. Ltd. Ezion would be subscribing for 42 million new shares of JK Tech at a price of S$0.09 each while SF Ventures would be buying 13 million new shares at a price of S$0.135 each. In addition to subscribing for shares, Ezion and SF Ventures were also granted 260 million and 65 million options each from JK Tech which carries an exercise price of S$0.09. These options would expire 5 years after the date of their issue (it’s worth noting that these options are now way “in the money” and could reap a great profit for both Ezion and SF Ventures, assuming JK Tech’s share price can at least maintain at its current level before the options expire). By way of comparison, JK Tech had around 66 million outstanding shares prior to the announcements made last Friday.

The next important announcement revolves around the private placement of 19.963 million new shares of JK Tech, underwritten by Maybank Kim Eng Securities Pte Ltd (a brokerage firm), at a price of S$0.135 each.

The last important announcement is perhaps of the biggest concern for shareholders. JK Tech’s currently in the business of providing systems integration and the supply and delivery of information technology products. However, the company thinks it “may face challenging business conditions in light of the shortage of qualified staff in the market.” Due to that and more, it’s proposing to enter an entirely alien line of business: the exploration and production of oil and gas. That also explains the entry of Ezion Holdings into the fray – the company would become a controlling shareholder of JK Tech after the subscription, assuming it also exercises all its options.

In any case, the aforementioned announcements are all subjected to shareholders’ approval, which will be sought in an Extraordinary General Meeting (EGM) that will be convened soon.

CSE Global (SGX: 544) rounds up the trio with its shares up 3.4% to S$0.61. The provider of integrated solutions to the automation, telecommunications and environmental sectors had revealed last week that it had appointed a new chief financial officer (CFO) in Eddie Foo Toon Ee.

Foo would replacing the outgoing Alan George O’Reilly who announced in late Feb this year that he would be ending his stint as CFO on 31 May 2014. O’Reilly had only just taken over his current post back in August last year but had decided to “pursue other career opportunities.”

With regards to Foo, CSE Global’s board had commented that he “has strong experience in senior financial management positions over the past 10 years in ECS Holdings Limited [an information and communications technology outfit]”.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Chong Ser Jing doesn’t own shares in any companies mentioned.