SUGAR Tumbles And Lost Sweetness

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Nov 06 2006
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Loss-making Sugar Bun Corporation Bhd (SUGAR : stockcode 7036), which was queried by Bursa Malaysia on Oct 30 following the recent surge in the prices of its securities today tumbled by almost 30% (dropped by RM 0.88) from last Friday’s closing of RM 2.94 to RM 2.06 at lunch-hour closing wiping out almost RM 96 million of it’s value.

As expected, stocks which are not fundamentally sound are the most vulnerable. Furthermore the stock with 109 million floating shares are easy target for speculators (to make money) who are preying on the easy-target man-on-the-street. I was really cautious and uneasy with the newly announced exercise by Sugar.

Nevertheless people who jumped in earlier and managed to control their emotion and made money by profit-taking should be smiling now.

Always remember “Bulls & Bears make money but Pigs get slaughtered”

Sugar Bun Corporation Berhad is an investment holding company engaged in the provision of administrative, management and marketing services and franchise operation. The Company operates in three business segments: restaurant and franchising operations, general trading of machinery and spare parts and phone cards management and operations of resorts. In May 2005, the Company ceased its franchise operations. The Company’s subsidiaries include Sugar Bun Fast Food Center Son. Bhd., Applebee’s Bakery Sdn. Bhd., Vanilla Foods Centre Sdn. Bhd., SB Franchise Management Sdn. Bhd., SB Lifestyle Sdn. Bhd., Strawberry Foods Sdn. Bhd., SB Resorts Sdn. Bhd., The Borneo Bar Sdn.Bhd. and Strawberry Baking System Sdn. Bhd. In October 2006, the Company’s wholly owned subsidiary, Borneo Oil & Gas Corporation Sdn. Bhd., acquired Borneo Oil (Thailand) Limited.

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