BJFood had announced two substantial corporate developments, as follows:
- Proposed acquisition of Berjaya Starbucks Coffee Company Sdn Bhd for RM71.698 million; &
- Proposed JV to set up Kenny Rogers Roasters business in Indonesia (a 51%-stake costing RM1.91 million).
To finance the Starbucks acquisition, BJFood has also proposed a Rights Issue of 4 shares (with 4 free warrants) for every 5 shares owned at a price to be determined later. For more on the Starbucks acquisition & Rights Issue, go here. For more on the Indonesia JV, go here.
In the past few days, BJFood has been trying to break free of the horizontal line at RM1.03. Today, it gained 4 sen to close at RM1.09, albeit on a volume of 4024 board lots. It looks like the stock may continue to rise steadily & test its recent high at RM1.17.
Based on the bullish breakout at RM1.03, BJFood could be a good trading BUY or medium-term investment. The stock falls under the consumer theme play that I had written about earlier.
Chart 1: BJFood's daily chart as at Jan 18, 2012 (Source: Quickcharts)
Chart 2: BJFood's weekly chart as at Jan 18, 2012 (Source: Quickcharts)