This is a tightly held company controlled by the Sim family. Generally speaking there are few shares sold and there are few buyers. Those that there are are, I suspect, one branch or another of the family, which may be buying the company back slowly on terms which suit them.
The company has not paid a dividend for some years and the practice in recent years is to issue a profit warning about 3 months before the end of the financial year. Do not expect a dividend this year.
This announcement says that there is a "soft launch" of this new sideline and that it is unlikely that there will be any impact on the bottom line.
The part of the business which had good prospects was its now spin off medical products division.
What is left in the company is no doubt a highly skilled engineering division in Singapore. If that is what you want to be an owner of, keep your shares. For the rest of us, this is IMO an opportunity for existing shareholders to bail out at a price which is double what has been on offer for some time.
ZGL Price at posting:
9.9¢ Sentiment: Hold Disclosure: Held
