Technology company Telit Communications plc (AIM:TCM) has undergone many upheavals in the past two months, starting with poor quarterly reports and a drop in its share price, followed by the amazing story of the indictment filed against Oozi Cats, its CEO and principal shareholder. Cats was suspended from his position, and later officially left Telit, with Yosi Fait being appointed in his place. The appointment, however, did not restore calm to the company. The share price showed signs of recovery, but a profit warning published by Telit two weeks ago sent the company's share tumbling again.
Hong Kong private investment fund Run Liang Tai was quick to take advantage of the trend. The fund first invested in Telit in September, when it bought 3.4% of the company's shares, and has since then steadily increased its holdings, reaching a 14% stake. This makes Run Liang Tai Telit's largest shareholder, according to the most recent report, ahead of Cats, who holds 12.9% of Telit's shares. Run Liang Tai was founded in 2016. One of its holdings is in Chinese Internet giant Baidu's iQiyi subsidiary.
Telit is active in the M2M market, selling products for communications between electronic devices, including Internet of Things (IoT) apps. The company's share price has declined 41% over the past year, pushing its market cap down to £206 million ($274 million).
Two weeks ago, Telit downwardly revised its revenue forecast for 2017 to $390-400 million, 5.3-8% more than in 2016, but less than its previous forecast of $400-430 milliion.
Published by Globes [online], Israel Business News - www.globes-online.com - on October 16, 2017
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