Palette Multimedia says MyEG managing director's remarks 'unprofessional'

PETALING JAYA: Palette Multimedia Bhd’s chairman and managing director Eg Kah Yee called MyEG Services Bhd managing director Wong Thean Soon “unprofessional” for making a statement involving his group’s stock recently.
Wong issued a statement on Monday in response to news reports published last week, stating that he had sold off his holdings in Palette and will refrain from making any passive investments in listed equities in the future.
Wong explained that his move was due to the fact that certain media had picked up the information in the annual reports and created a misconception of an impending corporate exercise in the companies.
“I have no idea why he had to announce it because it was really unprofessional. To me that was uncalled for as no one asked him to do that,” Eg told reporters after the group’s AGM today.
“He sold off his stake quite some time ago. He actually sold probably about 10 days before making the announcement. The sad thing is that why did he go to the media?,” he added.
Besides Palette, Wong also spoke of his holdings in Malayan United Industries Bhd, adding that he has no plans to go in again.
Eg noted that it is acceptable if Wong made a statement that he will no longer invest in the market but he does not need to name the companies.
“It’s somebody’s stock and you don’t own it anymore, why do you want to talk about it? What does he have to do with it?,” he said.
On Tuesday, Palette’s share price skidded 12.35% to 35.5 sen following Wong’s statement. Today, it gained 3.5 sen or 9.86% to 39 sen, with some 46.16 million shares done.
Palette is a solution provider of broadband, wireless and networking products and services. Its i-Medic platform, a mobile healthcare cloud system that connects to multiple wireless intelligent medical or healthcare devices to doctors, caretakers or hospitals is one of its main revenue generators.
Commenting on the group’s financial performance, Eg said he is confident that the group will perform better in the next two years, driven by its new contracts that have just kicked off.
“Almost every month we have contracts coming in. Currently, we have contracts about RM35 million that will be shipped within the year,” he said.
For the first quarter ended Aug 31, 2017, Palette returned to the black with a net profit of RM3.03 million, compared with a net loss of RM516,000 in the same period last year.
At the AGM, the group received shareholders’ nod to change its name to UCrest Bhd.