Not matter how good a company is, its share price cannot go up without buyers. In order for price to go up, buyers must be more than sellers and the buyers must be willing to buy at higher price. 

What happen to Heng Yuan this week seems to suggest that 'certain parties' with hidden motive vomitted tens of millions worth of shares in a duration of few minutes to create panic sell down. One can ascertain this by carefully studying the hourly charts.

I believe there were also numerous sharks/ operators at play in Hengyuan during its rise from RM 10 to RM 19. Few operators, seeing that the counter is under attack by 'certain parties', might have taken flight to protect their capitals.

With the few days of sell down, I believe the operators who wanted exit had already done so and they are watching and waiting to rejoin at the right time, as the fundamental of Hengyuan is still intact. The current PE of below 4x will be extremely tempting.

Another reason which explains the high drop on 18 Jan is that there is a prominent investor who claimed to own 20millions shares. Operators were worried that he might start selling first, therefore they panic sold first. However he has already reiterated many times that he will buy more if he sees improving Qr results and will only start selling a little if there is a dropping Qr.

 A little bit of investigative skills will bring you to his comment on Jan 6 6:25pm, that he owned 6 millions share at that time. So does this mean that he has bought 14millions share from Jan 6 to Jan 17, at price range of RM14-RM17? If this is true, I have great respect for him as he truly is a superinvestor who has unwavering belief in the bright prospect of this company, and we will surely emerge as the true long-term winners for our great foresight.

My TP for this Heng Yuan remains RM30 by June 2018.