For Newbies Education 

Avoid if can, otherwise trade cautiously and avoid being trapped for years, in loss making penny stocks that

1. has total issued shares exceeding 1 BILLION shares; some has MULTI-BILLIONS shares and can’t have a decent EPS
2.  undertake frequent fund raising exercise to increase company fund
3.  issue lots of shares to ESOS or Private Placement investors, diluting minority shareholding
4. undertake huge rights issue exercise to raise fund from shareholders, diluting EPS and minority shareholding
5.  give free warrants as sweetener for rights issue
6.  has numerous warrant (example A,B and C)
7.  has ICULS or ICPS (PA) with high exercise price
8. often ask shareholders to pour in more money to buy rights shares instead of paying dividend to shareholders
9.  frequent announcement of numerous  MOUs or Collaborative Agreement which normally turn out to be nothing
10.  frequently churn out articles, reports and announcements of business ventures, JV to create excitement and attention. Good companies need not do this;  they show good profit results
11.  Incur losses quarter after quarter, year after year, utilizing and depleting company fund
12.  use large portion of company fund to acquire assets, settle debts, JVs, etc
13.  use company fund to invest/speculate in other penny stocks
14.  Undergone or undergoing share consolidation followed by rights issue with free warrants to extract more money from shareholders causing huge losses to specifically minority shareholders

Common modus operandi of loss making penny stocks is to have frequent fund raising exercise by issuing shares and selling to market via ESOS and PP as well as undertaking rights issue exercise (often with free warrant as sweetener), enlarging the total issue shares to BILLIONS and diluting minority shareholding percentage.

When the issued shares become Multi- BILLION, and it is no more viable to raise cash by issuing shares through ESOS and PP, the directors will undertake Share Consolidation followed by offering rights issue with free warrants to extract more money from shareholders causing massive losses to minority shareholders.

The company fund raised from such activities are normally used to cover yearly losses, business projects, assets acquisition, debt settlement, JVs, etc.

Some of these companies also use company funds to invest & speculate on other loss making penny stocks.  And most of the time, ended up with huge losses.

Beware of frequent announcements of MOUs, Collaboration Agreement and projects utilizing company fund, which is to create excitement and attract attention of unsuspecting retailers especially newbies to trade in the stock.

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List of loss making penny stocks:

ANZO, AT, BORNOIL, COMPUGT, DAYA, DGB, DIGISTAR, DOLPHIN, EAH, EDUSPEC, FINTEC,

FOCUS, GOCEAN, HUBLINE, ICON, IDMENSN, IMPIANA, JOE, KANGER, KGROUP,  LAMBO, LUSTER, M3TECH, MACPIE, MMAG, MINDA, MLAB, MNC, MTOUCHE, MTRONIC, NETX, NEXGRAM, OVERSEA, PASUKGB, PDZ, PERDANA, PERMAJU, PHB, PNEPCB, PUC, PWORTH, SANICHI, SAUDEE, SCOMI, SINARAN, TALAMT, TANCO,TAWIN, TIGER, TRIVE, VC, VINVEST (VIVOCOM), VIZIONE, VSOLAR, WIDAD, XDL, XOX

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Stocks that have undertaken Share Consolidation exercise and/or rights issue with free warrants:

• VC, SANICHI, MTOUCHE, PASUKGB, LAMBO, PDZ
• TRIVE, DGB, MLAB, VINVEST (VIVOCOM), NETX, EDUSPEC, PUC
• SCOMI, ICON, IMPIANA, MTRONIC, VIZIONE, TIGER, KGROUP
• MMAG, HUBLINE,

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Get to know and remember the directors behind these companies. Normally the same person could be director in several companies at the same time or the same person could resign from one company to join another. (appears like shuffling).

Information is available in company website, bursa Malaysia announcement (Boardroom, Change of corporate information), i3investor or annual report, etc

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=boardroom&cat=CI%2CCOCI&sub_type=&company=0072&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all

https://klse.i3investor.com/entity/0165/22883/3194202304.jsp

https://klse.i3investor.com/entity/0153/49404/124119468.jsp

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Klse screener app (desktop version is more comprehensive) can be used to view company information, financial reports, price chart, news etc

Also check on the number of warrants and the total units of each warrant

https://www.klsescreener.com/v2/stocks/view/0170/kanger-international-berhad

https://www.klsescreener.com/v2/financial-reports

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Bursa malaysia website offers access to all company announcements. Look back at past company activities under category of Multiple Proposal, Additional Listing, Financial reports, Memorandum of Understanding, etc

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=&cat=&sub_type=&company=0170&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=&cat=AL%2CALCO&sub_type=&company=0170&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=multiple+&cat=&sub_type=&company=0170&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all

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Trade view is free to use for charting

https://www.tradingview.com/

https://www.tradingview.com/chart/XzSinm5l/

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Special Report: Hidden hands behind penny stock surge

https://www.theedgemarkets.com/article/special-report-hidden-hands-behind-penny-stock-surge

Special Report: Share Issuances the new get-rich-quick scheme in town

https://www.theedgemarkets.com/article/special-report-share-issuances-new-getrichquick-scheme-town

Special Report: Hidden hands behind penny stock surge under scrutiny

https://www.klsescreener.com/v2/news/view/818927

Sussing out potential pump-and-dump schemes on the stock market

https://www.klsescreener.com/v2/news/view/817723/sussing-out-potential-pump-and-dump-schemes-on-the-stock-market

Private placement frenzy

https://www.klsescreener.com/v2/news/view/814177/private-placement-frenzy

Trade wisely, set realistic target and don't be caught at high price for long time.

https://klse.i3investor.com/blogs/Whistlebower99blog/blidx.jsp

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https://klse.i3investor.com/blogs/kennethvuncarolvun/2021-04-05-story-h1563182432-Kenneth_Vun_s_Money_Game_of_Bursa_Malaysia_Probed_Shield_SANSTON_FINANC.jsp

Refer FB “Goreng Tipu Bursa Klse” for more stories

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https://www.nst.com.my/news/nation/2017/05/242003/macc-tells-public-use-mobile-apps-portal-report-corruption

MACCMobile

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Trade with care, not be greedy and get stuck for years