Copy and refers from Bursa King Cross: https://bursakingcross.wordpress.com/2015/12/01/wintoni-group-yap-group-in-battled-sea-would-chart-wise-technical-rebound-helps/

[Kuala Lumpur, 2 Dec 2015] : Refers back to the market research report "Wintoni - minorities demand SC action on SP Setia and EcoWorld big wigs. Share collapse 29%"  (source: http://klse.i3investor.com/blogs/bursakingcross/87288.jsp), Wintoni today rebounded from 6 cents to 8 cents in moderate volume traded. The company had drop from 16 cents and tanked over 65% to 6 cents in just 5 market days. Would such positive trend last ahead of Bursa rulling which would suspend the counter by 8 December 2015, where series of unfortunate events happens since illegal hostile entry of Yap Kok Weng, the single largest shareholder of Wintoni.

Wintoni 3 cents or 30 cents? Worst, GN3 or delisting?

Wintoni Group Bhd [Code: 0141] may suffer illegal hostile takeover and lawsuit, it's still a contrarian counter especially for technical analysis followers. It's basically roller coaster fun fair the last 1 year, where share price shot from 5 cents to 42.5 cents, and subsequently shot down from 42.5 cents to 6 cents on 30 November 2015. Here are some software charts indicators for reading pleasure.

• Wintoni Group Bhd
• 
• Tehnical: 3 historical trend lines suggest lock down support and resistance at 5 cents to 8 cents range, and may settle as 3 cross line of 6 cents.
• Volume: If next few days volume hits above 100 million shares per day matches similar volume and trend set on Feb - Mar 2015, share price may trade within 5 cents - 12 cents. During the high volume period if share price goes up may suggest syndicate could be in long position; other wise may suggest in short position. If there is within teen 20 million volume, may suggest syndicates are still stuck with the shares with no clear direction.
• Resistance & Support: 9, 10, 12 cents. 6, 5, 3 cents. (assume no GN3 or delisting)
• Fundamental : Unclear
• Business direction: Unclear
• PLC listing status: if hangover prolonged, potential risk of suspension and delisting.
• [Disclaimer: for reading pleasure only]

Potential Survival Plans?

Assume that the company did not goes down the drain with a GN3 or delisting status, and some clear business plan is carried with the support of majority shareholders by rushing through an EGM, perhaps some idea the shareholders could average down their cost if these typical exercises happens.

• Right Issue at 5 cents with warrants. The bonus of warrants may potentially discount holding cost by 30% post right issue. Rescue existing business to keep PLC alive.
• Acquire or injection of new business to keep company alive, with friendly terms to reward both PLC stakeholders and white knight. Hopefully existing small investors are not crushed.

However, without going through the long process, some semi-legal way to take over the PLC may still happens to fulfill both Bursa Malaysia and stakeholders’ interest.

• General Offer to take the PLC private. The ruling may suggest GO price at 42.5 cents, which seems ridiculous to take place. However by law, Yap and group of speculators have to comply, despite such obligation, reassurance of company survival is still required before GO could take place.
• Cut lost and sell off shares of all parties working in concert, which is impossible to sell to market in a negative environment. Any potential to sell at better price may still require assurance of company survival.

Summary:

Buying shares in negative and battled environment may suggest blood bath long position for the syndicates, especially fighting up hill. Unless there is clear business direction, Wintoni is simply too risky even for speculators. This type of market manipulation came with huge risk and reward, it's meant for brave hearts. If the syndicates long all the way up, it's a gambler doubling up the bets on poker game position. Gamblers always believe in outsmart the house.

Despite the damages caused by hostile parties, market generally wonders why the hustle to gamble such huge pile of hot money while many corporate dealings could be done peacefully and creates win-win solutions simply by negotiation instead of pumping up the minority investors blood pressure and rock the market directionless like mad cow. Perhaps this is the price for Wintoni controversial investors’ (Yap and group) illegal trespassing to pay for their wrong doing. If someone pays the ticket, just enjoy the show. The fans are expecting more surprises to come after 8 December 2015 chapter.

Lesson learnt - Face value is expensive. Do not try illegal trespassing, Malay says "kurang ajar"; ask for permission when enters someone's yard.

[Reverted Research review. 2 December 2015]

[tag: WINTONI, WINSUN, YAP KOK WENG]