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KLSE: HIBISCUS "cannon after horse"

Tan KW
Publish date: Sun, 29 Dec 2013, 12:46 AM
Tan KW
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Good.

 

Saturday, 28 December 2013

 
This is a 马后炮 analysis of HIBISCUS, i.e. analyze only after the fact has happened.

Share price started moving since 6/12/2013, and the 4th big candle was on 13/2/2013. No announcement yet. But good outcome of Block 50 Oman Drilling was speculated, which is why the share price has gone up from ~RM2.10 to ~RM2.70, nearly 30% in just one week.


HIBISCUS



With no drilling results announced and this kind of share price movement + volume, I have thought the same -- good news from the oil drilling project. 


Following that, 2 black candles are drawn on the daily graph, 16 and 17 Dec 2013, with low volume. This would be a normal "washing" process, from my experience. I wouldn't even mind if I hold the share.

What is really scary is the 3 big black candles after that, accompanied by huge volume and big drop.Yet, no news were announced on these date -- 18, 19 and 20 Dec 2013.

Then, on 23rd, the company requested for suspension of trading.That's it. A request for suspension of trading, in Bursa Malaysia, if the day before the price is a big drop, then it just mean that the news to be announced are bad news. As simple as that.

Even worse, on 24th, a further suspension was requested.

On the same day, the results was announced.


On 26th, open low + top volume stock. That's it. 


Personally, I do not believe this is part of the washing process, to use a failure in oil exploration to wash out retail investors. What I look at this is that the "big fish" is far more aggressive than I thought -- already know the drilling results before 23rd, for sure, then goreng up the stock 3 weeks before that: 1 week goreng up + selling, 1 week kept selling (hence big drop), the last week announced results.

After all, I wouldn't touch this stock. 

http://chonghe-investment.blogspot.com/2013/12/klse-hibiscus-cannon-after-horse.html

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Be the first to like this. Showing 10 of 10 comments

n00bpelabur

Major shark activities and inside information happen. Damn pity for those that had been trapped.

2013-12-29 01:06

DevilMustDie

yea..hope to get back some of my capital..i won't touch this company anymore. horrible nightmare.

2013-12-29 02:19

ganasai

nobody ask you buy. Buy/sell is your own decision. What stock not goreng by shark? if you want to blame, blame yourself why not sold it during high price. Want earn more? Haha.... The fault is not on the stock itself. Hibiscus still got a lot of opportunity.

2013-12-29 11:21

goshawk

If your investment premise was that of a long-term buy and hold, what do you care if the stock price went down immediately?

2013-12-29 11:25

ganasai

Smart! Dont buy on high price! so long period, hibiscus stay between 1.5 - 2. But nobody want buy. What time they want to buy? when price more than 2.5. A lot of people like buy high sell high. But they dont know actually this is most of the traditional market trap, they will fall. Why 80% people loss money? Because they buy high, sell low. When price high, they expect more higher. When the stock price already drop 80%, then, they will to sell. Sell for what??? better loss that 20% also!

2013-12-29 11:35

ganasai

Most of the people naturally are "kia su" and "kia si". This will make them loss more money. "Kia Su", worry hibiscus really can strike oil, so even high price, they still want ride the train, dont want to miss chance. "kia si", when hibiscus price drop more than 70%, they loss confidence already, they worry the stock can bankrupt, so fast fast compete to sell. Human being, sad. when you are not human or think abnormally, then you can earn money.

2013-12-29 11:42

goshawk

If this really bothers you, it says something about your risk profile. Perhaps you shouldn't be buying stocks at all.

2013-12-29 11:43

winwin

sell if hit 20-30% profit. don't ever keep. most of fund manager and sharks won't keep longer for speculative counter.

2013-12-29 12:02

stockgenius

habis loh

2013-12-29 16:23

regnig

Just timing is not right for spac

2013-12-29 21:48

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