During my investment talk 2 days ago, I said that the price chart for PCCS showed that it had just broken a new high. I also said that always buy up trending stock because it would likely continue to go higher and never buy down trending stock because it would be like catching a falling knife.

I also said that no stock could continue to go up or drop for whatever reasons. After sometime it would change its course. In this case, PCCS started to drop a few days ago after having been going up to break a new high. The chart shows the price has gone up from 36 sen to 61 sen, an increase of 25 sen or about 70% within 6 weeks.

Listeners might be encouraged to chase to buy it. I might have given you the wrong impression. Although the company has reported 3 consecutive quarters of increasing profit, in compliance with my golden rule for share selection, I am obliged to point out that its annual revenue of Rm 436 million is less than its previous year of Rm 529 million.

Based on the reduced revenue, I doubt the company can continue to report increasing profit. I am concerned and I must warn you to be very careful.