A little known counter MLAB which cancelled its planned purchase of China's shoes manufacturer Bage (China) Co Ltd (Bage HK) may be in for another announcement. One doesn't have to look far to be alert about the upcoming announcement. The price chart speaks it all. Accumulation has started and this may last for some time before any announcement is forthcoming.

The cancellation of the planned backdoor listing with Bage actually bodes down well with the public and the investment community. Any stock linkages with red chip stocks doesn't have to take long before the stock goes on a downtrend channel.

The counter had a fund raising activity few years back where it was of the interest to venture into developing mobile application that enables multiple user video conferencing to be activated at the same time across different geographical locations. There wasn't any new announcement being made about the progress of the venture. We can safely assume that it never materializes from the quarterly financial results.

Although the fundamentals doesn't look good but the stock may be a good trade before any announcement is made. As the saying goes, buy on rumours, sell on news.