Insider buying for Magni-Tech Industries Berhad (7087) or MAGNI has recently intensified. Mr. Tan Poay Seng, Managing Director of MAGNI acquired more than RM 5,000,000 worth of the company stock on 21st Dec 2017 itself. 

But the market continues its sell down on the counter. After MAGNI briefly reaches its all time high of RM 7.60, price has dropped more than 30% since. For many investors, this may be an opportunity to buy the stock at a 'cheap' price. 

But does the price drop actually means that it is cheap? Is it time to accumulate? 

We spent some time to research into this counter, and see if it we can money off MAGNI as well. 

Here's our findings:

So there you go, as I would suspect, there are weaknesses in our fundamental analysis in MAGNI and the stock performance is promptly punished by the market. Although we are seeing that there might be overselling and given management's confidence, the price of the stock might bounce back. 

However, I must warn our readers that buying any stock when bear is in control is like the saying - Catching the Falling Knife, you might have to bleed for a long time before seeing any rewards from this counter. I'm sure there are many who have already started accumulating, but there can be a better timing.

That is why we always encourage our investor friends to enter at the best price and best timing. According to our system (an Artificial Intelligence in stock charts), NOW IS NOT THE TIME TO BUY. (See: Action Plan)

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Stocks:

Magni-Tech Industries Berhad | KLSE:MAGNI (7087)

Prolexus Berhad | KLSE:PRLEXUS (8966)

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