It's too early to judge this shares to be on downtrend. Consolidation is a better word. After the strong surge in volume and price a week ago, it's only logical for a stock to take a breather. A bull can't be charging all the time, right? It needs rest to get ready for another charge which would usually be much fiercer than the first round. A stock can't be considered as lousy simply because you can't make money within contra period. So many a times, the shares rebound soon after contra period. Therefore, it has nothing to do with luck. Like most of the small-cap stocks which are actively traded now, there's bound to be an "invisible" hand behind its shares movement. When the price is in the red or the technicals look ugly, this "invisible" hand could be collecting. As for owner selling, it happens in other counters too, especially after a sharp price rise. The owner will also be careful of not selling too much in case an outside party is eyeing on its company. Fundamentally, Genetech has done much better than a lot of other small-cap companies. Its revenue has been consistently above RM100 mil for the past 4 years. It made profit in 3 of the past 4 years. The loss in 2013 was due to the one-time charge from closing down their US operations. Net asset per share at 16 sen with estimeated PE of 20 for financial year 2015. As with any investment, there's always risk. Do your research and feel comfortable first before committing.
Stock: [GENETEC]: GENETEC TECHNOLOGY BERHAD
2015-03-21 17:01 | Report Abuse
It's too early to judge this shares to be on downtrend. Consolidation is a better word. After the strong surge in volume and price a week ago, it's only logical for a stock to take a breather. A bull can't be charging all the time, right? It needs rest to get ready for another charge which would usually be much fiercer than the first round. A stock can't be considered as lousy simply because you can't make money within contra period. So many a times, the shares rebound soon after contra period. Therefore, it has nothing to do with luck. Like most of the small-cap stocks which are actively traded now, there's bound to be an "invisible" hand behind its shares movement. When the price is in the red or the technicals look ugly, this "invisible" hand could be collecting. As for owner selling, it happens in other counters too, especially after a sharp price rise. The owner will also be careful of not selling too much in case an outside party is eyeing on its company. Fundamentally, Genetech has done much better than a lot of other small-cap companies. Its revenue has been consistently above RM100 mil for the past 4 years. It made profit in 3 of the past 4 years. The loss in 2013 was due to the one-time charge from closing down their US operations. Net asset per share at 16 sen with estimeated PE of 20 for financial year 2015. As with any investment, there's always risk. Do your research and feel comfortable first before committing.