Guys, if you think now is a good timing to enter this stock, please search back the history of this counter. I know some will say it has went down from 0.1x down to current level over the years and is a good time to enter now seeing all the volume past few weeks, again would like to caution newcomers to buy or existing holders to add.
Not sure where the consolidation news comes from or whether is true, but it does not hide the fact that the counter's image has been tarnished badly since the CNQC takeover news back in 2016/2017. Even non-retailers like some funds has been caught at that time, so it's not something you want to touch if venturing into penny stock. There are more potential ones out there since this counter is really unpredictable and if what I feel/think is somehow accurate, these few weeks volume has more hidden negative agenda than just simply push up the price (bear in mind only few bids up since the volume starts).
The feeling is not good at least for some of us here.
If this counter is going to get 'Gorenged'. No one will ever know how high it can go. Neither will anyone know if it's a trap. So, please be happy playing/investing this counter. It's really a Thrill.
People get the wrong impression what the whole consolidation process is all about. It all depends how much money this company is going to redistribute back to their shareholders. If not than there's no point of consolidation!
Yes, if consolidation does not benefit shareholders at all, one use is to create more 'room' for downtrend by calling for Rights Issue and hence double whammy to the old/strong shareholders so the impact is greater. Why? Because current price does not allow for more technical downtrend to cause greater psychological impact than if the price consolidate first, then waterfall later by calling for additional Rights Issue (RI). Even if no RI, selling the share down after consolidation is akin to death by a thousand needles.
If you don't subscribe RI, your share price becomes diluted (auto-adjusted lower after exercise) and potential to be stuck for even longer. If you subscribe RI, the company and gang earn your money for whatever use and hence sustain the meal for another few years.
Whatever the outcome after consolidation, some undeniable fact can be observed - existing shareholders now face dilemma if there is RI. If no RI, the price downtrend will cause even greater psychological impact to you.
Repeat above until enough shares collected in hand, then create another story for pump and dump, finally restart cycle. Although takes years, this is not something new and is one way to look at how the market works.
"A leading Technical Analyst noted that the trading today following an early recovery-high to 5 sens has given the rise to a strong technical indication that VIVOCOM has been over-payed and over-priced.
In view of the current strong rumours circulating among the trading community about an imminent share consolidation of 20:1 would occur, speculative traders continued to throw caution to the wind.
He also noted that faced with the underlying fragile setting, VIVOCOM's fair value should be ideally peg at 2.5-3.0 sens range for the immediate term."
tkl88 is just another troll that should be ignored.. Does a single retailer selling or not matters in the grand scheme?
My point is to share information since someone mentioned about potential consolidation, in the hope that retailers will be more aware if such exercise happens.
Playing counters like this is a gamble as usual, the most we can do is to make use of available information to the public.
Negative: - Down trending penny counter - Bad image since last major failed / fake corporate news announcement during 2016 / 2017 - Rights issue proceeds from Aug 2018 - nearly all the 30 mil for working capital is used up within a single quarter. Working capital can consume so much in just a few months? And where is the return of investment of that quick huge consumption? That is a major red flag. - Billions of order book but where is the receivables and payment after 2-3 years? Another red flag. - Most penny counters have no fundamentals yes, but the 2 flags above paint the picture that management uses this counter as a financial machine to earn 'your' money in market instead of real business.
Positive: - Cash on hand and less liabilities - Improving quarters - Venture into property with real funds, but is a risk in today's economy - Recent volume and breakout from long sideways
So many shooting stars today everywhere - many got trapped chasing high. Vivocon operator also lowering the buy/sell queue by 1 bid after few days of sideways, is not a good sign. Wait for consolidation news to confirm the downtrend.
Be very very cautious of your money, many professional punters start showing their flags again today.
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zai3388
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Posted by zai3388 > 2020-07-13 12:22 | Report Abuse
lari cepat cepat sebelum kena stucked. jangan tak lari. big clearing kat 4.5c and 5c. sudah mau GAME OVER !!!.
Orang semua takut itu consolidation 20 share jadi 1 share.