I don't think so bro diamond. The market is still uncertain, the bear speaks louder. Those who still hold a long time ago are interested to sell rather than buy. That's the sentiment at the moment till GE13 poll date.
SOLUTN is different from Nextnat. Lost making counter. I never buy, by the time they reached 0.165 & stay they waiting for their prey, I already know their game is to dump the shares to buyer at all time.
Lost opportunity for you then, I did make a comment on their good accumulation in March but since it did not hit my anticipated volume I did not enter. But it's good reference for any future entry to other counters of similar trends.
I don't see this is a lost opportunity because you can see this counter SOLUTN has no liquidity all the way before March 2013. Everybody will start talking when the price zoom to 0.225 from the low of 0.085. It is too risky. What you see is the "after effect" and make judgement. Never buy when the stock is eager to shoot up without reason.
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" OR "THE COMPANY") - ACQUISITION OF SALE SHARES
Nextnation Communication Berhad (NNCB) acquired a 1.5% interest in PT Goldchild Integritas Abadi (GIA), a coal mining company for a cash consideration of IDR43.3bn (RM13.8mn, IDR3.140/RM). GIA is the subsidiary of PT Inovisi Infracom (Inovisi) which is a conglomerate based in Indonesia and listed on the Indonesian Stock Exchange with market capitalisation of USD1.7bn. Inovisi’s businesses cover telecommunications, energy & resources, oil & gas, shipping & logistics, toll road concessions, media and e-commerce etc. To recap, NNCB was awarded a major 3-year outsourcing contract from Inovisi, for the provision of outsourced IP and Bandwidth Optimiser services. NNCB will receive a minimum revenue guarantee of USD22.5mn (RM69.75mn, RM3.10/USD) from Inovisi over an initial period of three years, with an option to extend another three years. The shares will be acquired via NNCB’s subsidiary, Nextgram Resources (NRSB), which is a holding company that invests in businesses relating to energy products, oil, petroleum, minerals and other natural resources. The vendor of the shares is PT Bina Tanjung Nusantara (PTBTN), which owns 40% of GIA. The GIA group is involved in coal trading and owns several coal mining concessions with coal exploitation and exploration licenses in Kalimantan, Indonesia. These include mining concessions with a total concession area of approximately 16,400 hectares in Central and East Kalimantan. The acquisition is on the back of NNCB’s new strategy to venture into the resources sector, in particular, coal trading. PTBTN undertakes to procure a monthly coal supply allocation from GIA for NNCB on best effort basis. The allocation is a minimum of 1.5mn metric tonnes over the next five 5 years at a 3% discount from benchmark Indonesian Coal Index prices. PTBTN will also grant a put option to NNCB to sell the 1.5% interest back to PTBTN at 130% of the initial acquisition price after 5 years in the event:- 1) an IPO by GIA does not materialise within the next 5 years, or 2) GIA’s IPO valuation provides less than 30% return. Our Take NNCB’s investment carries a moderate return of an average 5.4% p.a. at the end of 5-years assuming PTBTN’s IPO does not take-off. Therefore, we may rest assured that NNCB will not incur losses for this deal, which also implies unlimited upside if GIA’s IPO is priced higher than expected. However, we are more concerned of NNCB’s venture into coal trading which we view as highly cyclical and risky given the historical price volatility of coal. Given the lack of a track record and market intelligence, we believe NNCB may be subject to inventory risk.
Future prediction: Keep the price low so owner buy all. After right issue major owners will then buy all. After right issue go from 8c to 30c. Sounds familiar?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jason777
54 posts
Posted by jason777 > 2013-04-15 10:57 | Report Abuse
Hard to move many sell