Sellers love the holy number 0.070 firmly queue at. Instead they can withdraw the position and move a step or two higher to 0.075 or 0.08 that fully advantage themselves.
BURSA MALAYSIA SECURITIES BERHAD’S QUERIES DATED 4 JUNE 2020 XIDELANG HOLDINGS LTD ("XDL" OR "THE COMPANY") EXCLUSIVE DISTRIBUTION AGREEMENT BETWEEN XDL AND SEACERA POLYMER SDN BHD
We refer to the announcement by the Company dated 3 June 2020 (“Announcement”) and the query by Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 4 June 2020 in relation to the Agreement. Unless otherwise stated, defined terms used in this reply shall have the same meanings as those used in the Announcement. The Company wishes to provide the following additional information pursuant to the abovementioned query:
3. Given that Seacera Group Berhad ("Seacera") is principally engaged in tiles, construction and property business segments and have no prior experience in dealing with the protective clothing products, please provide further justification for XDL to appoint Seacera as the exclusive distributor with the exclusive right to resell and distribute XDL’s protective clothing products (non-medical purpose) in all states of Malaysia. Reply Seacera, through its subsidiary, has obtained the licence from the Malaysian local authority to store, supply and do business in the prevention protective products. Where applicable and upon request by its customers or relevant authority, Seacera will use the best endeavours to obtain any other necessary approval and licence for distribution and marketing of the protective clothing products. In addition to that, Seacera possess extensive experience in trading and more importantly, has amassed a sizable pool of customers and business contacts both in Malaysia and neighbouring countries. These markets present promising prospects and demands for the protective clothing products. To expedite the market penetration while keeping the risk exposure of the Group within acceptable level, the Group is of the opinion that the exclusive distributorship arrangement with Seacera is mutually beneficial and complementary.
4. Further clarification on whether the distribution of protective clothing products requires Malaysia’s regulatory approval prior to it being sold to the public. Reply As provided in the Exclusive Distribution Agreement, the Group is responsible for the supply of protective clothing products to Seacera for resale purposes. As far as the Group was aware, Seacera, through its subsidiary, has obtained the licence from the Malaysian local authority to store, supply and do business in the prevention protective products. Where applicable and upon request by its customers or relevant authority, Seacera will use the best endeavours to obtain any other necessary approval and licence for distribution and marketing of the protective clothing products.
5. Investment risks for venturing into production of protective clothing products upon taking into consideration the business prospects in Malaysia. Reply The primary investment risk faced by the Group will be inadequate market awareness and acceptance of the protective clothing products in Malaysia’s market. Nonetheless, the Group is of the opinion that the investment risk is kept within an acceptance level given that there is no substantial new capital investment involved other than the RMB5 million (equivalent to approximately RM3 million) required to modify the existing production facilities and upgrade the machinery components. The marketing risk for the protective clothing products is shared with Seacera, where it has extensive trading experience and business network in the Malaysia market albeit not previously involved in dealing with protective clothing products.
Price if sustain within 6.5 cents then should be ok. If falls below then u can see down trend is coming. Someone is pushing down the stock so that they can collect more b4 pushing it up. If the price mainrain 6.5 cent chances more room to go up is there. Just watch & see how it goes. Gud luck
At 10am only 8% buying rate, so no chance to go big at 0.070. Those queue at 0.070 this week better change position to 0.075 or 0.08 with greater patience. Reason is there are more than 500k volume queuing at this price and more two third of them already there since the past two, they will be be strike the selling deal by computerised system. 0.070 may likely to be on the sell side for another week, depending on daily buying rate.
Those not confidence with XDL pls cabut asap....hehehe.....so that big boss can collect sufficient tickets for good of the rest, thanks for yours contribution...
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....
010855
274 posts
Posted by 010855 > 2020-06-09 16:58 | Report Abuse
Start tomorrow 0.070 ~ 0.085...