1. The rally from the lows of 7c was the turnaround story. From years of -ve to +ve earnings.
2. Follow through rally due to 2nd consecutive Q of +ve earnings
3. 3rd consecutive Q of earnings continue to be +ve but not showing earnings expansion ie below market expectations. Therefore sell.
4. Will continue to sell until those who wanna take profit are done selling. When will this end? Anyone's guess. 200-day SMA is 29c. But who knows, 30-30.5c could be the so-called psychological support.
5. Contract wins have been small. Cash cows hasn't translated to earnings expansion.
6. If many bought below 20c, then many are taking profits off the table. Especially now that the chart looks horrible. The more it falls the more people wanna secure profits and sell.
7. The TA guys will tell you that a falling share price on increasing volumes is never a good sign. 18/12/2019 3:41 PM
maxprofit2020 When it was above 0.4x, ppl thought it will continue up, so it was not sold and hold until today. When it is at 0.305, ppl think it may drop further, so panic sell and hope to buy back later. I agreed with Paktua that own emotion need to be controlled to avoid wrong decision made. The biggest issue for most ppl is greedy. I would suggest those have not yet buy KNM to wait for the base formed then only enter.
At this junction whether IDSS will press down the price day to day to < 0.295 nobody knows. I believe sharks had sold all when it was > 0.4x when ppl chasing high, and all the way from 0.4x to 0.3x it was IDSS short selling to make daily short term profit with no strong support to hold the price. Technically the price had fell far below MA 50 (0.405) & MA 90 (0.395), the next support is MA 200 at 0.295. If the price able to support at this level and form a solid base, then a rebound is possible, else, it may end with waterfall if price being press down below 0.295 by IDSS. 18/12/2019 2:21 PM
@bizzybone I own up to say I was wrong when I said the chart was bottoming out at 34-35c. I actually bought a bit but sold it off. I don't like to get stuck.
The chart has now broken down again. Next support 29c.
Even if you want to be an investor, one needs to know when to buy. Imagine buying at 45c. So average down all the way? Your capital will be stuck.
What happens if a Black Swan event happens tomorrow? Borsig to save the day?
Don't blindly follow people. Those of us here who have been against simply buying KNM are not haters. We were merely trying to caution against chasing. 18/12/2019 11:22 AM --------
Thank you and really appreciate your insights bizzybone and maxprofit2020 !
Moving forward, I will not add more and wait until this retracements stops. Beside, my holding cost is still below that support level that you indicated. Hence I can wait...
From my observation, the number of buyers and sellers have not reduced. It's only the price that has gone down.
From what I understand, stocks have dedicated middlemen called Market Makers who are responsible to make sure that there is always someone to buy or sell; this ensures that all instruments have sufficient liquidity. Market Makers may decide to lower their bid on a stock based on a high number of sellers, or raise their ask for a high number of buyers.
During an investor rush to buy or sell, it's possible for the Market Maker to accumulate or distribute a large number of shares, without end-investors like you or me being involved on both sides of the same transaction.
Although I usually based my investments on Fundamentals, as this point of time, I may need to listen to the TA guys in the team to understand where this ship is heading. Hence at this point in time, I don't think we have a choice but to put our hat temporary as a trader as fundamental does not make sense anymore. Otherwise how do you explain a company with 3 consecutive quarters profits, more than 600 millions contracts wins and lots of cash cow still going down at the rate of 40% as someone highlighted earlier.
As a rule of thumb, it is always not advisable to buy into any stocks that is below 100,000 volumes. Fortunately, this is not the case for KNM. The average trading volume for the last 4 weeks is 42.7 times bigger than the minimal threshold. Today, the volume is even 88.3 X bigger than the minimal threshold.
Profits Indicators is on the uptrend and so does the revenue. As Sardine stated the volume of ESOS is marginal, hence I recon this ships really needs something tangible to rebound again.
Just to give you a flavor, two week ago one of my Plantation Stocks TDM is on P1 among the Plantation counters. It even beats all my other expensive Plantation Stocks. You know why there's is a high interest in TDM?. It's is because of ECRL. ECRL will passed through TDM Plantation as it cruises 160 km/h.
Hence we need something similar here to make it fly again..
come on KNM ...break 30sen ..you can do it ..drop to 0.195 sen...who want to buy at 30sen-40sen..Chinese New Year Rally few more weeks to go..so push to 0.195 sen..then we push back to 30sen...so Sardin can brag about his Borsig..ekkeekkekeke...jgn mare..KENAMAKAN
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....
riko
2,730 posts
Posted by riko > 2019-12-18 22:56 | Report Abuse
Still borsig...... What else.
You can get smart watch only cost you rm30.
With this rm30 smart watch... You can whatapps, phone call... Touch screen...
This is call China borsig....