Uzma Bhd started the day on a weak note. The oil and gas stock was under selling pressure, it slipped to a day's low of 92 sen. The selling seems strong judging by the high trading volume of 379.3 million shares. Uzma is the 10th most actively traded counter on Bursa Malaysia today.
The selling was seen as a delayed reaction to the company's announcement last week that its wholly-owned unit is taking legal action against South Korea's Khan Co Ltd (Khan) and Kong Offshore Malaysia Sdn Bhd (Kong).
The legal action is made to recover the overpayment of RM63.14 million works.
However, an analyst who was contacted commented that there was "nothing wrong" with the legal suit as its outcome will either be positive or neutral to Uzma.
"The project was given back to Uzma, and Uzma continued to deliver the project with expenses already booked.
"Should Uzma win the case, there will be a write-back that will reflect positively on their cash flow, but if otherwise, there will be no impact to Uzma as no impairment is needed," the analyst told theedgemarkets.com today.
Lucky the announcement is a good news. Win the case will get more cash, otherwise won't impact to Uzma. Which means this case is only +ve and won't have any -ve affect to Uzma. Market is over reaction today.
pang72 They switch to beautiful Jaks. Up so much today!! Dont you see it!! 04/11/2019 10:19 PM
Sing song all you want. Mr. Market will play tricks on you when over confident. Spooky news always create panic. Beware, any share rises, will fall. Fundamental or not.
Uzma was pushed down from 0.80+ to 0.55+ in spite of good track record.
Be wary of news. Do your research. Armada and TM also suffered same fate.
Uzma - 4 quarters already make increasing profit, this coming qtr to be released result will also make an increasing profit too. A good company like Uzma keep on making increasing profit each quarter, this has happen for 4 consecutive quarters, and the next coming quarter is also expected to increase its profit too. Choice as usual is always yours, to be believe or not to believe is always yours. Uzma has a lot of potential, Near TP1.2, next TP 2
Hard to believe the sell down. Uzma is filing a legal case against someone, so the outcome should be positive if successful. If not successful, then no impact, right? The cost should have already been accounted for in the previous quarter results and still shown increasing earnings. So, believe someone is trying to pull down the price to accumulate more before the next quarter result. I am betting for a quick rebound on Uzma and will accumulate more.
When the bad news coming, everyone started to panic and sell out, bought using contra yesterday few times when hit low, today already realized profit.
Please people, when reading the news, take a few minutes to digest, see fundamental if it still strong, don't easily sell down and let other people fools you.
63 million overpaid was already calculated, plus the company already taking legal action. Based on current fundamental, this won't affect earning at big gap.
Look at the volume yesterday, some rich folks just went ahead and collect everything.
Uzma hit 0.99 this morning. Expect a price consolidation after lunch, as contra players will throw, and serious investors will hold. Those waiting to enter, you can be patient, and wait for the right moment to enter. Cheers, Uzma.
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Posted by pang72 > 2019-11-04 22:27 | Report Abuse
Another beautiful story begins in jaks