Those last 15 minutes surge in volume is because more than 500k+ buyers being thrown at.

Volume is big but amount of money is not big, 80 millions of daily volume means about 5-6 millions in real money term at 7-8 cents which is considerable low for ordinary daily share transaction.

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Added on June 12, 2009, 5:32 pmEveryone entitled their opinion, view and comment as nobody knows the future.

Getting or listening to both side of story will only improve our judgement and benefit to all.

Cheers.

This post has been edited by cherroy: Jun 12 2009, 05:32 PM

It is a danger and warning sign if major shareholders cum company management board/CEO are disposing their stake until don't intend to keep controlling stake in the company.

There is another potential episode by doing it.

There is a risk of their disposed shares being 'sapu' by others which resulted them to lose control stake in the company and having a say on the company even risk on CEO position.

As if a company is indeed worth much more than current price and have strong future and profitability, there is a risk others are eyeing on it.

Basically we don't know why they are doing it, except themselves. Others just can guess based on their activities.

Cheers.

Don't look down on ikan bilis and uncles/aunties out there, in fact, we have some forumers that alone also can do the job of six figure purchase on one stock.

1 million is peanut in the market.

I don't think it has to do with power struggle. If there is power struggle, price will shoot to the roof, not down and everyday with high volume. As whenever there is power struggle, people involved will 'sapu' the share not dumping.

In fact current situation is more like substaintial shareholders dumping the shares which a lot of ikan bilis took up.
But whether the dumping intention is for margin account or intention to buy lower, that's I don't know and up to anyone to see, only they know.

Also even though the volume is big everyday, the amount of money is not that big, a few million worth of transaction each day which again is peanut in market place. Main reason is because its low share price. As if not the stock split, it would be a 1.xx stock., which by then volume could be shrinking a lot if there is no split.

Based on lastest financial report, they are making revenue of 100-200 million each Q, but profit wise is merely 31K or a few hundred K only each Q while in between losses are made as well.

I don't know about their business. But if those company turnover is done in credit term instead of cash term then it is a risky business model because whatever credit term has risk of default. While profit margin is simply too low to offset the risk of credit.

Don't mean this stock is not good or good. Just bring out some discussion point.

General employee of the company won't know the details and situation of the company.

Ask those work in any listed company be it large or small or MNC, they don't know about the company financial situation nor know how cashflow situation of the company currently except few top management people until company released the Q report.
They only know a fraction issue that within their job scope, like more order being received, customers defaulting payment, new product is in the pipeline etc, or specifically daily operation within their job scope. For company shareholding structure issue and main company management issue, only top management can know it, and generally people won't disclose it. As top management people won't be stupid to do insider trading based on their known information, as if caught, it just means one's career could be in jeopardy totally and future employers would not dare to hire as well.

That's why we always only have the rumour until too late, just day or days before the actual news is coming out when negotiation and deal finally take place, just wait for paper work for announcement which generally where the rumour come out/news leak because it is done deal and script and issue being sent to lower management team people to do paper work. <-- that's where most rumour (that actually true and realised one) come from.

In early and middle stage of deal, we won't hear any news and company insiders/person involving won't dare to disclose it.

Not necessary, if share structure is loosely across, 20% is good enough to control the company.

We don't know where the disposed share gone to, could be lot of retailers as well. As even in this forum we have lot of people are buying it.

As long as one surpass the 5% stake in a company, they need to declare under KLSE rule whenever there is a chance of share. be it buy or sell 1 share.

Also CEO doesn't necessary to hold large chunck of shares, some may have little or zero share except some ESOS as long as majority of shareholders vote for him/her.
Some major shareholders don't intend to run the company on its own one.

Bare in mind, the 5x effect actually part is come from gearing effect of warrant.

Don't mean whether this counter can 5x or 8x or not, just it is possible and easy to achieve 5x 10x gaining effect through warrant compared to ordinary stock.

Not quite or a bit different private company, for a public listed company and having own website, it is needed to update their website especially financial report which as part of corporate responsibility for investors relationship to inform public investors about company situation.

my view only.

I seldom post here but any investment in stock is not based hoping company making profit and generate wealth to shareholders, it is mere speculation. Don't get me wrong, there is nothing wrong in speculation.

While others just posted based on fundamental part (profit issue) which they seem plenty of risk of long term investment in this company. It is perfectly reasonable and sensible

So if one is aiming for speculation that share price can go up (due to whatever reason) without fundamental backing and based on gorenging, that's fine as there is no right or wrong as it is individual appetite.
While others comment of fundamental part issue, it is totally sensible as over long term share price cannot run away from its fundamental.

So I don't see where is the arguement or conflict in it.

Don't need to be overly defensive on your stock and offensive to others. Forum place is good for sharing opinion and view. Don't like the view, just let it be. By reading more view and information, one could only improve oneself.

Cheers.

Zpow,

CKC and others merely analyse the weak fundamental of the company (No profit no dividend). As said before, if you are not fundamental play on this stock and merely for speculation purposes as stated before, there is nothing to defend or argue on it.

About goodwill value, most forumers get it right, goodwill is not about value of its listed share or listing status, in fact nowadays listing status is not valuable like last time out. Goodwill is non-tangible asset which can be worth nothing if the company name or company itself doesn't valuable in the first place means the company name itself must able derive profit out of it. Just like Coca-cola, its name is a selling point which can make profit for you, there where the goodwill worth come from.

Goodwill under new accouting rule needs to be amortised, as goodwill cannot be properly judged and it is much fair to be amortised.

In term of fundamental discussion.
A company asset > liabilities is not good enough to prove it is a solid company.

A solid company is always means strong cashflow and profitability.

If a company cannot make profit for the shareholders, why shareholders want to invest in the company that derive zero return? Better keep in FD, right? That's the basic of investment fundamental. We invest in a company and wish the company can yield return much more than FD rate, that's the most basic fundamental.

That's why we have lot of company NTA is 4.00 but share price is at 2.00, because company cannot make much profit although asset value is high because there is no point for minority shareholders to have unless those asset value can be turned into cash and returned to the shareholders. The situation is same you own a shop lots worth 500K but no tenants demand, there is no point to buy at 500k even market value is 500K unless you can cash the 500K.

A share price is a reflection/prediction of company future ability to derive the profit as mentioned. Yes, short term wise share price can fluctuate way beyond/below the fundamental due to supply and demand or gorenging, rumour etc., that's where people can take opportunity to speculate and gain money out of it. But it is not sustainable in long term basic. Without fundamental backing (profitability) the footing of share price is not strong.

So if you are in the camp of speculation as said, I don't see why need to argue on fundamental side, to say it is a solid company.

Speculation is different ball game than fundamental play.

We welcomed both side of story, I don't see it is an insult in carrying discussion in opposite what you think about it.

You can say it is a solid company with xyz asset under their account fine.
Other can say it is a weak company with weak cash flow, fine.
Another can say its asset is not a solid figure due to xyz factor, fine.

All are meaningful discussion as long as those figure is right and exactly from their account, whether it influences others to buy or throw the stock or not doesn't matter, as share price won't move because one said bad or good word about it.

I don't see much an issue on this thread discussion. Opposite opinion is a norm, that's why we have buyer and seller all the time on both side. A half glass of water can be said half full or half empty, both are right statement, but whether eventually it will become empty or full, nobody knows. So if it will be emptied afterwards, half empty will be seen right so does vice versa scenario.

Cheers.

Just correct something, goodwill whether it is totally writeoff or not, doesn't related need to cut 50 issued shares, it has no effect existing issued share but NTA per share becomes lower on paper.

For the goodwill basic concept.
Just like a property price worth 500K on market based on valuation, you go to market to buy at 700K. On your account book, you need to state 500K hard asset + 200K goodwill. Those 200K is "imaginary number". So goodwill sometimes can be an imaginary number to balance the book only. In this case, it is needs to writeoff 200K because the property actual worth is 500K.

Whether it is worth to buy at 700K, it is different story, as if those 500K property can generate good return afterwards, buying 700K (or paying extra 200K goodwill) could be seems good deal, but if not, it is a bad deal, as it means you buy 200K more expensive.

Hope this clear the issue of goodwill.

Please refrain from personal issue, the topic is discussing about Compugates specifically, personal issue shouldn't bring up to here.

Thanks for the cooperation.

Topic is closed for cooling off period as this thread become a personal issue talk already.

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Added on July 20, 2009, 9:52 amThis topic has reached the threshold of 125 pages, so this version is concluded. Any interest on discussing it can open a V2 topic.

Again reminder, this forum section is not about personal arguement.

Thanks for cooperation.

This post has been edited by cherroy: Jul 20 2009, 09:52 AM