More...

http://www.theedgemalaysia.com/business-ne...for-rm350m.html

If we were to TRUST what is being said

""The proceeds from the proposed share subscription are intended to be used by P1 for the settlement of certain debts and trade payables, for P1’s working capital purposes and other operational or capital expenditures."

GP's cash 38 million.
Total borrowings 404 million.

Why is it important for GP to want settle the debts?

http://announcements.bursamalaysia.com/edm...al%20Result.pdf

See how much is GP's financial cost this year?

50 million. (last year 36 million)


How much is GP trade payable?
Under its balance sheet, it has 86 million trade payables.
Listed under 'Other payables and accruals', GP owes 356 million.


How much is GP getting for its P1 stake?

jonchai
Leng chai...

Just in case you say I simply ketuk GP.

From their profit announcement recently.



See GP's other business?

Leng chai meh?

This p1's (PON) profit LOSSES track record.

Oops... that GP stock performance is not directed at you. Sorry.

It comes hand in hand.
Once the major shareholders hold too much stock, liquidity will be a problem.

Anyway free float is really small



Profit growth is good (I really do not know much about the company. )
and it looks like the market is liking what it see .......



Looking at the left side of the chart, you can see the liquidity issue....

That's not a positive thing really.

Most want nothing to do with his shares.

You downgraded my value by 3 sen ka?



92 is the price you want to watch.
And you want the stock to move higher than 92 sen.

If you are impatient and you do not wait for this to happen, the risk is that it could fall back lower.
Look at Feb big run, where did it hit the roadblock and then turn horribly lower?

Volume.
No volume no action.
Too little volume ends up with a lame action.

Again compare the Feb run. *we come back later on that run again*
Look at that volume.
What can you gather?
Well it's gonna need that much volume to see action.

Last Tuesday volume, 25/3, the volume build up was fine.
Stock ended up few bids higher.

What happen next?
Two things.
It held its ground, which is good.
But there's no follow up.
Since Tuesday, the stock gained 1 sen.
So it's half half here.

Next we take the bigger picture.



We need to zoom out to read the tea leaves.
We need mor info esp on volume.

What does the zoom out tell you?
When was the last big play on Malton?
Last June.
That's the key.

You want to see those kind of volume.
Else the play most probably might not be meaningful.

Understand the volume?

If the volume is not there...
yes, Malton could move past 92 but would it have enough momentum to go pass 1.00?

This is an important issue for you to address.

Else you will be trading a stock, which could see some gains, but the gains could be limited due to the lack of buying momentum.

Meaning to say, if you enter at 92 sen, at best maybe you could see the stock go 1.00.
A 8 sen gain.
And that's about it.

LOL!
And you know what I would call such a trade?
Yup, a Mickey Mouse trade.

You know me la...
I don't believe in making a trade aiming for such tiny profits.
It's not meaningful and even if one can win some...
soon one day, one will be stuck....
you know I have examples to back up such statement.

So if the volume is not there...
perhaps it's even better to wait even higher.
Wait for the 1.00 barrier.
If it breaks that WITH volume, chase the chicken.

Back to the Feb movement.
Feb is usually big profit announcement month.
True enough, Malton's earnings was announced on the 26th.
Ok, without looking inside Malton's earnings, Malton's profits looked great.

Mark the date down on the chart, and you would have seen the stock JALAN few days earlier on 18th.

The stock already priced in the good news....
or them busuk insiders already knew?
And since then the movement has been disappointing compared to the earnings.

Congrats on wood.

No volume no action.
No action no money.
No money no honey.



GP?
What's the biggest thing to learn?
Never fall in love with a rumor.