Hahahaha...That stock? Dun like!

Hahahaha...That stock? Dun like!

Charts are important part of my trading setup but however, I do not like the chart to lead me into a trading position. It's a no-no. (Again it's a personal preference as I am talking about me. Yes, we will trade differently and I hope you understand this and I do not have to parrot repeat this. )

Anyway, this is what's happening, as far as I can see...

That steep plunge in end Oct. It went from a close of 30 sen to a close of 15.5 sen. The floor just gave way. Ya, the stock DID recover but such movement does not install any confident in the stock and what's worst is the news broke out that there was massive short selling...

And yes, company started making losses too..... and debts built up too (see below link)

https://www.thestar.com.my/business/busines...ts-former-self/

** but it's to note that that a new majority shareholder emerged https://www.theedgemarkets.com/article/seac...ial-shareholder **

Now how did the company get into this mess? As I knew long time ago, Seacera was a fairly decent tile manufacturer.... and since when did Seacera got involved property?!!

https://www.thestar.com.my/business/busines...-in-five-years/  *the big plans to expand. Quadruple? Ooo... Perhaps too aggressive..

https://www.theedgemarkets.com/article/seac...r-rm10b-project ** Pr1ma ?? Ooo

Yeah.. yea...

And then came the news to 'fix' the problem, esp the debts.

https://www.thestar.com.my/business/busines...vate-placement/
Given the financial state of the company, this is a rescue package. But it comes at a cost. Lots of new shares will be issued.....

which I guess it's understandable why the shares is kept high... but for me, what's next after all this?

Tiles making is not a sexy industry to be in atm (yilai losing money, kimhin losing money..)

and after all these share are issued, will future earnings even justify the share price?
For me, I find too much risk involved. Speculatively, the share could be driven higher to seduce the private placement but fundamentally, I am not comfortable at all.....

Will I be seduced into a trade? Most likely not.
just sharing la...

Most stocks can be grouped. I call it Happy Family.

For example, teoseng will belong to eggy stocks.

So...

1. Look for all eggy players..........
2. Can you find the leader of the pack? WHICH bugger up sibeh geng?......
3. Look see MalaysiaStockBiz and click on the financial table... you spot the trend? ie do you see the sector all green green.
4. Checkout how long the trend is? Is it fairly new or fairly matured?
5. Compare to the stock you are looking at. Is it the best? Second best? etc etc..

Do these first.... I would

Was there a valid invest/trade/speculate this stock in Nov?