Ok, my first contribution to the new thread.

Where is the bottom for Zelan? I was asking myself this question so I did a check on the stock's recent performance and found that the drop started when the CEO started selling down his shares via Nobel Gem. You can see from below that the amount he was disposing sometimes went up to 53% of the day's total volume!


11/11/2008
Change: -$0.10
Volume: 9,208,300
Disposed: 3,768,600 (41%)


12/11/2008
Change: -$0.14
Volume: 37,011,700
Disposed: 12,361,400 (33%)


13/11/2008
Change: -$0.06
Volume: 13,493,000
Disposed: 3,633,300 (27%)


14/11/2008
Change: +$0.01
Volume: 13,367,600
Disposed: 4,836,700 (36%)


17/11/2008
Change: -$0.06
Volume: 17,453,000
Disposed: 3,844,100 (22%)


18/11/2008
Change: -$0.015
Volume: 6,869,400
Disposed: 805,600 (12%)


19/11/2008
Change: -$0.03
Volume: 9,069,800
Disposed: 4,851,300 (53%)


20/11/2008
Change: -$0.085
Volume: 16,233,400
Disposed: ???


He (via Nobel Gem) was left with 1,867,200 shares after 19/11, so the question is could he have disposed them all today? If yes, are we seeing a bottom for Zelan?

Err... maybe because he's stepping down as CEO so cashing out, retiring, etc? Zelan just announced that they'll let his contract lapsed in January and soneone else will replace him.

If you look at the announcements, EPF had also been buying.

Could be because it's a strong bottom at 7,773.

This post has been edited by wirelessdude: Nov 21 2008, 12:03 AM

Start of bargain hunting?

Woah! Look at the number of big sells on KNM.

Good long-term prospect but not near term cos high capex. Coverage still limited. USB modem coming out end of the year and HTC just launched a PDA with wimax. But Intel should start building Wimax chips in laptops (ala wifi) by end-2009.

Go Zelan! Go KNM!

Up lar!!!

I bought a lot this morning. But have to sell off all today cos I'm going Singapore next week to jalan-jalan.

Woot! Cashed out from my Zelan, Scomi and LionDiv bought this morning. Looks like my week will end in green after all.

I also can't quite understand the sell-off for Zelan, especially looking at the fundamentals. My opinion is that it's a combination of the CEO selling since he's leaving the company, and foreign funds selling to meet redemption back home like KNM. That's why I'm holding both - 300 lots each.

That said, I managed to contra 400 lots of Zelan today for about RM1,000 gain to try to make back for the paper loss.

On the interest rate cut, I think the RM will weakened if it happens and which is why I bought AUD$20k this morning ...at a relatively low RM2.27 rate.

300 x 100, so it's 30,000 shares each.

Ok, here's the reason why Zelan shares were sold down by it's CEO...

How Zelan started was that it's business was injected into MMC's Tronoh. Hence, there are 2 main shareholders - 38% by MMC (controlled by Al Bukhary) and 22% by the current CEO.

Now there's a board tussle and MMC's obviously winning with their bigger share and so did not renew the CEO's contract. Rumour has it that Al Bukhary will put his own man as CEO with plans to either take Zelan private or inject MMC Engineering into Zelan.

That's why the CEO sold off his stake.

It's actually very simple. If you want low risks, buy blue chips like the ones you've mentioned. If you can stomach higher risks but with the possibility of far higher returns, go for penny stocks like KNM and Zelan.

The economy will eventually pick up one day. Just buy the stocks and keep it for 3 to 5 years.

Wonder how will Dow perform today. It was the extreme opposite of the "bloody red" prediction.

Just got back from Singapore. Wow, Ramunia looks attractive for trading buy since most stocks overshoot on the way up/down. Anyone knows the fair value, e.g. from research report, news article, etc?

Just bought into Ramunia.

I bought 20 lots at $2.29 just to join the fun.

Shit! I sold 100 lots of Zelan this morning at $0.80. Luckily still got 200 lots.

Yup. I think Zelan at current price is low so I'm holding for long-term.