28 February 2017 Kuala Lumpur - Road maintenance company Protasco Bhd revenue and profit plunge surprised the market on Monday Bursa Malaysia announcement, followed by Tuesday sell down from RM1.17 to RM1.03, or 14 cents drop. Intraday low touches RM1.00, or 15 cents away from 5 year historical support around RM0.85 not seen since 2012.

The quarterly result shocked the market especially after having bombarded with positive projections by local research houses coincidentally weeks before the result is published, market believed derived from Protasco Bhd management, seems artificially.

The repeated announcement on Protasco Bhd business prospect, together with interviews and advertorial published on business journals have caused many investors trapped at around RM1.20 before the plunge. In the short term, technical analysis may suggest 30% cut loss point would price the stock at RM0.84. Rebound would face resistance around RM1.10.

What worried the investors is the bizarre 88.5% profit drop, and less than 1% net profit margin which is now looks like freak show. The 97% PPA1M project completion looks promising, but the RM1 billion liabilities looks over committed.

investors would likely observe another quarter.

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