Dsonic - 5216

There is total 6 Call Warrant for Dsonic. 

Dsonic - CP : 

Issuer : Macquarie

Maturity Date : 31 Jan 2017

Exercise Price : 1.35

Remark : 

Dsonic - CQ : 

Issuer : Macquarie

Maturity Date :  28 Feb 2017

Exercsie Price : 1.65

Last Trading Date : 23 Feb 2017

Remark : Out of the Money

Dsonic - CR : 

Issuer : MIBB

Maturity Date : 28 July 2017

Exercise Price : 1.45

Remark: Out of the Money

Dsonic -  CS : 

Issuer : MIBB

Maturiy Date : 28 July 2017

Exercise Price : 1.65

Remark : Out of the Money

Dsonic - CT :

Issuer : RHB

Maturity Date :  15 Jun 2017

Exercise Price : 1.50

Remark :  Out of the Money

Dsonic - CU :

Issuer : Macquarie

Maturity Date : 31 July 2017

Exercise Price : 1.30

Last Trading Date : 26 July 2017

Remark :  Out of the Money

Above information obtain from MalaysiaWarrant and broker website, kindly check with your broker to get the latest update or check via Bursa website shall there be any changes of the exercise price or last trading date to avoid unneccessary losses occur due to warrrant trading. 

Ever wonder why DSONIC dont go up when the market momentum is picking up before CNY and during CNY.  My personal analysis is that to wipe out Dsonic - CP and Dsonic - CQ retail trader. Normally a call warrant issue trading period will be less than one year in general. 

Let take Dsonic - CP,  Dsonic - CQ as example, the first day of trading was 25 Aug 2016

 Once it issue, DSONIC started to rally to the peak 1.63 which fall on 23 Sept 2016. So, basically this bull run for DSONIC only last for about a month.

Exercise for DSONIC - CQ is 1.65 and compare to Yesterday closing price was 1.15 which mean 0.50 difference and with such a limited time frame. It is unlikely for miracle to happen for DSONIC to cimb above 1.65 within such a short time frame which is only less than a month time from now.  I think there is possibility for DSONIC will go above 1.30 in 6 months time so lure retail trader to enter DSONIC - CU. So, trade warrant, entry , exit and time frame play a crucial part when come to trading. 

Let talk Dsonic, a hidden bullish divergence is forming for DSONIC at the moment as you notice there is a higher low formation for the past 7 trading days. To confirm the bullish reversal signal it has to break above 1.18 ( TRIPPLE TOP) to go up further.  Once it go above 1.18, the next resistance level peg at 1.26 and follow by 1.30 ( MULTIPLE TOP).  Year 2016 low was 1.06, it this level break. Then, we shall see psychological support level 1.00. 

There is not much of coverage of Dsonic. It seem that many Investment Bank Research House no longer look into this counter. What i could find the latest research house Target Price given for this counter was last year that cover by RHB give 2.00. You may click on below linkage to read further on the news.

http://www.thestar.com.my/business/business-news/2016/07/02/datasonic-on-a-roll/

Beside that, there is another news that trigger my interest.

http://www.thesundaily.my/news/1915084

Dsonic clinched a RM223.38 million contract from the Home Affairs Ministry to supply Malaysian passport documents over a five-year period, commencing Dec 1, 2016.

So, i believe the coming quarter revenue will be improving same go for profit. 

Beside that, i try to source to for the forecast earning for DSONIC. This is what i obtain from a website 

https://markets.ft.com/data/equities/tearsheet/forecasts?s=DSONIC:KLS

So, overall fundamental outlook still remain positive despite negative outlook for technical perspective. However, i do believe this bearish price movement is to wipe out retail call warrant players in the market. Once after Feb 2017, I believe Dsonic should be able regain positive momentum to move up again. 

Conclusion, the upside may not be great for the nearest time until all the call warrant expire and looking forward for better result to be release so that market will react positive toward it. 

Disclaimer: Above information obtain at the best available source of information. Any inaccurate information, writer should not held any responsibility due to investment losses arise from above article. It does not solicit buy or sell call on the stock, it merely for educational sharing purpose. Kindly consult your investment broker pertaining any investment decision.