KUALA LUMPUR: The ringgit is expected to trend lower against the US dollar next week in anticipation of a possible interest rate hike by the US Federal Reserve.
Affin Hwang Investment Bank Vice-President/ Retail Research Head Datuk Dr Nazri Khan Adam Khan said most Asian currencies would also trend lower, given the strong US dollar index following the possibility of interest rates being raised at the next policy meeting on Sept 20-21. "Market will react defensively, because if the US Federal Reserve were to raise interest rates this month, we may see an outflow of foreign funds.
Then, long term investors should come in to scoop up "lelong" shares. This is perhaps a better time to do it. When other pp are scared, we become greedy.
As I said, operator wanted to flush out weak and contra players during bad times. But today's low vol so far seems to suggest that these pp are already out of the mkt. If there is no more bad news from internally or externally, price should stabilise at current levels, ie operator continues to collect at 6 sen, buyers will need to pay 6.5 sen. 6 sen becomes the exclusive zone for the operator.
It depends on whether the operator wants to make it a reality. I shall not want to speculate it.
But at today's closing prices, mother(7 sen) + warrant(3 sen) = subscription price for recent right issue. Anything bought below these 2 prices would really mean a bonus, cheaper than what current shareholders had paid.
Over these 2 days, the vols traded for both mother and warrant are pathetic. No active buying and selling. PDZ is in play today. Hope it can stir up interest in other penny stocks after FOMC meeting...
This is a positive external event from the US. US and asian mkts have all rallied on this news. But Bursa penny stocks are muted? Operators are not seizing this opportunity to ramp up prices? It could reflect a downbeat trading environment.
Quite risky counter. But can consider to buy at current moment and wait for sometime. Still got potential to push up. I am targeting at RM0.12 for this counter.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ongmari
2,003 posts
Posted by ongmari > 2016-09-08 17:00 | Report Abuse
no pe to measure.... base on book value, maybe 10 cents max........next 2 to 3 qtrs will see how the company perform