Today profits taking was a minor retracement to the strong bull’s surge and momentum we have witnessed since 4 days ago.
Most likely caused by RHB’s decision to limit their exposure in Vivocom in terms of contra credit. This is a good sign as it’s only applicable to Super Bull stock. Plus I do not encourage short term contra plays.
The share price as a result dropped to as low as RM1.41, before closing at RM1.47 for lunch session.
There were more sellers than buyers today as traders locked in profit, with sellers at 61.4%.
However, it is worth noting that only 6.94% of total traded volume were done between 1.41 and 1.44c, which is similar to last Friday scenario when the share price corrected last Friday, very little volume were done at the lowest price (RM0.89 to RM0.94).
That was exactly what happened today.
This showed that Vivocom’s natural market support price is pegged at or above RM1.45. No wonder the stock rebounded strongly each time upon reaching RM1.45.
If you recall in my most likely scenario, I have forecasted the first peak to happen around 20 Nov with target price RM1.53, subsequently a retracement to RM1.41.
Today’s lowest price was RM1.41. This confirmed that the market is essentially pricing in and bringing forward my forecast by approximately 2 weeks.
In this case, we should see RM3.00 by the middle of December. So do enjoy the ride upwards guys.
Vivocom is in my view a long term and sustainable rally. So no contra or margins play please.
May the force be with you. I anticipate a strong rebound in the afternoon and closing around RM1.50, with the strong uptrend still in tact and continuing with it upsurge to RM1.80 next week.
Those who didnt buy today will regret next week no more cheap tickets. The volume can justify. The closing price is control to dip a bit to avoid UMA. Very obvious already.
Your money, your investment. People post have their own opinion. No need to follow, never asked to follow and don't need to follow. Follow your own evaluation. Do your own research. Manusia memang manusia.
What is the risk of this counter collapsing since the big boss Chia has vowed not to sell a single share for 3 years?
Pardon me but from what I know usually people get trapped when insiders are done goreng goreng then offload to poor uninformed ikan bilis like myself. But in this case, seems like the biggest shareholder and biggest stakeholder (iirc 80% stake) is not going to let that happen??
It means that the stock price of this counter can still rise very high. RHB requires collateral for purchase of shares in GETS Global, Vivocom — sources TheEdge Sat, Nov 14, 2020 07:04pm - 9 hours ago
KUALA LUMPUR (Nov 14): Investors who intend to buy shares in GETS Global Bhd and Vivocom Intl Holdings Bhd via RHB must now have cash or securities as collateral in their accounts in order to execute purchase orders, according to sources familiar with the matter.
Sources said the investment bank requires its clients to have cash on the basis of 1:2 and/or share collateral on the basis of 1:1 in their trading accounts for all purchase orders for shares in bus operator GETS Global and construction firm Vivocom, both of whose share prices had rocketed.
The requirement will take effect from the coming Monday (Nov 16), said a source.
For exceptional cases where no buy suspension is to be performed, written approval is required. However, the bank's clients will be allowed to continue selling shares in GETS Global and Vivocom.
Some quarters said the collateral requirement is common practice of any securities firm. It is a move for better risk management when there is a big leap for any counters within a short span of time.
The collateral requirement comes after a meteoric rise in the share prices of the two loss-making companies.
Vivocom, which recently completed 10-to-one share consolidation, saw its share price triple this month to close at RM1.50 yesterday. It hit a high of RM1.55 on Thursday. Prior to the rally, the stock had been hovering below the 50 sen level since mid-May 2018.
Its market capitalisation has ballooned to RM849.68 million at present.
The rally coincided with news that Vivocom had struck a deal with Datuk Seri Chia Kok Teong to buy 45% of V Development Sdn Bhd for RM171 million through a combination of cash, issuance of consideration shares and/or irredeemable convertible preference shares.
On top of that, Vivocom also got into a subscription agreement with Golden Key Portfolio Sdn Bhd for a private placement of 169.94 ordinary shares in Vivocom, representing 30% of total issued shares at a subscription price of 35 sen per share.
The rise in the share price of GETS Global was even more dramatic. The counter soared from nine sen on July 30 to RM3.71 this week. The main fuel of the strong rally was probably the announcement of its plan to venture into rubber glove manufacturing after the emergence of a new substantial shareholder, namely Teong Lian Aik.
The company was slapped with unusual market activity (UMA) queries by Bursa three times on Aug 26, Oct 20 and Nov 12 respectively.
GETS Global yesterday announced that its subsidiaries were served with a summons and claims of RM385,570 from Sinotek Autoparts Sdn Bhd (SASB).
Hi See jovin. May I know if you have posted your end of day Friday report for vivocom anywhere? Thks in advanced. May U b well , happy, prosperous and blessed always.
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....
drteh84
527 posts
Posted by drteh84 > 2020-11-13 13:41 | Report Abuse
VIVOCOM = TIMECOM .