On Monday, four penny stocks, namely Visdynamics Holdings Bhd, MNC Wireless Bhd, Solution Engineering Holdings Bhd and Industronics Bhd, hit limit down almost simultaneously in the afternoon session, drawing queries from Bursa Malaysia.
According to a dealer, the four companies each had a block of shares that had been rolled over a few times.
“The was no real money coming in to pick up the blocks. The bubble finally burst after one stockbroking house out of several, stopped the line of credit,” said the dealer.
At the close yesterday, Visdynamics and Industronics remained in the red finishing 41.49% and 15.58% lower respectively while MNC and Solution Engineering recovered some earlier losses, ending the day 16.67% and 7.69% higher respectively.
Industronics in its reply to Bursa Malaysia on its unusual market activity (UMA) said it was currently exploring a proposal which involved an internal reorganisation of the group while MNC said it was not aware of any explanation for its UMA.
As far as links between the firms go, Solution Engineering is 10.8% owned by Industronics, an electronics company which has Danish national Christian Kwok-Leun Yau Heilesen as its chairman.
Interestingly, Kwok is being bandied around as being the common person involved in all four stocks.
The 30-year-old Kwok, however, said he had divested all his investments in Malaysia several months ago.
“I have not been to Malaysia for several months now ... I sold all my investments several months ago to investors from Macau,” Kwok told StarBiz when contacted.
Kwok, together with Raymond Yip Wai Man, used to own about 15% in DVM Technology Bhd and he also held a stake in Industronics, which he has since divested.
He is no stranger to market controversy.
In 2011, Kwok, who is based in Hong Kong together with Yip, bought into DVM after which they requisitioned an EGM to remove several directors from the company.
Spear, this is the problem of Malaysia's stock market. There are just too few IBs or stockbroking to compete for business unlike Singapore or HK. Most of the time those limit-down fracas all started from these stockbrokers for refusing trading lines at their whims and fancy at the last minute.
DVM, Cybertower, GPRO are ACE stocks. From Day 1, you should know these are "new economy" stocks where their projected profits are based on astronomical evaluation with no solid backing.
Itronics, is a Main Market stock with solid and real business and a cash coffer of $30m. However, it is unfortunate that the controlling shareholders of Itronics made his money by trading ACE stocks. He used the same modus operandi on Itronics. This explained why the very high trading volume of Itronics over the course of past few months.
FatFLOM 47 posts Posted by FatFLOM > Apr 30, 2014 10:52 AM | Report Abuse
The wheels of history keep repeating itself. After Tan KS, come Repco L, Kenneth V, and now CHL, CBL, and the list goes on ... --- @FatFLOM , can u give out the full names. I want to read more about these people. Thanks in advance. ;)
This announcement is 28 April, on that day itronic stand at 0.685 n fall to 0.385, so this announcement is inform public it has reach the limit down gua...
small retailer better clear all your holding in itronic.vis and solution, do not gamble on these as syndicate who represent Christian have all sold to 0 shares !!!Now all stocks are in small retailers like YOU who can not sustain the price for long, if margin call the chain of reaction will be very frightening !!!!
HARVARD57 is ALSO ONE OF THE SYNDICATE. HE PREDICTED CSL WILL UP 0.5 sen to 14 sen, the most, but WRONG!! MAN, TODAY CSL ***DID*** TOUCHED 15 SEN!!!!! (albeit close 14 sen)
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....
FatFLOM
195 posts
Posted by FatFLOM > 2014-04-29 16:24 | Report Abuse
见好就收?
乘胜追击!