Consolidating the shares in the Company would lead to a reduction in the number of HWGB shares available in the market and could potentially reduce the volatility of the trading price for HWGB Shares.
In other words, whoever wants to own this stock, should do it by now. Once it consolidated, it would be very hard to grab, especially when the price surge upwards. Investors would have either to take seller prices or miss the boat. This would also help the share price to push up further as everyone will be rushing to grab the stock at whatever cost. Whoever grab earlier before consolidation will benefit from the upsurge in share price and gain greater capital gain.
In other phrases, this stock would be easy to goreng by operators once it consolidated as less investors hold the shares and availability of shares in the market.
The share price has already priced in earlier knee-jerk reaction of the consolidation announcement, which investors don't have proper understanding on it. So, we could expect correction is over and buying interest by professionals would resume again.
The early stage of rally is dominated by amateurs, so, we might see up and down. The later stage of rally is dominated by professionals, which would see sustainability in the uptrend.
In this group has 2 different categories: 1. Wanted the share price to drop perhaps the buyer didn't enter at low price e.g 0,055, 0.060, or maybe 0.065, hope to scare the holder to throw and bring down the price that they can enter lower. 2. Wanted the share price to be pushing up, so blow the news and let others buy more to maintain or even make the price up. Conclusion, let yourself justify... and maybe has 3rd category which i wouldn't know... :)
This counter has been overly promoted, hence very risky. Do practise caution on loss making companies especially so when they are asking you for money. Moreover they have mentioned that they will consolidate 4 shares into one
At this juncture, the share price of HWGB is trading at overbought level of RSI and MACD has already expanded. Volume also doesn't support today's high. So, I believe the upside room is limited.
So, I expect HWGB to make a correction if fail to close above 7sen. The share price may correct to as low as 6sen while its warrants may go back down to earth to 2.5-3.0sen.
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....
gghaha
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Posted by gghaha > 2017-12-20 10:13 | Report Abuse
the share repeat the show again and again....