If you noticed that Canone has been on the declining mode since last week. Those smarter investor may have already unload their holding slowly anticipating of poor result. As seen from Focus Lumber today, it is the biggest loser lost 11% of its value in just a day.
Canone quarter one of 2016 financial result will be announced soon anytime this week. Any weak earnings will just push Canone share lower and probably gap down to RM3.50. If broken, it may fall to RM3.00. This shares has been on speculating side since last year when prominent investor promoting it and acquired huge amount of Canone shares which cause the share price to spike up to RM4.40 on mid April 2016 as so many follow his foot steps. No wonder this prominent investor can proudly claimed this share increase more than 100%.
This prominent investor said the shares is undervalued. While an article by Focus Malaysia this week saying that the F&B Nutrition in Canone is overvalued when KWAP trying to acquire 30% stake for RM280 million. Then who is right now? I would think KWAP will be wasting money and jeopadising pension fund by paying much more than they should. KWAP should put public interest first and probably negotiate to get better price or walk away as these parties have intention to make big bucks in a short period of time. It has been years of selling this and that. Might as well sell off everything and don't need to do business. If you follow Kian Joo recent quarterly financial result, its down half than the previous quarter and may not contribute that much to Canone. So you will see weaker earning for Canone this coming quarter one of 2016 financial results. Any companies that being fakely push up and missed earning estimate will have huge gap down on the next day. Usually this gap down will be continuous for 2 days before stablise to lower fair value level. Be safe and make proper research before investing your hard earned money. Think twice of prominent investor statement.
News article from Focus Malaysia. They said overpriced.
Prominent investor claimed undervalued.
As of now Canone at RM3.80. Continous down trend. Maybe bad result ahead? Are you willing to wait for quarterly result to have gap down?
Take a look at recent Kian Joo financial result. Down 50% compared to the previous quarter. No wonder keeps dropping also. Less speculation so it will drop slowly without huge gap down although missed earning expectation.
If you remember. Canone drop by 6% during the last quarter as the result missed earning expectation.
Shot up to RM4.40 when this prominent investor acquired 15 million shares. All the followers just enriching him.
CANONE (5105) - Will Canone have same fate as Focus Lumber? Prominent investor buy and you also buy
http://klse.i3investor.com/blogs/marketcheck/97016.jsp
