If you click these links you can read my previous articles on Hengyuan, in which I have been encouraging people to buy the shares.
Hengyuan Should Continue Its Uptrend – Koon Yew Yin
Why I Bought into Hengyuan – Koon Yew Yin
The above table shows the company’s announcement of its 3rd quarter result yesterday. The company made Rm 1.21 per share and Rm 1.21 in the 1st half year, totalling Rm 2.42 per share. In spite of such a fantastic result, why did the price drop by 20 sen?
The above price chart shows that Hengyuan has risen from Rm 3.00 to the current price level, an increase of more than 300% within a year. As a result, a lot of weak holders are selling to take profit.
Many people asked for my opinion.
1 If you desperately need money and you have margin call and you do not have any other way to raise money, then you have to sell.
- Based on Financial, Technical Analysis and even on its business model, you should not sell.
- I can understand why there are more sellers than buyers yesterday in spite of such good result. Small weak players would sell. Clever shareholders would hold and only smart investors will dare to buy some more.
My congratulations and good luck to all the smart investors.