A Victim of Bad Timing, but Means Time to PICK UP MORE!
Author: | Publish date:
Last Friday, DGSB made an announcement that they are investing in DURAMITT SDN BHD - comprising a proposed acquisition by DGSBvia its 60% subsidiary, Paragon Spectrum Sdn Bhd (“PSSB”) from Teow Yen Kim and Lim Yen Chie of 1,289,500 ordinary shares in Duramitt for a cash consideration of RM10.0 million, a proposed subscription by PSSB of 1,934,250 new ordinary shares in Duramitt for a cash subscription consideration of RM15.0 million; and proposed subscription by PSSB of RM15.0 million new redeemable preference shares in duramitt....
However, this announcement and this news, while it was welcomed by many - was caught in a wrong timing!
Shares were suspended on Friday afternoon (2.30pm to 3.30pm). LAST FRIDAY AFTERNOON, we saw a major selldown of majority of counters, and while DGSB had shot up the morning til 0.255, right after resumption, it came down and tumbled spectacularly as though it fell into a running waterfall.
The whole world still require gloves. Even with vaccines, the world still need gloves. BUT why did it fall? DGSB did not fall because they were going into gloves - but rather the market sentiments on Friday.
WHATS the good thing about this whole situation, from Friday til now?
1. It broke its 52 weeks high of 0.235. That is one major resistance milestone that it broke, and will continue to break it in the days and weeks to come.
2. Gloves. Gloves. Gloves. While everyone else (from CAREPLUS TOPGLOVE SUPERMAX to even the unknown small guys) are shouting on big profit jumps, this will be a big catalyst for DGSB.
3. We have seen it hit a Friday morning high of 0.255, and today it is trading below 0.19. To me, I think it is time to collect, and wait a bit... not too long, but in the coming days, we will see the surge.
If MAHSING can limit up on their glove entry, DGSB surely can. After all, Duramitt is a much stronger partner, versus who MAHSING has as their partners.
Be the first to like this.