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Saturday, 6 June 2015

Penny Stock Down And Hurt - Season 2 - The Ghost of K1, Priva, Wintoni, Krono

Dear Fellow Members,

Remember what I said before of not to touch Penny / Highly Speculative counters?


K1 latest Quarterly Report - Fundamental changed from Profit Growth to Operational Loss. As K1 is exporting mainly to Europe, their QR should be good, however the latest QR reported otherwise.
Price being punished from 0.64 to 0.34. Sad right ? Overnight your stock holding lost 50% of value.

With the latest Quarterly Report of Profit RM520k, the P/E still at 16 - its high for Small Cap company. By the way, perhaps we also overlook that its NTA is only 0.15.


Both revenue and profit drop.

May 2013 Quarterly Report - Profit RM 1.836
May 2014 Quarterly Report - Profit RM 1.276
May 2015 Quarterly Report - Profit RM 1.247

March 2015 VS May 2015 Quarterly Report
Profit RM 3.67 VS  RM 1.836 (The ghost is fierce).

The 1st QR is poor compare to 4Q 2014


Listed on 2014:

3rd Quarter 2014 Report: Profit RM 1.6m
4th Quarter 2014 Report: Profit RM 1,18m (dropped)
1st Quarter  2015 Report: Loss RM 1.1m

Mother Price 0.31 dropped to 0.245: Loss of 21%

The company main businesses comes from Singapore. With the weakening of RM and strengthen of SGD, one could wonder why it was hit with losses.


This stock was being goreng up by rumors 29 May 2015. From 0.33 to 0.365. When the Report was announced, the price dropped to 0.33. Sounds like magic right?


In Shares Trading, we must make a comparison of LATEST Quarterly Report with the 2ND LATEST Quarterly Report. Very important to note and remember.

EG: 1Q 2015 Report VS 4Q 2014. - If 1Q is better most likely price will be able to maintain/goes up
                                                           If 4Q is better most likely you will see ghost

In Financial Reporting, comparison of Latest Quarterly Report must be with YOY Quarterly Report.
Means 1st Q 2014 vs 1st Q 2015.

What To Do Next?

Looking at this scenario, I would not want to touch PENNY STOCKS / SPECULATIVE COUNTERS. I value my hard earned money more. =)

Disclaimer and Declaration

The full content of the article is for educational purposes only and should not be used as investment recommendations. We are not responsible for all investment activities conducted by the participants and cannot be held liable for any investment loss. Examples of specific shares may be citied for illustration purposes.


Humble Pie

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