Penny Stocks (Dengue) Fever

Penny stocks fever turned into dengue – haemorrhage.

As a follow up to my post in September, I decided to revisit that list of biggest gains to see where they are now.  https://tradehaven.net/market/small-caps-heaven-in-singapore/

PENNY STOCK LOSSES

Golly, I think some people are burning and yes, I have been informed I missed out Sky One and Liongold but my initial list was ranked for companies whose stocks rose by 100% in the 3 months leading to 26 Sep 13.

Nonetheless there is a witch hunt going on. And the cross holdings in the companies here and not a day or two where the BT does not report some fishy business in share prices, the latest being Sky One as I understand (because I do not subscribe to BT).

The 8 companies : Blumont, Asiasons Capital, Liongold, ISR Capital, Magnus Energy, Innopac, Ipco and Annica Holdings so far as reported in the Straits Times.

We are not alone !

I was fortunate enough to come across a new piece of research out of UBS yesterday on Malaysia Cross Connections and the wealth of information and data that it presented.

  1. It is estimated that 41% of Bursa Malaysia’s MYR1.6 trillion stock market capitalisation is owned by government controlled companies or companies in which the government has vested economic interest.
  2. There are 13 major families or groups.
  3. Since the global financial crisis, Malaysia has had record levels of IPOs, M&As and rights issues.

The gist of the report is that there are opportunities aplenty across the Causeway and the outlook is for an increase in offshore opportunities and for the government to divest their stakes in the GLCs (good idea, especially when the market is trading near record highs).

Wow. Blumont should have gone and listed themselves there ! But wait a minute, aren’t they from Malaysia ?

Enough said, I am scanning for new stuff to pick up during this period of distress sales. Did anyone managed to catch Sysma by the way ? Or YHM last month ? Who cares about growth in revenues or valuations, like my broker says. Throw away those textbooks and take the leap of faith.

By the way, I am looking at Inovia US again, it is down about 50% from the high.