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发表于 7-11-2011 02:27 PM
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KNM （7164） - Enrouting a potential mad charge ahead
Yeah, it is KNM, yet again. This time I think that they will be some high tension trading coming forward in the coming trading days, with a potential mad charge ahead.
Why so?
KNM had taken a bad slide since the end of May 2011, and had only continue to slide further downwards into the drains until the share see some side way trading recently.
The red line represent the downward trend line, while the green line represent a new trend after taking a 4 month slide, reach new lows. Personally thinking, this stock had hit some real bottom, and it should be time to take a turn on this. While some initial effort had been seen in trying to push the stock higher, I think in the coming days, there will be more testing coming in.
But upon all, my reason in covering it is because of the expiry of the warrants - KNM-CI.
KNM-CI, issued by OSK, expiry at 21 November 2011, could had catch some private equity attention in this play. It had been a quite popular play for warrants that are heading for expiry.
If you had remembered how Affin-CD had shoot up from RM 0.005 to RM 0.04 cents when Affin took a huge surge upwards, will it happen to KNM here? From RM 0.005 to RM 0.04, although it is small in difference, but in percentage wise, this is a 800% increase already. At huge volume, that would really interpret into some big figures altogether.
Of course, through my experience, most of the call warrant that are heading for expiry, usually those that had been hit down, will go through the pre-expiry frying syndrome. There are ample of examples in the market, and I am not taking out chances that KNM-CI will repeat such act.
In my opinion, KNM will be really worth a monitoring as there are a lot of other call warrants that had taken serious slide as KNM had slided out from it's peak point. At the price of RM 1.35 as of today closing, KNM will be worth a stock to hold for the coming few weeks.
However, do remember that this kind of play style will definitely exposed oneself to great risk that are lurking just at your doorstep. Anyone taking up the warrant should be aware on how much and how great a risk that he/his is willing to take up. Be ready to lose up everything should things go busted.
All the best, and happy trading. |
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