Transmile revisit - TA works better

On May 4th, one of my explorations churned out Transmile which was the darling of all those fundamental analysts back then. One of the main reasons for their love for this stock is of course the presence of the "sugar king" as one of the major shareholders. For those 'experts', his presence somehow sort of 'guarantee' the company's performance and well beings.

Of course then came the creative accounting fiasco which tanked the share's prices from a high of 15.20 all the way to the low of 0.48. Truly another one of those from heroes to zeroes classics story. What really aroused my hostility to those 'experts' (who I often called them by another name - Fun Cheongs) was that during the course of its price collapse, at least 2 of them wrote in the printed media reassuring investors/shareholders NOT to worry as 1) the 'sugar king' was still in and has not bailed out and 2) they named a US fund which was buying into this stock then. They cited that as the ultimate sign that even the kwai lo have found that this company was 'fundamentally' ok. Of course, prices went further southward and I personally know some investors who were thinking of passing this share to their children were just devastated.

Coming back to May 4th, my exploration told me that this stock may be getting to blow up because there were a few subtle signs given out by the indicators. So I just blogged it and brought it to some of my friends' attention. Yesterday its price went limit up because there is some rumor going around hinting that the great 'sugar king" (yes, him again. Is he god?) may be injecting new capital to get this company back to its past glories.


《東方財經》吉隆坡5日訊- 由於市場傳言金鵬集團（TRANMIL，7000，主板貿服股）大股東丹斯裡郭鶴年有意重組面臨嚴重虧損的前者，導致該公司股價在今日早盤飆升至漲停板水平，並引起交易所的關注，要求它解釋股價異常波動的原因。

I often emphasize one of the wonderful aspect of technical analysis is that I often find out what the big boys are doing underneath the table way before the news becomes public. Such is the case here again since I certainly do not know the 'sugar king' or any of his people.