The KLCI chart shows that our KLCI has been dropping in the last 1 year due to various reasons. Fortunately, Dayang has been go up sharply in the last 2 months.
Dayang price chart shows that its price dropped sharply in May to a bottom of 90 sen when the company announced a small loss for its 1st quarter due to the monsoon which has affected its operation. Dayang has a few billion Ringgit contracts for the maintenance of oil rigs in the open sea.
You must notice that the price started to drop a few weeks before the announcement of the poor result. It means that some people knew about the bad news before the announcement. Since then the price has been going higher and higher from 90 sen to Rm 1.50 per share in the last 2 months. It has gone up 60 sen or 67%. I suspect many people already knew the company will report good result for the next quarter. According to SC rule, the company must make announcement of its quarterly result within 2 months. That means the company will make the announcement before the end of this month.
In anticipation of the good result, many rich funds are buying aggressively. That is why the daily traded volume is a few tens of million shares. Who has so much money to buy so aggressively?
As I said before, no share can continue to go up or drop for whatever reason. After some time, it will change trend. That is why the price drop 6 sen yesterday. I don’t know if it will continue to drop or the rich funds take advantage to buy at cheaper prices today.
If you read this piece carefully, you should know how to anticipate to make more money.