Penny Stocks In 2013
What are the odds of a pullback here?
Baker Technology Ltd. (568.SI)
TA Experts, please advise.
this smacks of a PUMP & DUMP to me
first on the basis of TA
I don’t have my normal tools as this company is not listed on Stockcharts.com but this will suffice.
Note how little the volume was prior to Feb/2013….it is negligible compared to the volume of the past couple of weeks. Don’t look at average volume as that has been seriously affected by the recent pumped trading days.
A pullback has already occurred…it fell from high of $0.485 to where it is now $0.42…that is a 6cent or 12% pullback
It is now in a consolidation from that rise and will go sideways (maybe) until the bollinger bands tighten…it seems that $0.42 is a support right now but it is being constantly tested in the last few days and could break….and the share price could fall further to about $0.375 and if that happens I doubt there will be a recovery to the $0.485 levels in the near future and every possibility of further drop to $0.325 where it was before the pump.
I definitely think it is a pump…first because of the volume profile in this chart…very characteristic of a pumped stock.
look at the price history of this stock….very little volume except for 2 other Pumped sessions:
Early 2007 when it was pumped from $0.05 to $0.55 (a heck of pump but you see how the volume and price died soon after)
About May 2010 it was pumped again from $.30 to $0.55 this time it lasted a much shorter time before falling.
The pattern for the stock is well established…and in reading the glowing reports of their financial statements…I am struck by the thoughts of “Why is this stock worth so little???”, IF it is doing so well.
Here is their last published financial report….not very professional IMHO…looks like a video game treasure map…cute…but I think it is designed to camouflage the contents.
You do notice though if you dig that over the last 5 years their AFTER TAX profit is falling (page 31 of the map) but this is 1 year old
I dug around for another more current document and you see the last 3 months have a reduced gross profit compared to Dec /2011…the yearly comparison looks better until you realize that most of that money in the final total is from the sale of the disposal of a subsidiary, PPL Holdings Pte Ltd for $58.2 Million…that would be a one time gain and I wonder how much that subsidiary committed to bottom line earnings that they have lost now.
What caused the sudden interest (what was the PUMP info)?
Well there it is….a huge dividend IF IT IS PASSED during a general meeting April 25. So Again I wonder…why is a low penny stock offering such a high dividend…desperation???
I would not stake the family farm on this company recovering to $0.485 again….it does not have a history of maintaining the previous pumps and there is no evidence this will be any difference. That Financial statement while cute is definitely unprofessional…something a teenager might design…not a serious contender in the oil business…though this is Singapore…who knows
Hope this analysis helps you….
BTW…. TA + FA trumps TA and FA by themselves. Both help resolve a problem
Lazy Stock Wealth: Learn How To Trade Penny Stocks