Total share: 65.7 M
Total cash (@ 30/9/2013): 24.2 M
Cash/share = RM 0.37
RM 0.295/share to buy a share that has a cash/share of RM 0.37, too good to be true, isn't it?
When the share went up to RM 0.60, I am still holding it. I convinced myself that the relevance now is the NTA price of RM 0.94. That the share is traded at a price well lower than its NTA/share. So I still holding that.
When it went up to RM 1.10, I keep holding. This is where all relevance turns into irrelevance, all rationality becomes irrationality. There is no fundamentals to support this share at this price. Yet I even think of waiting the share to flip twice (i.e. 300% return). But when volume comes, I know that it is time to sell, regardless of what's going to happen next.
Looking back, the price movements come in 4 rounds. I am surprise that I can wait until the 4th round. I might have still kept holding it, had it not been the candle on 2nd July 2014, where the volume is just too scary for me:
I felt a sense of freedom after selling. And I know that is a correct decision to have some cash on hand.
This company has some direct business transactions recently, and it involved a large amount of shares:
26 June 2014: 5M shares dispose through direct business transaction.
1 July 2014: 14M of shares dispose through direct business transaction. (gee, this is substantial considering that the total share is only 65.7M)
And recently many patterns come out, change in boardroom, change in director's interest etc: PNEPCB announcement
The price for direct deal is RM 1.10, which is higher than the current market price. I do not know what is the intention. And there is no point dwelling into the reason, cause you will never know what is going on.
The important thing is: I am free from it. That's it.