Dayang: Pride comes before the fall
by Koon Yew Yin
Both the TA and FA are bullish for Dayang. Smart investors who knows how to read charts should buy more Dayang instead of selling.
Obviously, they are wrong to assume that the proposed right issues of 1 share for 10 shares will dampen the share price.
According to SC rule, the company can give up to 50 percent discount from the average price of the 5 trading days prior to the last day to buy the right issues.
Like all smart company directors, they will price the right issue shares as cheap as permitted by SC rule to benefit all the shareholders including themselves.
The price will be 80 sen per share if the 5 days average price is Rm 1.60 according to SC rule.
Since the price has gone up by 6 sen yesterday, it shows that there are more investors wanting to buy more Dayang so that they can buy more shares from the right issues at a 50% discount.
Based on the price chart, it looks like the share price will continue to go higher and higher.
I believe it will be above Rm 2.00 when the 3rd quarter result, ending September, is announced before end of November.
https://klse.i3investor.com/blogs/koonyewyinblog/