Tuesday, 24 June 2014

King Wan Update

The sudden surge in King Wan's pricing on 20th June 2014 comes to questioning.

It touched a high of 0.370 and closed at 0.355. The strong resistance of 0.340 has been broken within a single trade. Some big fish bought 1628 lots and cleared the 0.340 barrier. King Wan's Volume hit a 1 year high of 9.57m shares that exchange hands. The last time it's volume was so thick was on 29th May 2013 (a year ago) of 18.1m shares.


So the question is who bought and cleared the 0.340 barrier? And a minute later 0.345 is being cleared with another single trade. Some big fish is probably buying up King Wan's share. Could it be an insider buying?

A fellow VBs (Thank you, BestPrice) tested water and sold some of his shares at different prices. CIMB is the opposite transaction. From this, it is most likely a retail investor that is buying up the shares and not insider buying (My assumptions).

The surge in price is also not due to the sales of KTIS because KingWan did not made any news on it. I'm not too sure has KW sold any KTIS shares as of yet. For that I have to confirm with them. Anyway, KTIS is currently trading fairly below it's IPO pricing, hovering around the range of 9.5 - 10 Baht/share.

Right now, these are just short term price movement or maybe some market noises. Meanwhile, I will just ride on it and wait for the next round of dividend which will XD on the 5 August 2014. SGD 0.015 will be issued. So with current price at 0.355, a full year dividend this year of  SGD 0.02 will have a yield of 5.6%. Still quite yummy if you are buying into it now.


Cheers!
Little Boy


9 comments:

  1. I bought it at $0.335 and will hold it for longer term! ;-)

    ReplyDelete
    Replies
    1. Hi Richard,

      Not too bad. Yup, I will be keeping it for long term too. Will unload off once it reaches above 0.400 which I am confident that it will.

      Delete
    2. "loyalty" is important but must also remember to collect your "royalty" too

      hoping to see you collecting your royalty in the 0.400 range one day; and not deciding loyalty rules by then.

      Delete
    3. Hi MH,

      Yup, sure will do. When the time comes I will analyze my position again :)

      Delete
  2. Isn't it dangerous to invest using pricing and its popularity? Anyway l reckon king wan is a good company to invest in.

    ReplyDelete
    Replies
    1. Hi Money Honey,

      Definitely! Price and volume is just one indicator which is not enough to determine to invest into. Of cause, I have done my homework. You may like to visit some of my older KingWan's post in my blog.

      Yeah, KW fundamental is strong and it will be strong even up till FY2017, where their M&E (Their core business) contracts are keeping them busy.

      Cheers!

      Delete
  3. Replies
    1. Thank you MH :)

      Happy Investing too!

      Cheers!

      Delete
  4. What I can say is that the current price is almost equivalent to the book value.

    ReplyDelete