1. Ultra-over valued. Definition: A stock price that has ran severely ahead of its fundementals. Usually artificially inflated by syndicates.
2. Many trapped individuals that bought at high price. Definition: These are second tier buyers who are trapped in the stock at a high price by syndicates. They have two mentalities. One - The major syndicate will push it back up one day (It will never happen). Two - They cut loss and cause the price drop further.
3. No profit track record. Definition: Many so-called smart businessman will say the company have good jobs and delivery track record. In reality, investors look at profit track record. With no profit track record, Eversendai is severly overvalued.
Conclusion:
Advise to sell. Target price RM0.50
http://klse.i3investor.com/blogs/Hebeifortune/127572.jsp
