The listing of Lotte Chemical is really creating most of the Malaysia stock market history record. In fact, I did write and share few of the points on the weeks before the listing.
It was one of the least listing in the market, with the first day's stock price closing below the IPO price. The IPO price was RM6.50, and the first day, it close at RM6.38. Then most investors thought that the price may just up down 5 to 10 percent at this level.
However, it created another history record when investors see the stock price tumble another 30% to RM4.30 when the company announced worst than expected quarterly report on end of July 2017.
That time, few of clients ask my opinion if they could now invest into this stock or not.... I told them technically, it's not advisable to catch the falling knife. However, if the knife already fall on the floor, it's fine to catch it.
In other words, one need to wait at least 10 percent for the stock price to recover from the low of RM4.14. Means one day, if you notice the stock price break up above RM4.55, then you may just put your order straight at the market price.
This happen on yesterday, if one checked the closing price, it was RM4.70. If you able to follow the market price or manage set the price alert system, then when the price hit above RM4.55, it's the time for one to enter the position. Even if you only check the stock price after market closing at RM4.70, it's still fine to enter immediately when stock price open this morning at RM4.75.
This is one of the way how investor can catch the falling knife. I wish those who successfully catch this stock at RM4.75 and below Good Luck and let the profit run until the stock price stable again before calling to close the position.
http://bursastory.blogspot.my/2017/08/lotte-chemical-catching-falling-knife.html
