WMC: An Anatomy of a Sell-down

At 9.00 A.M., as the market opened, many Joe Sahams, in panic stations, were ready to dump their WMC shares after reading the Business Section of THE STAR or THE NEW STRAITS TIMES. They collectively offered them to the greedy buyers at RM1.30; 18 sen below the closing price of WMC yesterday. It was snapped up immediately. Some 382 lots changed hands. Then the next buyer appeared at RM1.21. They gave him all he wanted. This panic selling lasted for half an hour and abated only after 9.30 A.M. Then, the see-saw price movement took over.

More sellers came out from the woodwork and bargain hunters came out in strength. The tug of war began. Most blocks traded were below 100 lots though there were some in the 300-380 region. Finally buyers won hands down; pushing WMC to its knee as it fell on its butt at the RM1.04 level.

After some firming up, it rebounded to touch RM1.23. However, like the proverbial crabs, bargain hunters again pulled down the prices back to RM1.07. Basement price hunting won the day. After hovering at the RM1.09 to RM1.11 level it finally ended the day at RM1.11 for a 37 sen loss.

Volume was heavy. Some 5 million shares were traded.

So, let us see how long this fear factor will reign supreme. Once the smart "in the know " investors have bought their ''lion share'', WMC will be pole-vaulted up again. I think this will happen soon.

In case WMC continues to fall the next few days and dip below 84 sen, start collecting....

Heartsong.