WMC: Its R and R for Now

Welli-Multi Corporation (WMC) was chased up hurricane-like again this morning. It went up to RM1.92 before sliding down after the gila rush hour traffic. Let us see its equilibrium price. Imagine a rubber band, when you have stretch it, it will vibrate to its highest point and then to its lowest point. Then it settles down into a trough. That will be its fair price for the moment. If the big boys wanna have fun, they will jack it up once more for another ride. So watch out!

After scaling to RM1.92 it fell back to RM1.59 but ended at RM1.67 for a 6 sen gain. Volume was about 14 million shares.

Now, we wait for the next spike up. And when will that be? My five sen stargazing - News that SC has approved WMC reports will sent the price up again. Next, when gelatin equipment is being approved for purchase and lastly when the gelatin capsule machines are bought from India. Extra bonus news will come when the Chinese machinery company buy a stake possibly at a higher price than RM1.50. Other parties will follow. Watch out especially for well-connected Bumiputra businessmen and GLCs.

Have fun. I did writing the saga.

Heartsong