I will discuss the psychology of penny stock taking tiger as my case study.
I will be the boss in this scenario.
What is the boss?
1) The owner of the company.
2) Lots of cash.
3) Control the resources of the company.
4) Control the manpower and management of the company.
5) Control the direction of the company
6) Control the information of the company
7) Able to manipulate the company.
But, as the boss I have only 1 objective - that is the maximization of profit.
That is why the boss will always like a company with a few scripts - easy to manipulate and profit.
That's why my first priority of buying is the number of the script in the market and the number of the script in the boss hand together with his affiliated shareholder.
Tiger case study:
Profile:
1) Tiger has around 2 billion shares. WoW! That's a lot!
2) Boss has around 95% as stated in the papers. (I don't think so).
3) Tan Wei Lian has 25% of share in Tiger from 2016 annual report and its all pledge account.
4) The benefit of the doubt: Tan's proxy amount is double, Tan Wei Lian will be holding 50% of the tiger.
5) So, in total Tan Wei Lian is supposed to have 1 billion of share in Tiger pledge to various banks which would run up to RM 50 million at the current price of Rm 0.05.
6) A mere drop of 0.05 sen would cost him RM 5 million of pledging. Not many people can survive a 5 million margin call daily. So, he had to resort to whacking up the price of Tiger at closing.
7) So, he is at the hand of those who long "Tiger" due to his pledging.
Conclusion:
If I were Tan Wei Lian, I know I am at a disadvantage. This is because I have a pledging of RM 50 million. Can I afford to do a capital reduction when I have nearly 1 Billion shares at hand? Definitely no.
As a boss, my objective is to make money. Therefore, I need to get some partners and soak up all the punters with Tigers share around by making sure that they sell when tiger "bloodbath" around....before I push it up for me to sell out and clear all my margin and pledging.
That's why anyone with a bigger debt and pledging is more anxious and affected by the price change than someone who knows the mechanics of the stock market and lowers in debt.
If me, I will give Tiger a chance and look out for Mr. Tan Wei Lian action for confirmation because the number of scripts is always the same, it's only a matter of transfer to weak or strong hands.
Good Luck! Amigo!
Yours Sincerely,
Dr. Lion.
I will be the boss in this scenario.
What is the boss?
1) The owner of the company.
2) Lots of cash.
3) Control the resources of the company.
4) Control the manpower and management of the company.
5) Control the direction of the company
6) Control the information of the company
7) Able to manipulate the company.
But, as the boss I have only 1 objective - that is the maximization of profit.
That is why the boss will always like a company with a few scripts - easy to manipulate and profit.
That's why my first priority of buying is the number of the script in the market and the number of the script in the boss hand together with his affiliated shareholder.
Tiger case study:
Profile:
1) Tiger has around 2 billion shares. WoW! That's a lot!
2) Boss has around 95% as stated in the papers. (I don't think so).
3) Tan Wei Lian has 25% of share in Tiger from 2016 annual report and its all pledge account.
4) The benefit of the doubt: Tan's proxy amount is double, Tan Wei Lian will be holding 50% of the tiger.
5) So, in total Tan Wei Lian is supposed to have 1 billion of share in Tiger pledge to various banks which would run up to RM 50 million at the current price of Rm 0.05.
6) A mere drop of 0.05 sen would cost him RM 5 million of pledging. Not many people can survive a 5 million margin call daily. So, he had to resort to whacking up the price of Tiger at closing.
7) So, he is at the hand of those who long "Tiger" due to his pledging.
Conclusion:
If I were Tan Wei Lian, I know I am at a disadvantage. This is because I have a pledging of RM 50 million. Can I afford to do a capital reduction when I have nearly 1 Billion shares at hand? Definitely no.
As a boss, my objective is to make money. Therefore, I need to get some partners and soak up all the punters with Tigers share around by making sure that they sell when tiger "bloodbath" around....before I push it up for me to sell out and clear all my margin and pledging.
That's why anyone with a bigger debt and pledging is more anxious and affected by the price change than someone who knows the mechanics of the stock market and lowers in debt.
If me, I will give Tiger a chance and look out for Mr. Tan Wei Lian action for confirmation because the number of scripts is always the same, it's only a matter of transfer to weak or strong hands.
Good Luck! Amigo!
Yours Sincerely,
Dr. Lion.
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