21.2.12

Yoma - Power Rally coming to an End?

In the recent weeks, Yoma has soared from a mere $0.08 to a maximum of $0.57 - An IMPRESSIVE Gain of 612.5% in just over 3 weeks!!!

What has propelled this stock to All New Time Highs and is this going to continue further? Let's take a clearer picture on its fundamentals + technical chart.

Clicking at http://www.yomastrategic.com Investor Relations to find out about its Financial Information has resulted in a DNS lookup failure. Clearly a Gray Area that the management should resolve to provide more light on the transparency of the firm and its financial results.

Nevertheless, we went to the newsroom in SGX and found out its Financial Highlights:

i) Revenue increased 141.5% to S$11.22 million
– Significant increase in sales of housing and LDRs as a result of favourable
market sentiments in the real estate sector in Myanmar

ii) Profit after tax attributable to shareholders recorded at S$2.79
million
– Largely due to fair value gain by WSI, an associated company

iii) Healthy balance sheet with cash & balances of S$2.8 million
– Generated S$1.1 million of cash from operations

Not really what people would like to see if they are paying for a $0.40+ per share...



Chart shows that Yoma is going downtrend from now. A Long Bearish Engulfing Candle has capped the limit to where it can go and based on the reversal patterns and decreasing volume, this tells me that the price is probably going for a consolidation or even go lower.


Chances are, people are going to wake up realising that this ultimate bubble has run out of steam and go into a scurry to get rid of their existing holdings. Thus, it is a clear direction to Short Yoma, (you can probably do this intra-day... Naked Selling and Buying it back at end of day!)

No comments:

Post a Comment