[sgbuffett]

I saw it shot up 100+% today to $1.56...let me explain how I decide to buy  this stock and it is nothing complicated.




Here is my transaction.



On Dec 2021 I shared thus stock to buy as 2022 stock pick

https://sgtalk.net/Thread-My-stock-picks-for-2022

I studied the balance sheet and found the company had a lot of cash so I bought the stock. ..

After i bought the stock it kept falling to 59cts.
Then it shoots up to $1.56 within a day.

Often the movement of a stock has nothing to do with what the stock is worth.

The company has $1.28 cash per share a  stock price was 72cts at the time I purchased the stock. 

But nobody seemed to be interested in investing...and stock continued to go down until today.

The market cap after today's rise is 56M...the cash alone is $48M.

[sgbuffett]

I recommend the stock for purchase jn Dec 2021
as my annual pick. I explained at that time I found out the company has aloh of cash.

Here is the thread:

https://sgtalk.net/Thread-My-stock-picks-for-2022

[ArielCasper]

Stock don't offer dividend. If not for the takeover, vol is v thin and yr money will just be stuck

[cwc29]

Stock don't offer dividend. If not for the takeover, vol is v thin and yr money will just be stuck

Yalor this type of stocks with Low vol easily to manipulated only ah gong kia will
Hoot and keep… tio boh ?! 

[sgbuffett]

Stock don't offer dividend. If not for the takeover, vol is v thin and yr money will just be stuck

What you any its correct it's a long waiting game.
I cannot tell for sure if it happen this yr or next yr or many yrs from now.

I was aware  this  Tuan Sing holds 80%. I had expected them to give out the cash in a series of dividends but they decided to take over.

How long this type of deals take from my experience can take around 2 to 5 yrs . But if the business is cashflow positive they are under pressure to give out as dividends or delist...as cash piles up.

[WhatDoYouThink?]

if not because of the privatisation offer you'll be stuck at below 0.6 fowewer?

[Cmpunk]

This is not boosting at all nothing to cheer about. I remembered last time Blumont also happened when someone play the stock else forever stuck at a few cents

[Cmpunk]

Mr Butt don’t you tell us about the pick Sunlight ? What happened now?

[sgbuffett]

if not because of the privatisation offer you'll be stuck at below 0.6 fowewer?

Explain why it is stuck forever when company is holding so much  cash...

Any kind of investment one has to wait for true value to be realised...and this takes time.

If the company sit on cash without doing anything the main shareholders  also don't benefit from the cash....as they control the company  to benefit they have to give out the cash as dividends or take over whole company.

The other company that has alot of cash and cash js piling up is Hour Glass. In thus case  the stock price keep rising as both insiders and investors want to accumulate more and more stock as the cash level.increases.

I bought Hour Glass in 2019 and waited it was below $1 for some time.



I expect a takeover but the founder prefer to buy more stock from the market before doing so.

I wrote about Hour Glass in the old forum as stared accumulating in 2019 until 2020

https://sgtalk.net/Thread-The-Hour-Glass...fer-coming