Do you remember our call on UtdEnvirotech? On 21 Dec we called and wrote an article titled "Who is buying this stock - United Envirotech?" At that time the price is $0.435. We said that first target is $0.60 and 2nd target is $0.67-$0.70.
Our last article:
http://www.danielloh.com/2012/12/singapore-stock-tip-who-is-buying-this.html
On 28th December, I reiterated that the professional money still inside and I will continue to hold with them.
Today it gaps up to $0.59 before retreating. (Ouch, 1 ct off my target). Now it is at $0.56. No wonder I saw "them" buying. It is those insiders again. There is a good news on this stock, finally released today.
My philosophy of short term trading is if news come out and gapping occurs, I will liquidate all positions on the first 10 minutes. American stocks is first 5 minutes. Anyway we have since made quite a bit already, it is ok to liquidate first and buy back later. Once this stock stabilise and strength shows again, then we enter.
(Update on 3:54pm) : I have friend who tell me he go into the stock at the open after gapping. Please don't do that next time, especially for a stock that has run for a few days. You can always go in upon consolidation when the selling pressure dies off. Let us wait for a while and see this stock after a few days.
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Good News of acquisition
United Envirotech: Acquisition Of 350 Million Shares Of Memstar Technology For S$35 Million.
09 Jan 2013 10:21
United Envirotech Ltd. is pleased to announce
that the Company has on 8 January 2013 entered into a sale and purchase
agreement with Dr. Ge Hailin , an existing shareholder of Memstar
Technology Ltd, holding in aggregate 277,817,724 ordinary shares,
representing approximately 10.46% of the existing issued and paid-up
share capital of MTL, in relation to the proposed acquisition of
130,000,000 shares for an aggregate consideration of S$13 million and a
sale and purchase agreement with Ms. Pan Shuhong, an existing
shareholder of MTL, holding directly and indirectly 1,040,781,124
ordinary shares, representing approximately 39.19% of the existing
issued and paid-up share capital of MTL, in relation to the proposed
acquisition of 220,000,000 shares for an aggregate consideration of S$22
million...
