Today the drop in penny continued. After this shattered confidence in the market, we think that it will take quite a bit of time for confidence to recover. The leaders of penny, namely Liongold, Asiasons and Blumont has become a shattered dream. It seems they are given the "Penny Idols" status due to their meteoric rise.
This year, there are other penny stocks that seem to do relatively well too. Today they suffered a drop just like the trio. Ossia, ISDN and Mirach Energy also suffered a 20-30% drop today after seeing the same rocket rise this year.
The paradox today is that STI is in the green for the most of today. Currently STI is only 1 point down.
This morning I received an off-line interview in the morning (when I am sleeping still, ha!) by FM958 to talk on the status of penny, and whether we can buy at such low prices.
My view is that BOTH the big players and retailers are hurt in this process. And it will surely also take some time for the big players to recover before daring to enter these pennies again. Retailers will stay on the sideline now.
Avoidance is the best policy for these stocks!