Best World   

THE BEST IS YET TO BE

ZERO volume today.... 

 

In the stock market, "Buying Low, Selling High"  is the only thing that works in the long run... 

 

I think whatever counters, you should know when to enter and when to take profit.

I have taken profits during the peak and shortly after the bonus share. I'm still holding on after going in at around 60+ cents. Though now in paper loss, but is ok. Looking to average at this price.

Do your research before buying... i have done mine, and i'm comfortable at this range. Now just wait for pple to throw at a lower price. 

 

 maybe they are the among the ones who are responsible for causing a rapid drop in price.

 

now the two hardcore best world supporter gotta diam diam and suck thumb and suck their losses.. Well So head are too tuff to teach them anything. Sold it last year before the bonus shares and never look back.. no volume counter how to play?

 

No doubt that Bestworld price has been subjected to selling for the past months. Well it happens to most counters. Bestworld will be no exception. Prior to that, it has been quite resilent, till lately. The consolation is that there is no sign of big investor dumping.

Well the chart below does not take into consideration of the bonus share. In fact price has dropped about 1/2 instead of the 2/3.

I'm not too concern abt inflation, i'm more concern abt margin.

For me, price has come to a favourable entry. Shall wait for the fearful to throw at a lower price.

 

 

Technical indicators have been bearish since the bonus shares were listed in 9/07. Indeed Best World has been falling since then, which FA people have failed to notice. Take a look at the beautiful charts below. Before the bonus shares, BW was pumped up. Ex-bonus, BW fell below the 200day MA (blue line) in 10/07. This indicated a long-term bearish trend. And you can see that BW was dumped all the way and has never recovered or looked back.



Best World has plunged to almost 1/3 of the price on heavy selling. This happens to people who love their stocks.

Fundamentally, the Asian countries, which Best World are in, are all experiencing economic slowdowns and inflation at 20-30 year highs. The people would rather use their hard-earned money to buy food and other necessities than BW products. You have to look at the big picture, rather than the small picture. Is my reasoning logical?

 

Best World has been in a free fall since the bonus shares were listed. Non-stop heavy selling the past week.

 

fyi for those in: the report was factually inaccurate. The sale was not of 550,000 shares as reported in the news article. It was of 1 mil shares. at 54c. The BUSD data shows it very clearly. Repeated from my previous post:

"there is little BB action in this counter actually. If it's a local BB, it's a small one. The major dumping was due to a one million shares sale on wed/thurs at 54c. Likely to be insider trade/top 20 shareholder trade if so, as it represents 0.5% of the total share capital of the company (fyi, usually, the smallest of the top twenty shareholders will hold about 2% of a company's stock, or less.). "

Fundamental-wise, nothing changed really. just to expect some headwinds from oil prices increase and the USD depreciation. key will be how their indon part of the business has grown: look out for it in the AR released in the next few months. If that is a growth, then it's no problem.

Wait for the overhang and shock to be absorbed, the stock should slowly creep back up; unless other institutional investors decide to follow and dump.

 

Eldin... :)

As usual, we can expect 'meaty' and enlightening stuff from you... 

MLM is an excellent business model which has a proven track record, with virtually
unlimited income potential for individuals. But the vagaries of the stock market also has to be
taken into account, since the best of companies, without exception, are subject to the ups and downs
of the stock market.

But in the long run, things should look good again.

 

have u got an answer to yr question?
if no, it's there at www.nextinsight.com.sg

 

scotty      ( Date: 08-Jun-2008 15:26) Posted: This stock does MLM business right? Why the sudden sell-off last week if everything is within expectations?

 

just read their AR and saw the technicals for fun.

FA-wise: the company is ok, though nothing remarkable. Previous PAT grew by 7.2%, NAV at 23.12 cf 22.06 in 2007. EPS also grew, 1.1 cf to 1.03 previous year. Expenses increased, however, by about 10%.

Some headwinds though: Indon is their major market of the direct selling; but the biz is losing quite a bit in Malaysia. Also expanding into china. Oil prices as well as the depreciation of the USD will give them a double whammy, since their stock currency is in the USD: they're forced to take a forex loss each trade they do. Also, they're highly dependent on freight charges which have been going up since the oil prices spike. They're in vietnam too, which accounted for a part of their previous, rapid growth. Vietnam (if you follow the papers) is on the brink of a collapse though. And if the Joymain acquisition goes through, you'll expect NAV to fall by quite a bit: they're waiting for regulatory approval for this.

Technical-wise:

there is little BB action in this counter actually. If it's a local BB, it's a small one. The major dumping was due to a one million shares sale on wed/thurs at 54c. Likely to be insider trade/top 20 shareholder trade if so, as it represents 0.5% of the total share capital of the company (fyi, usually, the smallest of the top twenty shareholders will hold about 2% of a company's stock, or less.). In which case, caution is advised: likely they know of something that we don't.

Also need to be careful because this counter's share float is very small, and the buy support is thin. Hence likely to have a scenario whereby one large lot dumping will drop the price, and panic others into selling/margin calls. Vicious cycle ensues.

o/w, a fair value support for the counter is about 45c. RSI and money flow way oversold; don't think it can go down much longer. the previous support of 43c is the level to watch. If additional dumping occurs, then it's likely to be as with the case of sembmar before the scandal broke: there was major dumping by fund houses then, even though nothing was apparently known to the public.

yes scotty. MLM accounts for 98.4% of their revenue.

 

This stock does MLM business right?

Why the sudden sell-off last week if everything is within expectations?

 

HEAVILY PANIC SELLING ON MONDAY

GOOD LUCK

 

who is that bloodx one mass selling??

Hopefully, all expansions and new product schedule remains on track and half year results on 7 August 2008 meet the expectation, so that there are some positive impact to the price.

 

Looks like I was wrong. Still falling.

 

Best World may recover a little today. Let's see what happens.

A 30% drop in the stock is unprecendented. I wonder who's doing the selling. 

 

TA shows around $0.40.

 

just came across some postings at wallstraits, which seem more sensible and rational.

http://www.wallstraits.com/wsforum/showthread.php?tid=832&pid=8761#pid8761

 

how much this company worth then? 0.30 ?

zhuge_liang      ( Date: 05-Jun-2008 21:17) Posted: Fell below $0.50 as I mentioned 2.5 months ago. Plunged as much as 30% to $0.43 today on very heavy selling! FA people are probably still holding. zhuge_liang      ( Date: 20-Mar-2008 00:16) Posted: Overvalued. This stock will reach $0.50 and below.