Cosco Corporation (S) Ltd - 24th December 2015
Cosco has been going higher and higher for the past few days since 18th December from 29 cents to 53.5 cents. The prices went up for the past 5 days has been overly extended.
People are merely chasing for the share prices for betting that the parent company may announce some good news to support the company.
Today - 24th December it has formed a doji and closed high at 51.5 cents. From TA point of view, it seems that it has to take a breather /retreat before loosing steam. If not, it may fail and the price will come down drastically in time to come. Kindly trade with extra cautious(trade /invest base on your own decision).
Well. The prices is basically up mostly based on speculation. End of the day, when reality kicks-in prices will start to reflect the true nature of the business/faith when company announcing its Full Year result which is expecting to announce a significant net loss for its FY2015 Results on 19th February 2016:
quote "The Board is of the view that the 4Q2015 Results and its FY2015 Results will show a
significant net loss as compared to earnings recorded in the corresponding period of the
previous financial year. The expected significant net loss is mainly attributable to (i) the
continuing depressed state of crude oil prices which has had an adverse impact on the
global offshore marine industry, (ii) the slump in the shipbuilding market which has
negatively impacted the Company’s shipyards; and (iii) the languid dry bulk shipping
market which has brought great pressures to the Company’s dry bulk fleet operations. As a
result of adverse market conditions, in fourth quarter ending 31 December 2015, the
Company’s shipyards incurred writedowns of certain inventory and provisions for
impairment of trade receivables for certain contracts, which are deferred or may potentially
be cancelled.
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