Puncak - It is just plain fishy!

As I had been monitoring Puncak lately after I had made a coverage on Puncak, prior to it's limit up 9th of February 2012, with more than 30 millions share transacted, and ending with a strong note at RM 1.89, I had started to discover some irregularities in the trading of Puncak, whereby I believe the controlling stake party are behind something is even larger than what we are seeing in the very surface manner.

Puncak and KHSB had been a pair of high correlated counter from the start of January to the end of February.

As of what you are seeing now, their up and down are almost identical and similar to each other, doesn't this resemble one of the fishy part of the whole thing?

I believe that the limit up of Puncak on 9th February 2012 is filled with something great in behind, that could put Puncak into volume hitting a high note breaking 30 millions. However, things had not been great for Puncak after hitting a limit up, with a series of sell down happening.

With hot news of Puncak getting privatize which is spreading like hot cakes in the media and internet, especially in the midst of the netizens as well, I believe somehow, this news might be something that had accidentally got leaked out somehow. However, what is more blasting is that KHSB and Puncak both received legal suits in the same time, what a coincident?

Throughout the process of monitoring the trades of Puncak, I believe the range from RM 1.89 to RM 1.2x is the range where the controlling party are giving chances for those people who had bought lower to sell back to them at a price that they want, while resemble a process of shaking out the weak holders and contra takers as well, as those freaking big lots movement are just fishy.

I believe time is tight in Puncak as there might be major corporate events that could be taking place, and with the latest fishy movement from the controlling party, today I had sighted a huge 29k lots that was being placed at RM1.25, surprisingly, with a buyer that was matching at RM1.25 with 29k lots as well. But as retailers are coming in, things had got built up, and in the end, the huge 32k lots had took hold of RM1.32 as a closing point, with around 37k lots queuing up to take it.

I truly believe that the controlling party behind are having a tight time frame, and was forced to execute such a move to trigger a panic from the public holder.


What could be behind the true story?

Let's assume that should the privatization of Puncak is real, and that the target price of RM 2.20 is intact, that could be a huge bonus for the controlling party to try to get as much share as possible at a lower price, which includes movement like this. Imagine if things keep buying up from RM 1.89, there could be literally nothing left, no margin, for the controlling party (Insider) anymore. So, in order to make a good profit from the privatization, controlling party will have to take as much shares as possible during the period of time, and sell them off when the privatization comes into the pictures. Doesn't this the way insider operates? Doesn't this the way cronies operate?

However, all these are just my own assumption after taking into account the following happening in short:-
1.) Limit up at RM1.89 with huge volume
2.) Rumors about privatization at RM2.20
3.) Weird transaction that was pushing prices down
4.) KHSB moving in the same direction
5.) Legal suit happening at the same time with KHSB
6.) Fishy lots on ending queue of 29 Feb 2012.


I anticipate that there will be further drama in Puncak, not erasing the fact that they could really be going to be privatized as well. This is solely just my opinions and views on the development of Puncak. All decision made will be at your sole discretion.

Cheers and happy trading.