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Total Clearing of the Margin Liquidation Queue (The T+2 Cycle)
The main driver right now is forced broker selling. When retail and leveraged accounts get margin-called, brokers give traders 2 trading days (T+2) to post cash. If they don't, brokers force-sell the remaining shares at market open on the third day. Because the crash accelerated, new forced margin calls were triggered at RM0.50, RM0.35, and RM0.25. The cascade will settle once the final wave of forced retail liquidation clears out
The sell-off will only stop when structural market conditions are met. During panic liquidations, the market operates on mechanics, not fundamental logic.
From what is observed for the past several months or so the volume has been huge, this is typically a syndicate play, this counter so diluted that the syndicate can easily manipulate the share price for their own benefit, right to left and vice versa, they tried for a long time trying to make the price go higher for the retailers to bite but just too bad many retailers not buying in until last week the price cannot hold any longer due to many sellers, then came the margin call tsunami....
The Technical Bottom: The stock has officially hit a fresh 52-week low at RM0.590. When a stock enters "capitulation mode" (panic selling), it often takes a few days for the margin calls to clear and for buyers to evaluate true valuation.
Extreme Low P/E Valuation: At RM0.595, the stock is now trading at an insanely low trailing P/E of just ~4.8x. Fundamentals say it is severely oversold, but short-term sentiment is in panic mode.
Forced Margin Liquidation
When a retail-heavy stock falls past major technical floors like RM0.650 on high volume, it triggers automatic margin calls across investment banks. Day-traders and leveraged accounts are forced by brokers to liquidate immediately at market price, creating a domino effect that drives the stock down into a sharp sell-off.
Hi there, not really sure, I think up to O.52? then it will take a breather, not to forget it has been up all the way since the buy back, but then again if the buy back continues, I think the uptrend will continue too (what if the next quarter is even better) , also if u have noticed the directors have been off loading their shares to someone, just maybe soon a new substantial shareholder may emerge...all the best ya..
Doubt can get O.68 dy due to the div announcement wh it wil be X on the 18 Aug, but not only tat ya, their quarterly report (hopefully good) wil be due by end of ts month, and there might be an interim div like in the past yrs reporting I think...
