Monday, May 31, 2010

Alert - Kenmark share price dropped 90% within 1.5 trading day

You might have noticed that the trading volume of furniture manufacturer Kenmark (7030, Consumer Products) surged during the last trading day (Thursday 27 May 2010) as well as today morning. This has made this lowly traded stock suddenly emerged to be the top traded share this morning.

This is not a good news though. Its share price dropped tremendously with the sudden volume.

Kenmark's price used to hoover around 85 sen for a long time. However, by today 10am, its price has tumbled 90% to around 10 sen only, as a result from sudden drop last Thursday and this morning.

You can obtain information of the cause for this unusual share price movement in Bursa Malaysia's website in a reply filed by Chong Fui Tzy in respond to its unusual market activity (UMA) query.

It is reported that their Managing Director, James Hwang, is missing in action and uncontactable. Their Deputy General Manager, Goh Kim Chon, together with their Finance & Admin Manager, have both resigned suddenly.

"The Independent Directors had on 29 May 2010 morning gone to the Company’s premises at Port Klang and noted that the premises have been sealed and a security guard has been placed to secure the premises."

Their creditor, EON Bank, has sealed their factory and is taking action to take over their asset. Certain suppliers had gone into their premises to recover stock and raw material from them.

Shortly after the UMA reply announced, Kenmark has been suspended. It will resume trading by tomorrow (1 June 2010).

This is an alert to all speculators who have bought or intend to buy the shares of Kenmark: make sure you really know what you are doing.

Disclaimer: This article is intended for sharing of point of view only. It is not an advice or recommendation to buy or sell any of the mentioned stock counters. You should do your own homework before trading in Bursa Malaysia.


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when the company share drop too much, shareholder money will be 冻过水 said... Reply To This Comment

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