Hot Stocks XOX falls as much as 9.7% on profit taking

Hot Stocks XOX falls as much as 9.7% on profit taking
Business & Markets 2012
Written by Janice Melissa Thean of theedgemalaysia.com
Wednesday, 19 December 2012 13:09

KUALA LUMPUR (Dec 19): XOX Bhd shares fell as much as 1.5 sen or
9.68% to 14 sen this morning as investors began to take profit after
recent surge in the stock price.

At 12.30pm, shares of loss-making mobile virtual network operator lost
0.5 sen or 3.23% to 15 sen on trades of 12.64 million shares.

The fall today follows two days of massive surges with highs of 30 sen on
Monday and 22.5 sen on Tuesday.

"As the volume was high on Dec 17 (Monday), it is expected that this
stock can only rebound after the force-selling on Dec 21, 2012," senior
remisier Goh Kay Chong of SJ Securities told theedgemalaysia.com.

According to Goh, investors had begun taking profit on Monday, following
a steady rebound since Dec 3.

"The stock had slipped to a historical low of 10.5 sen on Nov 30 and the
investors or speculators thought that it had to stage a rebound then.

"Therefore, they started to buy since Dec 3 and the stock slowly and
steadily moved up within 11 market days to the high of 30 sen (Dec 17)
before it retraced to 20 sen [at Dec 17 close], meaning it has gone up
185.71% within a short span of time," Goh explained.

XOX was in the news recently when it announced plans to turn around
the company via its Voopee mobile application.

The Voopee application, which is slated to launch by next month, allows
smartphone users to make calls and send SMS at lower rates as it runs
on Internet data.

However, subscribers need to pay a commitment fee to continue using
the service. For this reason, Goh said there is cause for the stock to
move upward.

"Investors perceived that this service might improve the company’s
financial position therefore they jumped in to buy the stock earlier," he
said.

The ACE Market-listed XOX has been bleeding financially since its initial public offering (IPO) on June 10, 2011. Between then and the financial quarter ended Sep 30 this year, the group lost RM54.84 million.

In the financial quarter ended Sept 30, 2012, the group recorded a net loss of RM1.53 million on the back of RM9.19 million in revenue, versus a net loss of RM6.54 million for and RM8.98 in revenue for the year.