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Thursday, December 20, 2012

Hot Stocks Oversea Enterprise shares played up by licensed proprietary traders

Hot Stocks Oversea Enterprise shares played up by licensed
proprietary traders
Business & Markets 2012
Written by Ahmad Kamarul Anwar of
Friday, 21 December 2012 12:46

KUALA LUMPUR (Dec 21): As some licensed proprietary traders are
trading for direct gain instead of commission dollars, shares of restaurant
proprietor Oversea Enterprise Bhd surged 20% or 2.5 sen to 15 sen from
12.5 sen as of 12.22pm today (Friday), with 9.95 million shares done.
SJ Securities senior remisier Goh Kay Chong advised investors to be
cautious when doing trading by proprietary traders.

"Oversea is in the restaurant business, making over RM1 million in profit
for the last two years. While it is a famous restaurant chain, this may
just be a concept play as the players feel that restaurant business might
be doing well during the festive season," he said in an email sent to

The ACE market-listed company made RM1.085 million in net profit for
its financial year ended Dec 31, 2011 (FY2011). On the previous financial
year (FY2010), it chalked up a net loss of RM324 thousand.
Oversea's shares averaged at 12.7 sen in the past 52 weeks, reaching
its high of 17 sen on March 27. On this date last year, it attained its 52-
week low share price of 11.5 sen.

"This stock hardly traded any volume before Dec 19. They were some
acculumation at 12 sen on Dec 19 and Dec 20. Suddenly, the volume
just came in this morning and the price went up to as high as 16.5 sen,
a gain of 37.5% just within three market days," said Goh.

He also surmised that Oversea may just be played up by the 50-odd
licensed proprietary traders in town. He said these traders play for direct
gains instead of commission dollars.

"Once they made some money, they might just turn to other stocks," he

Goh also said it might not be easy to get out of the stocks once after the
price had surged.

"It's fun to make money. But it'll be frustrating when you start to lose
them. Be extra careful."

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