After the reverse stock split action discussed in our previous article 《威利國際 (00273.HK) 的「吸水大法」》, Willie International Holdings Limited (00273.HK) , again, announced the proposal of rights share issue at a great discount, which caused the stock price to plunge 16.76% today.
The price trends of most of the above publicly traded stocks in the “Chung Nam Network” have an obvious indication of “Chung Nam Style” : Reverse stock split + Share placement or Rights share issue = Forever Dilution!
The charts below showed how stocks with “Chung Nam Style” look (as great as “Gang Nam Style”!). A big step-up of issued shares most probably represents a share placement or rights share issue. A great step-down of issued shares with a corresponding step-up of stock price very likely means a reverse stock split.
Although some people may regard such kind of behavior as “deceiving”, there’s nothing illegal as long as all parties played by rules. Investors are responsible for what they are investing unless they are being misled. Nevertheless, please pay special attention and be cautious if any of you have invested or are planning to invest in the above stocks.
Lastly, take a look at how HAO TIAN RES GP 昊天能源集團 (00474.HK), a member of “Chung Nam Network”, made use of the company’s money from here:
– Mr. Alpha