2016 IPO Summary

2016 had not been a smooth year. In the year of monkey, the monkey went wild and jumped up and down. For 2016, the index closed 2.7% lower, from 1686.62 to 1641.73. Most of the stocks had not done well. But i do notice that the Initial Public Offering (IPO) stocks are worth subscribed. Subscribing to IPO can be one of our strategy in the future. You can refer to the table below:

IPO summary in 2016 [1]

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There are 12 IPOs in 2016.A few summaries can be made. On the listing day...
10 out of 12 IPOs gapped up 
11 out of 12 IPOs closed higher than issue price
16% is the AVERAGE PROFIT earned at closing price
19% is the AVERAGE PROFIT earned at opening price

Even if we sell at lowest price, we can still earn a handsome 10% profit. For those who did not go through the IPO summary or prospects, you can target your profit taking price. But if we are confident of the business model and the future prospects, why not hold it? Just take a look at DANCO, from its issued price till the last trading day of 2016 (30 December 2016), it had increased incredibaly to 98.6%! Let's look at the chart. This is definitely NOT a buy call, this are just case studies.

DANCO Daily Chart

DANCO had been uptrend since the first listing day. The resistance is 1.50 while the support is 1.35. After an uptrend, it rested sideways for a few months before ballooning up to challenge its new high.

CHINHIN Daily Chart

CHINHIN also formed an uptrend since the listing day. Whenever it hits the uptrend channel, it rebounded. Now its next resistance will be at 0.88. If you can see properly, the chart is now forming a triangle breakout, but will it form a golden triangle (go up)? Or death triangle (go down)?

BISON Daily Chart

BISON had been in uptrend and now also dropped down. Can BISON overcome its previous high of 1.97? Did we see more and more emergence of mynews.com convenience store in our surroundings?

SALUTE Daily Chart

SALUTE had been in uptrend but it broke the uptrend channel in the mid of November. With its support of 1.23 and the next immediate resistance of 1.38, SALUTE seems to be healthy with the selling of AirBar and we can monitor it through NEON share price too. I shared my detailed view on SALUTE. You can click HERE, if you want to read more about SALUTE.

RHONEMA Daily Chart

So far so good for RHONEMA. I cant really draw a pattern yet, but maybe there will be a T+4pm on Tuesday? The chart seems forming a stairs up~

FPGROUP Daily Chart

FPGROUP also too early to make any saying. I remember while i read through his prospects, FPGROUP plan to expand its business to overseas. That is also one of the main reason they went for listing. I think they will be beneficial to the strengthening USD. So far so good~

I had talked about all the high flyers, now lets talk about the rest of the IPO counters:

PECCA Daily Chart

PECCA formed an uptrend channel but was hit back to his original state. With its current support of 1.56, can PECCA sustain and breakout from its current downtrend?

BCMALL Daily Chart

BCMALL had been in downtrend. In fact on the first day, there was a big bearish engulfing with a huge volume. Definitely this was one of the unluckiest counter for those who chased in in the first day of listing. Can the DIY washing machine service maintain?

LKL Daily Chart

LKL also going downtrend. Once it hit the support, it will dropped down. Now its support is at 0.215, while the resistance is 0.26.Notice that LKL is also going to form a triangle, but we are still not sure is it a golden triangle of vision triangle. LKL's business model is supplying the medical beds to the hospitals.

PTRANS Daily Chart

PTRANS almost hit back to its issue price of 0.15. Therefore, the strong support will be around 0.150 to 0.155. The chart is getting weak and might be sideway around 0.15 and 0.16. 

RANHILL Daily Chart

RANHILL adjusted its issue price from 1.7 to 1.2. However, out of 12 IPOs, only RANHILL closed lower than its issue price. Currently supported at 0.85 and seems to form a descending triangle. 

HSSEB Daily Chart

HSSEB had formed a downtrend channel and currently supported at 0.4. RANHILL, HSSEB and BCMALL had their closing price in 2016 lower than the issue price.

IPOs can be a strategy that we can utilize in 2017. If the counter's future prospect is very good, it is worthwhile to subscribe and hold. If purely for trading purpose, you can take profit after it hit the 10% point. Any how, it is still dependant on each individual's strategy. Coming up in 2017, these IPOs.

2017 IPOs

I wanna wish everybody a very Happy New Year 2017. I also wish everybody to have a very satisfying investment career in 2017. 

The Market is a very mean and nasty place. It will beat you to your knees and keep you there permanently if you let it. You, me or nobody is going to hit as hard as life. But it ain't about how hard you hit, it is about how hard you can get hit and keep moving forward, how much can you take and keep moving forward. When we fail, we need to identify why we fail, route out a possible strategy to avoid the mistakes. Thats where we learn and moving forward in our investment career~

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Let's Ride the Wind and Gainvest

Gainvestor 10sai

2 January 2017

9.10am

Sources:
[1]: http://www.bursamalaysia.com/market/listed-companies/initial-public-offerings/ipo-summary