Wow, let's look at what happen to IRCB these 2 days. It is just the top share listed in KLSE these few days! Rubber glove shares are in the highest play these few weeks!
On Monday, it managed to bull more than 40% in a single day, with the highest volume in the day. On Tuesday and Wednesday, it goes up 10% and 6% respectively. On this morning, it went up to the top with 20%, and finally it was queried by Bursa before lunch time. However, IRCB still managed to close with 3% and top volume share of the day. What a strong rally!
According to one of my mentors, whenever there is people fishing, there should be fishes to catch. This is very true. I should have look into this earlier and trade with my analysis and instinct, instead of just follow my dead rules.
Apart from the reasons in the post earlier, I noticed there were some reasons which is too risky to enter after Monday. IRCB is trading at price-to-earning ratio of 86 times for now, while IRCB's directors were crazily dropping their massive shares to the market on Monday. Perhaps they already knew their company share price has overbought which far away from intrinsic value, and they made some profits of it? It makes sense to me, but the market just gone crazy about this rubber glove share, it has risen for almost 40% again after Monday without any correction. It's totally out of my expectation.
So after Bursa's query and the high PER news were out, I believe part of tomorrow's KLCI attention will still dominate to IRCB. It will either continue to bull like nobody, or fall back to it's intrinsic value. How I wish KLCI has straddle so I can call and put options at the same time to make some profits of it. Well, let's see whether IRCB manages to push on upper side on tomorrow.
Happy trading.
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