Blumont Wiped Off By 95% Within 3 days!
4 weeks ago, my father in-law asked me about one stock that his trader friend tipped him to buy: Blumont at $1.50 per share. His friend claimed that the stock will climb to $3 based on “insider news”. A day later it raised to $1.85 and some was convinced that a “trend momentum” was building with “sustainable volume” while showing some quick profits made from Blumont on FB.
I did a quick study and in less than 10 mins, I warned my father-in law not to touch this company. Reason is simple, Blumont market cap balloon from $500m to $6.5B in less than 9 months! I even joked with my investment team that they must be holding “Uranium or Rhodium” mineral mines. There is no fundamental at all. In addition, you find little information on the management. Then my father in law asked me again when it soared to $2.40 last week. I warned sternly, “Don’t touch because it will collapse soon” and he stayed out. But his friends were still in.
Then the inevitable happened. Blumont’s share price corrected more than 50% last Thursday, from $2.44 to $0.88 within 1.5hr of market opening and was suspended trading. I shared during Value Growth Workshop last Saturday that Blumont price should continue to collapse once it resume trading on Monday. And the latest price during this time of writing? $0.295. Another 67% wipe off! And if you think you can practice your 5%-8% “cut loss” trading strategy, you can forget about it.
*Revised at 1900hr. Blumont’s closing price is $0.13. A total wipe off of 95% from last Thursday peak of $2.44. This will go down in SGX history as the most brutal and intense “bloodshed”*
A lot of people get burnt real bad. And I hope less families lives will be affected by this saga.
P/S: If you do not invest based on fundamental with Value Investing knowledge, you are basically gambling and you have to pay a price sooner or later. And this make me more determine to impart proper Value Investing knowledge, skill and experience to more people around the world! www.millionaireinvestor.com
PP/S: I hope none of my MIP graduates dabble in Blumont and her related companies.Earning Disclaimer
“Please note that the material here is provided to you for general information and illustrative purposes only, or as descriptive case studies on how our value-investing principles may be applied. It is not intended to be and should not be construed as any form of general or specific financial advice. For the avoidance of doubt, we do not recommend or provide opinions on how or what you should or should not be investing in, and you should always do your own research and independent assessment before making any investment decisions, taking into account your own specific circumstances. If you require any financial advice on investments or any other financial matters, please consult the relevant professional financial advisers.”