Random Walks and Oil and Gas Adventures

For the last few months, the market has been rumbling with rumours about corporate takeovers and asset injections. But do take notice, they are mostly penny stock counters.

Some parties have seen it worthwhile to take over these loss-making entities and in the process push their prices sky-high. Remember Tri-cubes and Karambunai? The latest to join the adventure is Naim Indah Corp (Nicorp)and Envair.

Nicorp has been invited by a party to tender for a takeover of some oil and gas facilities while Envair has a new majority shareholder in a politically connected carpet man.

The other phenomenon happening lately is called, in stock market parlance, the 'random walk'. Here, all stocks will naturally get out of hibernation and have their day of fame on the bourse's 'catwalk'. They prices will start to move up with heavy volume and then spurt upwards like a fountain only to fell back bringing losses to the uninitiated. Be careful. One such counter is Metronic Global. Is it doing a random walk or is it also embarking on an oil and gas adventure as it is an UMNO vehicle?

Now,both types of developments will occur in timely fashion,just before an impending general elections and since the election is looming closer every day, such counters are made into 'race-track horses' to make hay for the politically connected at the behest of greedy retail buyers and day traders. Once, they have amassed sufficient political funds to donate to their Godfather parties, the stocks will wither in price, lose momentum and be back to square one in no time. Look at Harvest Court,no one is interested really in it these days, though it has escalated so high because of some personalities. Money have been made, money have been lost!

For the weak hearted and weak-kneed, do stay away from these games.