XOX slides to one-month low

by **Cals** Thu 03 Dec 2015, 23:24

XOX slides to one-month low

By Gho Chee Yuan / The Edge Financial Daily | December 3, 2015 : 9:39 AM MYT

This article first appeared in The Edge Financial Daily, on December 3, 2015.

KUALA LUMPUR: [size=16]XOX Bhd ([You must be registered and logged in to see this image.] Valuation: 0.20, Fundamental: 1.55), which has attracted investors’ interest since Oct 1 and jumped about three times to hit a peak of 68.5 sen on Nov 19, experienced a huge selldown yesterday. The company saw its shares falling nearly 23% to close at its one-month low of 23.5 sen. The decline was the second biggest one-day fall for the stock, year to date (ytd).

Last Monday, the stock recorded a 29% fall in share price to close at 33.5 sen after 176.46 million shares changed hands. Yesterday, a similar quantum (174.36 million shares) was traded at between 23 sen and 32.5 sen, making it the most actively traded counter across the bourse.This means that in less than two weeks, the mobile virtual network operator has lost over half its market capitalisation. It is now valued at RM83.66 million.

“There was a huge selling pressure on the counter. The counter is highly speculative and any rebound will just be a dead cat rebound,” a dealer told The Edge Financial Daily.

The company made two major announcements last Thursday. The first one was a joint venture between its indirect unit XOX Mobile Sdn Bhd and South Korean mobile technology firm Mobligation Co Ltd to develop and promote innovative mobile portal and browser solutions in Southeast Asia. XOX then said it had entered into a collaboration agreement with Fotokem Sdn Bhd to promote its products. The two collaborations are expected to contribute positively to its earnings and net assets in the future.

XOX had been slapped with three unusual market activity (UMA) queries in the last two months, though it had repeatedly replied that it was not aware of any corporate development or explanation that could account for the UMA in its securities.

On Nov 2, Bursa advised investors to exercise caution in the trading of XOX shares, following the recent sharp rise in the price of the stock. On the same day, XOX’s shares ended losing five sen or 16.13% to settle at 57 sen.
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