Focus announced a very poor result for its latest quarter ending 30/9/2019. Earning per share is zero and net assets is only 2 sens a share. But amongst the six companies that Fintec is holding, Focus is the top performer in term of share price.
Focus share price was only 9.5 sens on 2/5/2019. This morning it reached a high of 43.5 sens before being sold down to close at 38 sens. Volume was very high at 23 million.
Focus has been consolidating since early August. It appeared to me that it has completed its a-b-c wave (ii) in November and since then Focus has been forming the wave (iii) of its major wave 3.
But the candlestick formed today is a bearish long-legged doji with a very tall shadow at the top. A correction following the formation of a doji is common but if Focus can continue to move higher despite of a doji candlestick, then it is very very bullish.
It is important to note that Fintec has about 508 million shares of Focus. If these 508 million is divided by the total number of Fintec shares of 680 million, we have 0.75 Focus share for each Fintec share. Fintec at 5.5 sens a share looked cheap.
Fintec's latest quarterly earning of 13.64 sens a share with net assets at 38 sens a share was mainly due to the appreciation of Focus stock price. Similarly by December 31 if Focus share price dropped below its September 30 price of 36 sens, it will have a negative impact to Fintec's next quarter earning. But the wave (iii) of Focus is likely to continue into the first quarter of 2020.
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