These penny stocks put investors on roller-coaster rides

KUALA LUMPUR (Nov 28): High risk, high return — the investing rule of thumb. But investors who have the stomach for high investment risk to penny stocks may also need to act quick enough to part with their shares to yield high returns.

The roller coaster rides that the penny stocks have had recently might be the proof.

A random check on Bloomberg data shows AT Systematization Bhd, Vivocom International Holdings Bhd, GETS Global Bhd, K-Star Sports Ltd, Xidelang Holdings Bhd, mTouche Technology Bhd, M3 Technologies Asia Bhd and BTM Resources are among the penny stocks which share prices have fallen as swift as they have risen.

K-Star Sports, which will soon transfer its listing status to a new company (NewCo) called Sinaran Advance Group Bhd via an internal reorganisation exercise, is the second top loser by percentage for the week. The company’s share price shaved by 38% to close at 32.5 sen on Friday, with 328.3 million shares changing hands during the week.

The stock was indeed a star performer early of the month, the week after the company signed a memorandum of understanding with Kanger International Bhd to distribute the latter’s healthcare products. Its share price jumped 111% to 92 sen in the first week of November from 43.5 sen on Oct 30. However, the rally failed to gather steam. K-Star’s share price took a nosedive. The stock did not only pared down all its gains, it dropped further losing 29.3% MTD.

According to the filings to the stock exchange, there were roughly 20.7 million of new K-Star shares listed as a result of warrant conversions since October.