that is if you had spotted this company and bought at the support level of 0.18. It registered a more than 135% returns in merely 3 weeks of holding.
A quick look at the annual reports tell me this company has been reporting a loss for the past several years and it is very dependent on tourists for its revenue. The Covid-19 virus is probably the straw that broke the camel's back, resulting in further losses than last year.
Unless and until the tourist business returns to Thailand (large part comes from China) and the air travel business recovers too, I do not know how China Smartpay can sustain its revenue moving forward.
There can be many irrational reasons why a stock price spike up like this and can be a disguise for more problems ahead. Nobody knows.........
This looks to me more like a speculative play than a long term hold so I would skip this trade set up. Others may like it purely from technical perspective , to each his own.
A quick look at the annual reports tell me this company has been reporting a loss for the past several years and it is very dependent on tourists for its revenue. The Covid-19 virus is probably the straw that broke the camel's back, resulting in further losses than last year.
Unless and until the tourist business returns to Thailand (large part comes from China) and the air travel business recovers too, I do not know how China Smartpay can sustain its revenue moving forward.
There can be many irrational reasons why a stock price spike up like this and can be a disguise for more problems ahead. Nobody knows.........
This looks to me more like a speculative play than a long term hold so I would skip this trade set up. Others may like it purely from technical perspective , to each his own.
Comment:
It has returned back to the bearish trend line so we wait