Friday, June 01, 2007

The fiasco of Transmile

The fiasco of Transmile was a sorry sight to behold. Right from the opening bell, the stock gapped down from 8.90 to 6.25. It was limit down.

In the afternoon, the stock came down further to 5.20 before moving up to 6.00. Volume traded amounted to 17,597,800 units which was moderately high. At the end of the day, a black long-lower shadow candle appeared. This looks bullish and there is hope that the price may move up come the next trading day. Much will depend on the outcome of the investigation that is now ongoing. Better be safe, better avoid this counter until the dust settles.

It is incredible how a blue chip counter like Transmile can have irregularities in its accounts. Those who are responsible for the scandal should not be let off easily. A through investigation should be made and proper action without fear or favor should be taken. Confidence in the stock market must be restored before investors moved out with their money.

A lawyer says that Transmile is now open to legal suits. If you are interested to know more, here is the link.

There is also an article at Blisswind.