KNM Group’s managing director and major shareholder Lee Swee Eng, who currently owns 24% in KNM Group, has proposed to acquire the businesses of KNM, valued at 90 sen per KNM share. This is 15 sen higher than last closing price of 75 sen
KNM had on 5/2/2010 gapped up tp cross over the immediate high of RM0.82 (5/1/2010) to reach the highest high of RM0.85 since 26/10/2009 before settled at RM0.815.
Next Potential Upside Target : An upside violation of RM0.82 level, again would likely see KNM to trade upward with next upside target at RM0.88.
Entry Level : Risk taking traders may establish buying position at RM0.79.
Stop Loss Level : Once a buying position is being established, a stop loss level at RM0.76 level must be placed for risk capital protection purpose followed by trailing stop loss strategy.
source : Mercury Securities
