OCBC and their acqusitions on WingHang Bank

 Coupled with bad market sentiment and impending take over, OCBC has been the worst performer of our STI.The question is where does it stops bleeding? Putting away the technical analysis/chart, there will be 2 scenarios for OCBC...

First, the take over talks halts and deal was called off. OCBC share price runs up..straight forward. Nothing to see/buy.

Second : Company announce rights or any forms of money grabbing facilities to pay for their acquisitions. Reactions from the public will be very adverse and more sell down could happen if such announcement was made. Investors will sell for several reasons : rights subscription price is hefty, hence no money to subscribe and doesn't want to be diluted. 2) they dont see the acquisition as something meaningful and accreditve to what OCBC already has. 3) Plain panic. 4) Plain panic cum market sentiments.

If the form of rights subscription does happen for the acquisition, which I believe it will, I will use wyckoff/vsa to time my entries in the market which I believe it shouldn't be very far off. If happened, I expect share prices of  OCBC to do a "United Engineer"


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