OKH Global hit the headlines recently when shares of its Executive Chairman/CEO were force-sold by the banks to which they were pledged to. The share price plunged 79.7% on 21st March, and this was after a 33% fall the previous Wednesday. Within a week, its share price fell from 53 cents to 7 cents.
Such events often provide opportunities to enter as the market tends to over-react. The common understanding is that the fundamentals of the company remain unaffected by the sale of shares. Assuming the market is rational (and it often is), the share price prior to the crash should remain as a fair price for the company. Indeed, the share price has somewhat recovered to around 10 cents as of the time of writing (23rd March). However, investors (or traders) who are planning to hold out for more returns over a longer holding period should ......