LIFETIME MEMBERSHIP What a devastating train-wreck for Medtecs share price (SGX: 546)! After reaching an incredible record high of $1.80 on 21 August 2020, Medtecs share price (SGX: 546) collapsed 78% to reach the current low of $0.40. What the hell has happened to this healthcare product provider?
The meteoric rise of Medtecs share price (SGX: 546) on the back of an unprecedented health crisis created one of the amazing fairy-tales in Singapore stock market. Prior to COVID-19, Medtecs share price (SGX: 546) was trading at merely $0.08 (similar to current Sembcorp Marine share price). With the onset of COVID-19, Medtecs share price (SGX: 546) turbocharged to high heavens. Those who exited at the highest price would have laughed their way to the bank. On the other hand, those who entered at the highest would have lost their pants when the stock crashed.
Buying into a hype always carry risks but I have to be honest with readers of SG Wealth Builder. When Medtecs share price (SGX: 546) was surging in 2020, I was actually contemplating to adopt a “hit-and-run” strategy for this counter. Ultimately, after much consideration, I chose to invest in AEM instead. The reason for writing this article is because a long-time Lifetime Member of SG Wealth Builder has requested an insight on the fall of Medtecs share price (SGX: 546).
Whilst it is expected that interest in Medtecs share price (SGX: 546) would cool with the improving COVID-19 situation, it is unclear to me the trigger for the swift collapse in August 2020. Back then, the pandemic was still raging globally with no vaccine being developed. Demand for Medtecs’ products, mainly personal protective equipment (PPEs) skyrocketed as hospitals and public institutions stockpiled PPEs to fight COVID-19. Against that backdrop, it certainly seemed that the sky was the limit for Medtecs share price (SGX: 546).
Nonetheless, Man proposes, God disposes. The bubble exploded unexpectedly after Medtecs share price (SGX: 546) smashed the record high on 21 August 2020. The crash caught many investors by surprise, leaving many of them struggling to find an answer. Perhaps, investors’ confidence in Medtecs share price (SGX: 546) was shaken badly following three SGX queries in 2020 (18 September, 13 July and 24 February). It is unusual for a listed company to receive SGX queries so frequently, especially within a year. Furthermore, the responses from the management didn’t provide any useful information for the retail investors.
And then, there are various other factors that could have punctured the form of Medtecs share price (SGX: 546). In this article, I will share my candid insight on the outlook for this counter in the coming months.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am not vested in Medtecs at the moment. Whether Medtecs share price (SGX: 546) will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Medtecs share price (SGX: 546) so bad its good?
To be fair to Medtecs Group, the share prices of its SGX-listed competitors, Top Glove and Riverstone, also suffered poor form since the second half of 2020. Hence, the current form of Medtecs share price (SGX: 546) is not unique. Being dual-listed in Taiwan and Singapore stock market, the performance of Medtecs shares in Taiwan is also terrible as the counter crashed 80% since hitting a record high on 4 September 2020. Thus, the performance of Medtecs share price (SGX: 546) is not Singapore-centric.
In my view, the root cause of the ailing Medtecs share price (SGX: 546) should be the [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]LIFETIME MEMBERSHIP
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