EZION stock: will it be EZ for price to continue ION-ising?

Ezion stock
Dear readers, Ezion stock resumed trading on the SGX on 17 Apr 2018 with much fanfare. As soon as the opening bells rang, Ezion stock rallied to an intra-day high of $0.255 before closing the first trading day after eight months of suspension at $0.194, a 1.5% below its last trading price of $0.197 before trading suspension.
Thereafter, Ezion stock continued to head south and south. As of 27 Apr 2018, Ezion stock closed at $0.12, a whopping 40% southing of Ezion stock’s last trading price before the trading suspension. I believe investors continue to scrutinize the high debts levels of Ezion. Analysts’ reports are also widely available, giving target prices which are on opposite ends of the spectrum: as high as 29 cents per share and as low as 10 cents per share.

It is interesting to note that Temasek-linked Pavilion Capital Fund has agreed to invest in Ezion via 96.2m shares at $0.208 per share; Pavilion also received 137.6m options that may be converted into Ezion shares at $0.218 per shares. What it means that despite the very bearish outlook for Ezion as evident in the recent trading sessions and the fact that the stock price could continue to go south, an investor investing in Ezion stock now at $0.12 per share will have a much better entry price than Pavilion’s.

However, the reality is that for Ezion, whose stock price has now become like an atom compared to a molecule or larger compounds in its hey days; if there is no further catalyst apart from Pavilion’s stake in Ezion, it could be EZ (easy) for Ezion’s stock price to continue to ION-ise (i.e. from atom to ions: there are two groups of ions, + and -, with the recent performance of shares, the latter group of ions is possible if the down trend still continue). I believe now investors already vested in Ezion or potential investors in Ezion are eager to know the outcome of the strategic partnerships with overseas partners which Ezion has cited.

Last but not least, yes I studied chemistry, and I still recall an atom has electrons, protons and neutrons. And yes, I am inspired by the name of Ezion stock as well as the recent developments of Ezion’s share price. But it could well also be a case that Ezion stock, catalyzed by some positive announcements become positive ions and then over the years become multi-baggers: molecules and compounds. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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