Sunday, July 9, 2017


M1 stockM1 stock has been trending higher earlier following reports that overseas buyers are looking to acquire the stock. This led to M1 stock trending around the $2.25 price mark. However M1 stock price has been declining recently, even reaching an intra-day low of $2.05 on 7 Jul 2017 before closing the trading day slightly higher at $2.10. From $2.25 to $2.10, that was over 6% in price drop for M1 stock since news of potential acquisition were made. The price pattern on 7 Jul 2017 while forming a doji had already breached below the 200- day moving average on the intra-day low of $2.05 and it would have signaled a downtrend for M1 stock if not for the fact that the price went up slightly later on the same trading day to $2.10. 

So what has happened to M1 stock price? Well, it has to definitely, in my opinion, to do with the fact that MyRepublic announced on 6 Jul 2017 that it was not interested in buying M1. Rather, MyRepublic will seek to become a mobile virtual network operator in Singapore. Here we had it in the announcement: one less likely buyer for M1 and more competition ahead for M1.

Analysts had earlier stated their positions that if the acquisition for M1 does not go through, M1 stock will retrace to the $1.80 to $1.90 price range. The consensus target price for M1 is $1.95 on SGX’s website. 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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