Fireblog

Looking at the graph, you can see there is a significant increase of tempe's stock value in the last 3 months. The big players have been very careful in raising the stock value with an average of IDR200 per day. A minor setback was, raising a stock's value from IDR200 to IDR2,700 in 3 months cannot be overlooked by everyone. The mailing list was full of questions on why this stock just keeps on rising.. What novices fail to recognize was that there was no fundamental explanation on why this stock just keeps on making records after records of stock value.

These novices kept on thinking that the price is too high now.. wait till it drops. Buy on weakness, was the theory used. But that never happened. Tempe just keeps on movin along.. Suddenly, there was a talk of "retail" stock investors joining forces to buy this stock and at least help maintain the price level. These Indonesian retail stock investors gambled and as shown on the graph, bought so many shares (transaction volume doubled) on March 31 which caused the stock value to rise from IDR2,800 to IDR3,250.

With bluechips and most second liner stocks moving down or sideways, a blue colored stock rising 16% raised more eyes. After the weekend, on June 4, more gamblers joined in and Tempe again rose to from IDR3275 to IDR3,925 (+20%!). The mailing lists at the end of the days was filled with questions "is it still ok to buy tempe?". The majority said "still good". So yesterday, the bullish buying continued and tempe opened at IDR4000, reached IDR4650 by noon.

The news at noon proved to be decisive. There was gossip that TMPI was about to be taken over by MTDL (metrodata). TMPI wants to stock split at IDR3000. The last and final news was the JSX administration stated that investors should be cautious because Tempe's rise is abnormal since there had been no real fundamental information to backup the bullishness.

With that, in 1 minute (yes! one minute!), TMPI became Taman Makam Penjudi Indonesia. The stock nosedived to IDR 2,950. The effect to those gamblers was like a head shot. By then, the system automatically rejects any bids (this is the proper policy when a stock rises/falls to much). So people were panic selling trying to cut loss. This ended at IDR2,950 because of the autoreject policy.. Those that bought the stock at noon and had meetings, then came back to the office surely cried.. Try explaining to your family that you lost 50% in 1 minute. Very very cruel.

All I can say is THANK GOD I RARELY PLAY WITH micro stocks...

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