China Minzhong hit by shortseller. Bear Empire affected and lost 11k

[anfielder]

The other Govt arm is already vested in this. Lets see how they account or fix this, very soon.

Said Govt arm divested its entire stake earlier this year.

 

[solidus]

http://blogs.wsj.com/moneybeat/2013/08/27/short-seller-not-alone-in-questioning-china-minzhong-food/

"CIMB says it shares some of Glaucus's concerns on China Minzhong, and ends coverage of the stock."

 

[carey]

http://blogs.wsj.com/moneybeat/2013/08/27/short-seller-not-alone-in-questioning-china-minzhong-food/

"CIMB says it shares some of Glaucus's concerns on China Minzhong, and ends coverage of the stock."

In Jun, it had a report with an Outperform, citing the strong possibility of dividends, which could ease corporate governance concerns

 

[Sinkie]

All the 3 solutions i noticed something common which is loss, interest, off market price.

Due to shorting nude. That's why advice to shortists is many shorts wins, cannot cover 1 disastrous short.

For this even when trading lifted, confidence from investors already finished.

yeah, even if u manage to nude short at $1.00, once its suspended, u are screwed..

unless u managed to 'borrow' the shares in the first place, then choose [2- buy shares from others at off market price and return] option

 

[Sinkie]

 

[Carnage]

The other Govt arm is already vested in this. Lets see how they account or fix this, very soon.

Talking abt GIC?

Already divested a few months back in entirety.

 

[Dividends Warrior]

http://blogs.wsj.com/moneybeat/2013/08/27/short-seller-not-alone-in-questioning-china-minzhong-food/

"CIMB says it shares some of Glaucus's concerns on China Minzhong, and ends coverage of the stock."

Wa.....the analyst u-turn very fast!

 

[chensing]

Talking abt GIC?

Already divested a few months back in entirety.

Heng ah ..Carnage

For the BUYERS for now

They need to pay 100% of what they buy and wait for the price to determine how much they lost. If it is going to delist. Then there will be a price to them, may be at Par Value.

For the SELLERS for now,

They are required to pay interest in the CFD Account till the Trade resume if they short thru CFD. For Naked short, $1000 fined will need to pay to CDP. The gain only wait till the trade resume, maybe years.

 

[Sinkie]

Heng ah ..Carnage

For the BUYERS for now

They need to pay 100% of what they buy and wait for the price to determine how much they lost. If it is going to delist. Then there will be a price to them, may be at Par Value.

For the SELLERS for now,

They are required to pay interest in the CFD Account till the Trade resume if they short thru CFD. For Naked short, $1000 fined will need to pay to CDP. The gain only wait till the trade resume, maybe years.

provided it is not your 2nd/3rd time that u fail to cover back

 

[AceyourMaths]

Ai zai people, maybe minzhong decide to resume trading and shoot it back up to $1.

 

[mrwonderful]

Aiyah, why talk so much cock, in the end

if you own any of this stock, you are in deep sh!t, i.e. your stock becomes $0.000

if you have any outstanding short positions in this stock, you are in deep sh!t, i.e. got to pay interest and penalties you die.

either way, you are in deep sh!t if you have any long or short positions in China Minzhong.

On another note, SGX as the regulator should be held accountable for listing this dubious stock, another scandal makes SGX lose face and also causes big pain to naive sg investors. Some might even resort to crime or suicide if they lose all their life savings. (They're dumb to buy s-chip, yes, but they should still be protected same as DBS Hi-Notes 5 incident)

 

[nauhchop]

Ai zai people, maybe minzhong decide to resume trading and shoot it back up to $1.

These short sellers research group always do a lot of homework before they launch a report or else any company can sue them back. Certain parts may exaggerate but not without truth in most parts. Thus it is the onus of the company involved to defend.

Muddy waters also belongs to such consultancy group, and u see whether olam dare to sue muddy waters?

Imagine if go to court, there is a lot of explanation to do in front of the judge as going there is not opening a can of worms but cans of it. And the CEO does have a lot of explanation to do on why his interest stake in another company is not declared.

 

[nauhchop]

On another note, SGX as the regulator should be held accountable for listing this dubious stock, another scandal makes SGX lose face and also causes big pain to naive sg investors. Some might even resort to crime or suicide if they lose all their life savings. (They're dumb to buy s-chip, yes, but they should still be protected same as DBS Hi-Notes 5 incident)

Actually everyone should be educated that SGX has no moral obligation to help investors as they are a money greedy company just keen on more companies going for IPO. We just need another financial crisis slam to see how many more s chips die.

But as we type, there are people who are greedy when they see the gains of s chips and succumb to greed. Nothing we can do.

Actually SGX should implement some sort of indicator to halt all trading when there is a 20% drop. And not 50%. Imagine if i buy 50cts, i have to wait 100% then can see $1, while from $1 drop to 50cts is 50% drop

 

[Sinkie]

Actually everyone should be educated that SGX has no moral obligation to help investors as they are a money greedy company just keen on more companies going for IPO. We just need another financial crisis slam to see how many more s chips die.

But as we type, there are people who are greedy when they see the gains of s chips and succumb to greed. Nothing we can do.

Actually SGX should implement some sort of indicator to halt all trading when there is a 20% drop. And not 50%. Imagine if i buy 50cts, i have to wait 100% then can see $1, while from $1 drop to 50cts is 50% drop

actually if u all notice, s-chip ipo craze was before 2008 time, after 2008, there is not many s-chip ipo le.

 

[windwaver]

Wa.....the analyst u-turn very fast!

As usual, talk about the most OBVIOUS AFTER it has happened.

I can also do that and get a salary out of it

 

[OnlyHuman]

Question :

Why China's GDP every year 7%+ yet the indices all testing lower low.

and

Why Japan's GDP barely positive yet Nikkei Hitting Higher high?


Answer ; Mere Speculation.

 

[AceyourMaths]

Ai zai people, got worm only in chinese word and logo.

 

[mrwonderful]

Question :

Why China's GDP every year 7%+ yet the indices all testing lower low.

and

Why Japan's GDP barely positive yet Nikkei Hitting Higher high?


Answer ; Mere Speculation.

Stock markets are forward looking; usually is 6 months but can be up to a year or two.

 

[Sinkie]

Question :

Why China's GDP every year 7%+ yet the indices all testing lower low.

and

Why Japan's GDP barely positive yet Nikkei Hitting Higher high?


Answer ; Mere Speculation.

Stock markets are forward looking; usually is 6 months but can be up to a year or two.

yeah, both of you are right,

mere speculation is also as good as speculating the economy will be good in 6 months time.

we form an opinion of what happened in 6 mths time, so we buy now, and sell later for a profit. the more people form a positive and bullish opinion, the more buyers they become, and then the greedy punter will push the market evern higher.

thats how market just go higher and higher to become a bubble

 

[OnlyHuman]

yeah, both of you are right,

mere speculation is also as good as speculating the economy will be good in 6 months time.

we form an opinion of what happened in 6 mths time, so we buy now, and sell later for a profit. the more people form a positive and bullish opinion, the more buyers they become, and then the greedy punter will push the market evern higher.

thats how market just go higher and higher to become a bubble

Yeah... i seen some japanese companies making losses yet their stock price up 6 fold due to abenomics..

this is what i call mere speculation.