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Post by oldman on Oct 19, 2013 9:53:13 GMT 7
There is a full page article in The Edge Singapore with regards to the collapse of LionGold, Blumont and Asiasons. Of interest is the section that states that Interactive Brokers Group has 70 accounts with substantial exposure ranging from US$10 mil to US$200 mil! Attachments:
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Post by oldman on Oct 19, 2013 10:05:18 GMT 7
Even though SGX has lifted the designated status, I don't think any of the brokers will lift their own trading restrictions on these stocks in any hurry.... in other words, you still need cash to buy but I think intraday shorting is allowed.
Interesting to see how the market reacts on Monday. My guess is that the stocks will go up first and then stabilise downwards.
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Post by puregold on Oct 19, 2013 10:18:35 GMT 7
I do not have The Edge Singapore. I assume the designated stocks refer to the 3 listed in Singapore.
It means that more liquidation will occur in the near future. With the curbs lifted and hence naked short allowed, the prices of the 3 will remain weak..
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Post by oldman on Oct 19, 2013 10:34:47 GMT 7
Puregold, I agree with your assessment. Saying that, I would not encourage anyone to short as the risk is very significant given that one will never know if the share price shoots up to the roof instead.
Yes, the article is about exposure to LionGold, Blumont and Asiasons. Just that the forum header has restrictions to the number of wordings and hence, I had to alter the heading somewhat and could not list the 3 stocks. Thanks for asking me to clarify. I have since altered my original post to include the names of these 3 companies. Thanks.
The Edge is a good publication and the next time it has an offer, you may want to consider taking it up. The last offer was great. 3 years subscription for Edge Singapore and the online edition of Edge Malaysia for around $418 and one gets $200 worth of Takashimaya vouchers. If you subscribed from Malaysia, the package was even more attractive.
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Post by oldman on Oct 20, 2013 15:07:26 GMT 7
If you add those numbers from the article above, it is scary. 70 accounts with a minimum exposure of US$10 mil each will mean that at least US$700 mil worth of stocks (Blumont, LionGold and Asiasons combined) may be looking for an exit. Add in the likelihood that the bank forced sales may continue, the picture becomes less promising. Then, add in all the potential intraday short sellers appearing as a result of the lifting of the designated status, the picture becomes bleaker. However, knowing how the markets work, there is likely to be an initial period of jubilation first as not many may have seen the Edge Singapore article. Here in lies the importance of being in touch with the market and hearing from as many sources as possible. Monday morning should be interesting to watch especially for those of us with no positions. Once again, I like to reiterate that shorting is highly dangerous because the downside is theoretically unlimited (as the the share may instead go upwards and there is no upper limit to which the share price can go). Hence, I am totally against shorting as a financial instrument for investors (though I am not against the concept of shorting). As always, feel free to differ. For those who saw this post through facebook, you may want to view the entire thread: pertama.freeforums.net/thread/107/stockbroking-houses-brace-collapse-stocks?page=1&scrollTo=191 |
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Post by Malaysia Mali on Oct 20, 2013 19:30:48 GMT 7
If you add those numbers from the article above, it is scary. 70 accounts with a minimum exposure of US$10 mil each will mean that at least US$700 mil worth of stocks (Blumont, LionGold and Asiasons combined) may be looking for an exit. Add in the likelihood that the bank forced sales may continue, the picture becomes less promising. Then, add in all the potential intraday short sellers appearing as a result of the lifting of the designated status, the picture becomes bleaker. However, knowing how the markets work, there is likely to be an initial period of jubilation first as not many may have seen the Edge Singapore article. Here in lies the importance of being in touch with the market and hearing from as many sources as possible. Monday morning should be interesting to watch especially for those of us with no positions. Once again, I like to reiterate that shorting is highly dangerous because the downside is theoretically unlimited (as the the share may instead go upwards and there is no upper limit to which the share price can go). Hence, I am totally against shorting as a financial instrument for investors (though I am not against the concept of shorting). As always, feel free to differ. For those who saw this post through facebook, you may want to view the entire thread: pertama.freeforums.net/thread/107/stockbroking-houses-brace-collapse-stocks?page=1&scrollTo=191 |
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Post by zuolun on Mar 13, 2014 5:54:46 GMT 7
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Post by zuolun on Feb 26, 2015 14:40:19 GMT 7
GK Goh's FY14 earnings plunges 62% to $8.2 million, declares 4 cents dividendBy Sulhi Azman 25 Feb 2015 G.K. Goh Holdings, the investment holdings company and provider of brokerage and financial services, announced earnings for the financial year ended Dec 31, 2014 (FY14) slumped 62% to $8.2 million from $21.7 million in FY13, partly due to smaller gains from investment and interest income. Revenue in FY14 rose 79% to $72 million from $40.3 million a year ago, thanks to its corporate services division which generated 81.3% of the total turnover. In the fourth quarter ended Dec 31, 2014 (4QFY14), G.K. Goh posted earnings of $4.4 million, down 51% from $9 million a year ago, while revenue surged 177% to $22.4 million from $8.1 million previously. In a filing with the stock exchange this evening, G.K. Goh said its quarterly earnings were affected by some continued weakness and restructuring costs at G. K. Goh Financial Services (S) ( Financial Dashboard), where reduced volumes in client activity led to a loss of $1.3 million. It also said that it booked foreign currency loss of $4.6 million, resulting mainly from weakness in Australian and Malaysian currencies relative to the Singapore dollar. G.K. Goh has declared a dividend of 4 cents per share in FY14, with an option to be paid cash or by issuing new shares. Going forward, G.K. Goh expects its Boardroom and Opal business to deliver steady earnings in this year, while returns from financial investments remain difficult to predict over the short term. “Following the restructuring of its business and client mix in 2014, G.K. Goh Financial Services is expected to show operational improvements this year. In aggregate, the group expects to remain profitable in 2015,” the group said in the note accompanying its financial statement. The stock closed unchanged at 92 cents this evening, with 2,500 shares changing hands, giving it a market capitalisation of $290.8 million. Stock broking – Missing the woods for the trees — 23 Jun 2014 More remisiers needed? — 8 Jun 2010 I totally agree with him that "The volume you are seeing is fictitious in a way. The big funds shuffling from left hand to right hand, generating no commission for anyone."   Good article in ST on the woes of a remisier..... Tough times for brokers as trades slow, commissions fall - 23 Jun 2013 "I don't have the exact figures, but my estimation is that more than half of the remisiers earn less than $1,000 (a month, in commissions) nowadays."
Commissions for a remisier are now as low as $10 for an online trade, after deducting the cut to the brokerage firm. This means brokers will need their clients to make 100 online trades a month to hit the $1,000 mark. But activity has dropped off so much that many struggle to hit that target, said remisiers.
Said Mr Yong: "Who wants to go into a job with no lunch break?"
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