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Post by oldman on Apr 13, 2015 13:48:03 GMT 7
With the Catalist index shooting upwards, all logic will fall off the sky and greed will take over our markets. Let's all enjoy the ride upwards!  Great. It really feels like it is back to the old days when penny stocks can jump 100% a day with no reason or rhythm. 750 soon?  |
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Post by oldman on Apr 20, 2015 16:44:05 GMT 7
It has been a really bad day for Catalist stocks. Hopefully, these will recover in the days ahead.....  |
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Post by zuolun on Jun 26, 2015 13:32:56 GMT 7
oldman, The SGX-share consolidation solution is a catalyst for the Catalist Index to retest the last low @ 656.68 points and collapse much further down. SGX-listed companies with their six month average share price still below the minimum trading price (MTP) of 20 cents by 1 Mar 2016 will be placed on the SGX watchlist for three years. Those who opt for a ratio of 100 to 1 share consolidation may suffer a high risk of losing more value at a faster rate as compared to their current share prices, i.e. for a S$0.30 stock (after 100 to 1 share consolidation) to go down 20% to S$0.24 is much easier than a micro penny stock @ S$0.003 to go down 20% (pre-share consolidation of 100 to 1) because it only has 3 bid prices @ S$0.003, S$0.002 and S$0.001. 
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Post by roberto on Jun 26, 2015 14:17:15 GMT 7
Because of the new ruling, many prices have gotten bashed down undeservedly post consolidation. This also opens opportunities for some value picking.
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Post by zuolun on Jun 26, 2015 14:39:32 GMT 7
Because of the new ruling, many prices have gotten bashed down undeservedly post consolidation. This also opens opportunities for some value picking. Aiyoh...the new ruling is structured to disadvantage / kill the small retail investors. |
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Post by oldman on Jun 26, 2015 15:40:21 GMT 7
Only mainboard listed stocks are governed by the MTP of 20cts. Catalist stocks are exempted. When I was in the SGX securities committee, I suggested that all watchlist stocks (which have to be mainboard listed) should be given the opportunity to switch over to catalist stocks. The brokers there disagreed. The brokers also wanted to reduce the lot price from 0.5cts to 0.1ct and I was the only one who disagreed. But I am one voice and sure enough, I was not invited back after my 2 year term. I think it is unfair to solely blame the management of SGX for what has happened to our penny stock market, as the brokers are as responsible. oldman, The SGX-share consolidation solution is a catalyst for the Catalist Index to retest the last low @ 656.68 points and collapse much further down. SGX-listed companies with their six month average share price still below the minimum trading price (MTP) of 20 cents by 1 Mar 2016 will be placed on the SGX watchlist for three years. Those who opt for a ratio of 100 to 1 share consolidation may suffer a high risk of losing more value at a faster rate as compared to their current share prices, i.e. for a S$0.30 stock (after 100 to 1 share consolidation) to go down 20% to S$0.24 is much easier than a micro penny stock @ S$0.003 to go down 20% (pre-share consolidation of 100 to 1) because it only has 3 bid prices @ S$0.003, S$0.002 and S$0.001. |
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Post by zuolun on Jun 26, 2015 16:08:25 GMT 7
oldman, Thanks for the info. I've totally missed this important point that "Only mainboard listed stocks are governed by the MTP of 20cts." From your feedback and my personal experience on penny and micro penny stocks, now I know why the brokers are in favour of lot price from 0.5cts to 0.1ct. These brokers are myopic to have agreed on the lot price change. What we see now are in-house traders playing with other local brokering firms in the Singapore stock market. Without active mass participation from the retail investors, the only competitive edge these local brokers have will soon be eroded and the foreign brokering firms who charge $10 to S$12 per trade will continue to enjoy eating the local brokers' lunch. Yes, I totally agreed that "the brokers are as responsible for what has happened to our penny stock market." My personal experience on penny and micro penny stocks — to get one-lot or 100 shares done is damn frustrating... Who're these people behind the screen selling one-lot or 100 shares worth < $100 to retail investors and force them to pay the min. brokerage fees? Only mainboard listed stocks are governed by the MTP of 20cts. Catalist stocks are exempted. When I was in the SGX securities committee, I suggested that all watchlist stocks (which have to be mainboard listed) should be given the opportunity to switch over to catalist stocks. The brokers there disagreed. The brokers also wanted to reduce the lot price from 0.5cts to 0.1ct and I was the only one who disagreed. But I am one voice and sure enough, I was not invited back after my 2 year term. I think it is unfair to blame the management of SGX as the brokers are as responsible for what has happened to our penny stock market. oldman, The SGX-share consolidation solution is a catalyst for the Catalist Index to retest the last low @ 656.68 points and collapse much further down. SGX-listed companies with their six month average share price still below the minimum trading price (MTP) of 20 cents by 1 Mar 2016 will be placed on the SGX watchlist for three years. Those who opt for a ratio of 100 to 1 share consolidation may suffer a high risk of losing more value at a faster rate as compared to their current share prices, i.e. for a S$0.30 stock (after 100 to 1 share consolidation) to go down 20% to S$0.24 is much easier than a micro penny stock @ S$0.003 to go down 20% (pre-share consolidation of 100 to 1) because it only has 3 bid prices @ S$0.003, S$0.002 and S$0.001.
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Post by roberto on Jun 28, 2015 10:18:12 GMT 7
While the initiatives have disadvantaged small retail investors, we can't fully blame a group of people as the interests are far from aligned. Who's to blame for misalignment is another matter. At least that's how I view things currently. For e.g. the SGX management wants to change the perception of our micropenny market (majority of our top volume counters are micropennies). Brokers want to make more from commissions. Traders and investors want to make money with their own methods. As for how things turned out, traders and investors don't really have much say. Reading about oldman's experience with the securities committee confirms it.
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Post by zuolun on Jul 2, 2015 14:18:27 GMT 7
oldman, The SGX-share consolidation solution is a catalyst for the Catalist Index to retest the last low @ 656.68 points and collapse much further down. SGX-listed companies with their six month average share price still below the minimum trading price (MTP) of 20 cents by 1 Mar 2016 will be placed on the SGX watchlist for three years. Those who opt for a ratio of 100 to 1 share consolidation may suffer a high risk of losing more value at a faster rate as compared to their current share prices, i.e. for a S$0.30 stock (after 100 to 1 share consolidation) to go down 20% to S$0.24 is much easier than a micro penny stock @ S$0.003 to go down 20% (pre-share consolidation of 100 to 1) because it only has 3 bid prices @ S$0.003, S$0.002 and S$0.001. Only mainboard listed stocks are governed by the MTP of 20cts. Catalist stocks are exempted. When I was in the SGX securities committee, I suggested that all watchlist stocks (which have to be mainboard listed) should be given the opportunity to switch over to catalist stocks. The brokers there disagreed. The brokers also wanted to reduce the lot price from 0.5cts to 0.1ct and I was the only one who disagreed. But I am one voice and sure enough, I was not invited back after my 2 year term. I think it is unfair to blame the management of SGX as the brokers are as responsible for what has happened to our penny stock market. oldman, Thanks for the info. I've totally missed this important point that "Only mainboard listed stocks are governed by the MTP of 20cts." From your feedback and my personal experience on penny and micro penny stocks, now I know why the brokers are in favour of lot price from 0.5cts to 0.1ct. These brokers are myopic to have agreed on the lot price change. What we see now are in-house traders playing with other local brokering firms in the Singapore stock market. Without active mass participation from the retail investors, the only competitive edge these local brokers have will soon be eroded and the foreign brokering firms who charge $10 to S$12 per trade will continue to enjoy eating the local brokers' lunch. Yes, I totally agreed that "the brokers are as responsible for what has happened to our penny stock market." My personal experience on penny and micro penny stocks — to get one-lot or 100 shares done is damn frustrating... Who're these people behind the screen selling one-lot or 100 shares worth < $100 to retail investors and force them to pay the min. brokerage fees? , Catalist-listed stock, United Food is an example illustrating how its existing minority shareholders have suffered losing more value in the shortest time frame due to the SGX-share consolidation solution. This is the bad result of a small group of people (brokers) who "kill the goose that lays the golden egg". Strong stocks remain strong, weak stocks remain weak; unless the fundamentals of United Food improves, else its share price will always remain weak and it may need to do a share consolidation, again.  Profit Warning ~ 30 Jun 2015 Completion of 10-into-1 share consolidation ~ 16 Jun 2015 United Food ~ Fall off the cliff |
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Post by oldman on Jul 2, 2015 14:26:12 GMT 7
Agreed, Zuolun. Consolidation is even worse for stocks that are already illiquid. I will not be surprised that in the years after the consolidation, the management will then take the company private at a significant discount to asset value and quote the lower trading volume as one of the main reasons......
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Post by zuolun on Jul 3, 2015 8:39:02 GMT 7
While the initiatives have disadvantaged small retail investors, we can't fully blame a group of people as the interests are far from aligned. Who's to blame for misalignment is another matter. At least that's how I view things currently. For e.g. the SGX management wants to change the perception of our micropenny market (majority of our top volume counters are micropennies). Brokers want to make more from commissions. Traders and investors want to make money with their own methods. As for how things turned out, traders and investors don't really have much say. Reading about oldman's experience with the securities committee confirms it. Agreed, Zuolun. Consolidation is even worse for stocks that are already illiquid. I will not be surprised that in the years after the consolidation, the management will then take the company private at a significant discount to asset value and quote the lower trading volume as one of the main reasons...... , Share consolidation is a brilliant way to solve SGX's long term problem — Get rid of underperformed stocks, at the expense of small retail investors Based on United Food's chart pattern and its major SSHs stakes in the company; its share price may collapse much further down due to illiquidity.United Food: Total Market Cap. at S$20.3m ~ 2nd July 2015  United Food: Directors' and Substantial Shareholders' interests as at 6 Apr 2015  United Food ~ Fall off the cliffUnited Food closed @ S$0.184 (-0.003, -1.6%) with extremely thin volume done at 85,500 shares on 2 July 2015.  |
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Post by zuolun on Jul 14, 2015 6:00:49 GMT 7
oldman, Based on your latest Catalist Index chart dated 17 Feb 2015, it broke down and hit a new low of 714.48 points. In technical analysis, a stock that has made a new low is a decisive signal to short, not long. It means the Catalist Index is likely to go further down to a target projection at 680 points. closed at 631.96 (+0.12, +0.02%) on 13 July 2015.  |
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Post by hyom on Aug 8, 2015 5:10:49 GMT 7
Hi Zuolun, You may already know this. A retail investor can use Standard Chartered online trading brokerage to avoid paying the minimum brokerage fees. SCB does not charge the minimum fee. This is what I do myself. However, there are disadvantages. The shares are held by SCB in a nominee account. The investor is unable to exercise his vote as a shareholder. From personal experience, the SCB online platform is not reliable enough for my comfort and there were occasions when I was not able to log in. This is not an issue if the investor wants to buy because he can buy through other brokers. However, if he wants to sell, he can only do so through SCB because his shares are not held in the CDP account. For many small-time retail investors, it is tolerable. For active and larger-scale investors, they would rather go for more reliable platforms and retain their right to vote. May I ask which are the foreign brokers who charge $10 to $12 per trade? oldman, Thanks for the info. I've totally missed this important point that "Only mainboard listed stocks are governed by the MTP of 20cts." From your feedback and my personal experience on penny and micro penny stocks, now I know why the brokers are in favour of lot price from 0.5cts to 0.1ct. These brokers are myopic to have agreed on the lot price change. What we see now are in-house traders playing with other local brokering firms in the Singapore stock market. Without active mass participation from the retail investors, the only competitive edge these local brokers have will soon be eroded and the foreign brokering firms who charge $10 to S$12 per trade will continue to enjoy eating the local brokers' lunch. Yes, I totally agreed that "the brokers are as responsible for what has happened to our penny stock market." My personal experience on penny and micro penny stocks — to get one-lot or 100 shares done is damn frustrating... Who're these people behind the screen selling one-lot or 100 shares worth < $100 to retail investors and force them to pay the min. brokerage fees? Only mainboard listed stocks are governed by the MTP of 20cts. Catalist stocks are exempted. When I was in the SGX securities committee, I suggested that all watchlist stocks (which have to be mainboard listed) should be given the opportunity to switch over to catalist stocks. The brokers there disagreed. The brokers also wanted to reduce the lot price from 0.5cts to 0.1ct and I was the only one who disagreed. But I am one voice and sure enough, I was not invited back after my 2 year term. I think it is unfair to blame the management of SGX as the brokers are as responsible for what has happened to our penny stock market. |
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Post by zuolun on Aug 8, 2015 5:37:26 GMT 7
Hi Zuolun, You may already know this. A retail investor can use Standard Chartered online trading brokerage to avoid paying the minimum brokerage fees. SCB does not charge the minimum fee. This is what I do myself. However, there are disadvantages. The shares are held by SCB in a nominee account. The investor is unable to exercise his vote as a shareholder. From personal experience, the SCB online platform is not reliable enough for my comfort and there were occasions when I was not able to log in. This is not an issue if the investor wants to buy because he can buy through other brokers. However, if he wants to sell, he can only do so through SCB because his shares are not held in the CDP account. For many small-time retail investors, it is tolerable. For active and larger-scale investors, they would rather go for more reliable platforms and retain their right to vote. May I ask which are the foreign brokers who charge $10 to $12 per trade? , For big retail IG clients trading Singapore share CFDs on a regular intraday basis, the rate is < 0.1% or $10 to $12 per trade. IG brokerage rate for CFD share trading |
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Post by hyom on Aug 8, 2015 6:53:40 GMT 7
Hi Zuolun, Thanks for the info. Being always on the lookout to lower my cost, I have considered using CFDs. A few months ago, I thought of using CFDs to invest in London stocks to avoid the exorbitant 0.5% stamp fee. I made some enquiries to my broker, Interactive Brokers (IBKR), which offer access to international stock markets. I hate leverage because it complicates risk management, so I asked if I can pay in full when buying CFD. The answer was no. Leverage is forced upon the investor who uses CFD. The bad thing is that leverage comes with financing charges. So, for someone who intend to hold a position over a longer-term period, CFD is not viable. Besides, why should I pay interest for a loan that I don't want in the first place? Furthermore, for CFD operators who use the market-making model, I am always suspicious whether the CFD operator would withdraw liquidity just when I needed it to sell to cut risk. By the way, for foreigners who want a cheap broker to invest in SGX market, IBKR provides very low commission. www.interactivebrokers.com/en/?f=commission&p=stocks2#asia-pacificThis broker was used by the foreign stock operators who manipulated Blumont. Singaporeans cannot use IBKR to invest in the Singapore market. Not sure why. Protectionism? If Singaporeans were allowed to buy Singapore stocks through IBKR, not only will our local brokers lose their lunch break, they will also have to switch to eating grass for lunch. As a customer who have used multiple local and foreign brokers, it is pretty obvious the U.S brokers win hands down with their platform. I hope our local brokers would buck up and do some self-reflection and take decisive action. Hi Zuolun, You may already know this. A retail investor can use Standard Chartered online trading brokerage to avoid paying the minimum brokerage fees. SCB does not charge the minimum fee. This is what I do myself. However, there are disadvantages. The shares are held by SCB in a nominee account. The investor is unable to exercise his vote as a shareholder. From personal experience, the SCB online platform is not reliable enough for my comfort and there were occasions when I was not able to log in. This is not an issue if the investor wants to buy because he can buy through other brokers. However, if he wants to sell, he can only do so through SCB because his shares are not held in the CDP account. For many small-time retail investors, it is tolerable. For active and larger-scale investors, they would rather go for more reliable platforms and retain their right to vote. May I ask which are the foreign brokers who charge $10 to $12 per trade? , For big retail IG clients trading Singapore share CFDs on a regular intraday basis, the rate is < 0.1% or $10 to $12 per trade. IG brokerage rate for CFD share trading |
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Great. It really feels like it is back to the old days when penny stocks can jump 100% a day with no reason or rhythm. 750 soon? 
