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Blumont
Oct 15, 2013 19:10:26 GMT 7
Post by oldman on Oct 15, 2013 19:10:26 GMT 7
Even if the designated status is lifted from Blumont, I think the Blumont stocks will continue falling. This is because of the heavy forced selling by the banks over the past few weeks. More late announcements on these forced sellings were made at 11pm last night. Problem with forced selling is that the lower the share price goes, the more force selling may take place. It is a vicious cycle. Also, short sellers may smell blood and they may want to short the stock even more when the designated status is lifted. This is because short sellers know that bank forced selling is likely to be more aggressive the lower the share price goes. Hence, it may be a blessing in disguise for Blumont to be currently under the designated status. Moreover, with the 1 for 2, 5cts rights shares flooding the market on the 22nd of Oct, there is likely to be increased downward pressure on the Blumont share price in the near future. As investors now lump the 3 stocks together and with some forced selling in LionGold as well, I don't think the lifting of the designated status on the other 2 stocks will make any difference. As always, I stand corrected. Only time will tell. Blumont share price: 0.147 For me, this is an exercise of the brain as I do not own any of these stocks. Attachments:
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Blumont
Oct 15, 2013 19:20:01 GMT 7
Post by oldman on Oct 15, 2013 19:20:01 GMT 7
The late announcements on the forced selling also kicks up the question of whether the financial institutions holding on to those deemed shares should take the responsibility of notifying the exchange within the stipulated 48 hours. As it stands, this seems to be a loophole in the notification process. Some of these announcements made last night on Blumont were for shares that were forced sold 1 week ago!
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Blumont
Oct 16, 2013 19:49:01 GMT 7
Post by oldman on Oct 16, 2013 19:49:01 GMT 7
Interesting that 27.8% of the rights were not taken up by the shareholders but good thing for the company is that the excess rights application more than covered this shortage.
Interesting because this means that either the 27.8% did not have the capital to inject or they did not think that the share price will be above 5cts on the 22nd of Oct..... otherwise, it will certainly be in their interest to subscribe to these deeply discounted rights.... even by today's closing share price of 12.3cts.
--------------------
The Board of Directors (“Board”) of Blumont Group Ltd. (博诺有限公司) (the “Company”) is
pleased to announce that as at the close of the Rights Issue on 10 October 2013, valid
acceptances of and Excess Applications for a total of 1,181,578,284 Rights Shares,
representing approximately 137.23% of the total number of Rights Shares offered under the
Rights Issue, were received.
Details of the valid acceptances of and Excess Applications for the Rights Shares received
are as follows:
(a) valid acceptances for a total of 621,693,923 Rights Shares representing approximately
72.21% of the total number of Rights Shares offered under the Rights Issue were
received; and
(b) Excess Applications for a total of 559,884,361 Rights Shares representing
approximately 65.03% of the total number of Rights Shares offered under the Rights
Issue were received.
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Post by oldman on Oct 18, 2013 4:43:45 GMT 7
Interesting that the security for the bonds is the key assets of the company while the primary use of the bond is to fund a convertible bond facility that Blumont is providing to Discovery Metals. If I buy a house using a bank loan, I assume that the security for the loan is just on the house. Also worth reading the Mandatory Tranche Conditions on the closing price of the shares. infopub.sgx.com/FileOpen/Blumont_Convertible_Bonds_Platinum.ashx?App=Announcement&FileID=260172------------------ As continuing security for the due redemption of the Bonds, the Company shall provide PPVAF as collateral all securities owned by the Company and/or its subsidiaries in Discovery Metals Limited (ASX:DML), Celsius Coal Limited (ASX:CLA), Cokal Limited (ASX:CKA), Kidman Resources Limited (ASX:KDR) and Powerlite Ventures Limited until all outstanding Bonds have been either converted or redeemed. ------------ The primary use of proceeds from the bond will be to fund a convertible bond facility of US$100 million to be issued by Discovery Metals Limited (“DML”), a copper producer listed on the Australian Securities Exchange and Botswana Stock Exchange that Blumont had announced on 19 September 2013. The investment in DML is via its joint venture firm, Blumont Copper Pte. Ltd., headed by industry expert, Ms Inés Scotland. infopub.sgx.com/FileOpen/PRBlumontSecuresUS200milfunding.ashx?App=Announcement&FileID=260173 |
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Blumont
Oct 18, 2013 16:45:29 GMT 7
Post by puregold on Oct 18, 2013 16:45:29 GMT 7
PPVAF is taking a big risk in betting a company that is collapsing, of course more collaterals are needed. But I wonder why they are interested in Blumont in the first place? Will Blumont be able to pay the hefty interest?
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Post by oldman on Oct 18, 2013 16:49:12 GMT 7
PPVAF is taking a big risk in betting a company that is collapsing, of course more collaterals are needed. But I wonder why they are interested in Blumont in the first place? Will Blumont be able to pay the hefty interest? It is now a game for the big guns. Up or down, really is up to them. I rather stay sidelined.  |
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Blumont
Oct 18, 2013 17:54:14 GMT 7
Post by oldman on Oct 18, 2013 17:54:14 GMT 7
As expected.....
------------
18 October 2013
SGX ends designation of Asiasons Capital, Blumont Group and LionGold Corp
Singapore Exchange (SGX) will end the designation of stocks in Asiasons Capital Limited
(“Asiasons”), Blumont Group Ltd and its related securities (“Blumont”), and LionGold Corp Ltd and its
related securities (“Liongold”) on Monday, 21 October 2013, at 8.30am. Trading in these stocks has
since become more stable.
It is important for market forces to determine share prices in fair and orderly trading. The designation
of the stocks and its ending are done in the interest of the investing public and the market.
SGX will continue to monitor closely the trading activities in the marketplace. The investing public is
advised to trade with care and caution.
-End-
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Blumont
Oct 22, 2013 21:23:46 GMT 7
Post by puregold on Oct 22, 2013 21:23:46 GMT 7
The late announcements on the forced selling also kicks up the question of whether the financial institutions holding on to those deemed shares should take the responsibility of notifying the exchange within the stipulated 48 hours. As it stands, this seems to be a loophole in the notification process. Some of these announcements made last night on Blumont were for shares that were forced sold 1 week ago! Another late announcement. Late by 12 days. With lame excuse: "Mr Neo only had knowledge of the sale of shares due to bank loan recall/forced selling of the securities on 21 October 2013."   infopub.sgx.com/FileOpen/Blumont_NKH_211013_Form1.ashx?App=Announcement&FileID=260662 |
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Post by oldman on Oct 23, 2013 5:12:18 GMT 7
The late announcements on the forced selling also kicks up the question of whether the financial institutions holding on to those deemed shares should take the responsibility of notifying the exchange within the stipulated 48 hours. As it stands, this seems to be a loophole in the notification process. Some of these announcements made last night on Blumont were for shares that were forced sold 1 week ago! Another late announcement. Late by 12 days. With lame excuse: "Mr Neo only had knowledge of the sale of shares due to bank loan recall/forced selling of the securities on 21 October 2013." infopub.sgx.com/FileOpen/Blumont_NKH_211013_Form1.ashx?App=Announcement&FileID=260662Thanks for the info. Yes, slightly better as this announcement was made at 9:30pm instead of 11pm! My reading is that big money is still very much in this game and it is really their call as to whether the shares go up or down. One's guess is at best 50% though I would think that the chances of making money is much less as big money is very good at disguising its intentions. There were lots of excess applications for the rights at 5cts. My guess is that the shares will end up much lower than the current 21cts in 2 to 3 months time....with a lot of "stuckist". But as stated, my guess is as good as yours. |
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Post by oldman on Oct 24, 2013 6:06:17 GMT 7
More forced sales announced late last night. A novel way to exit.
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Post by puregold on Oct 24, 2013 7:40:14 GMT 7
More forced sales announced late last night. A novel way to exit. Given a choice, the insiders do not want to exit this way, they must have over leveraged their shares. I guess many substantial shareholders are pledging their shares to get more funding. |
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Post by oldman on Oct 24, 2013 7:44:47 GMT 7
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Post by puregold on Oct 24, 2013 8:12:26 GMT 7
Wow, that was a hell of a lot of paper wealth created and vanished! Neo should still be okay I guess... |
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Post by oldman on Oct 24, 2013 8:34:01 GMT 7
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Blumont
Oct 24, 2013 21:41:29 GMT 7
Post by puregold on Oct 24, 2013 21:41:29 GMT 7
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