12/23/2008

Junk stocks

Goh Eng Yeow wrote in the ST yesterday about the deplorable stock market, a stock market of penny stocks or worthless stocks. A stick of cigarette costs many times more than many of the stocks which are selling for less than 30c, some even less than 5c. Worst, companies dare not list here for they know that there will be very few subscribers. Imagine a stock market when companies are finding it difficult to raise money? And some are still sitting in their ivory towers thinking that we have the best stock market in the world and trading activities are still very good. We need a thorough revamp to save this stockmarket before the karang guni men move in to pick up the leftovers. Many stock exchanges have enforced a ban on short sellings which wiped off the hedge funds and their destructive activities against stocks. We are still merrily sleeping and wining with the hedge funds and allowing them to do their damages to the stocks. In the mean time our stocks will remain as penny stocks. Any up movement is just a respite, like the fattening of the lambs for the slaughter.

6 comments:

Matilah_Singapura said...

The stocks could have gone lower if there were no short-selling curtailment.

The greedy, stupid and crowd followers get what they deserve. The companies who exposed themselves to debt and fancy derivatives (derivatives = debt) get what they deserved.

To top it off, the losers trusted the govt to look after them.

Fucking sweet justice. Oh yeah!

redbean said...

what has the govt done for the people to think that the govt will take care of them?

their flats are priced at market price. their retirement plans are planned with the people's own money.

the people's future medical needs and paid in advance by the people themselves in the form of pay first, into the medisave, use or not, just too bad.

Anonymous said...

If you saw what AIG was worth then and now you would agree that the stock market is a casino with a few big name gurus in charge.

redbean said...

that i agree. the rules of the game have changed so much that it is worst than a casino. i do not want to comment about our casino. but look at wall street, it was fraud and deception all the way.

Anonymous said...

DBS just reported intending to raise $4 billion in rights issue. Wonder what's the real reason. No, not what they say officially, but er, you know lah! When western banks needed to raise their capital, something is brewing or already brewed.

redbean said...

maybe they want to extra money for a rainy day. maybe to buy up bank of america? they must have their plans. they don't raise money for fun.