9/04/2014

Mickey Mouse stocks


Goh Eng Yeow wrote an article in ST about the Mickey Mouse stocks in the SGX a few days ago. To him this is not desirable and not the norm. I think it is disgraceful in away, a joke. How can a main board stock be worthless or be worth less than 1c? Please don’t laugh, this is serious business, maybe a very sophisticated strategy of great minds, too deep and complex for ordinary beans to figure out, like toxic bonds and derivatives, for a main board stock to be value at less than 1c. Is this is a new game designed by intelligent gamers for daft investors?
 

On the other hand SGX is reducing the board lot of 1000 shares to 100 shares. Would they go further to reduce them to unit share to increase liquidity? They have also reduced the bid value to 0.1c to induce liquidity. Now, is it funny, is it strange, fishy?
 

How did the dominance of penny stocks in the main board come about and remain so for so long? Was it by design or by fluke? This thing did not happen over night. It has been like that for several years. And by reducing the board lot size and bid value to less than Mickey Mouse, what are the likely effects? More Mickey Mouse business?
 

My guess is that Mickey Mouse stocks are desirable and intended to some quarters. I may be wrong, but I am only guessing. The question is why? Who benefits from Mickey Mouse stocks and Mickey Mouse bid sizes and bid values? Knowing the answer will explain why Mickey Mouse stocks are desirable and allowed to exist in the main board. What? Small investors are the beneficiaries to Mickey Mouse stocks? Try again.

PS. Is this the stock market version of cheap foreign workers is good for the market? We have a Sesdaq for cheap and high risk stocks. There is no place for super penny stocks in the main board to cheapen the stock market aka Sungei Road bazaar. The main board must be a place for quality stocks.

Kopi Level - Green

10 comments:

Anonymous said...

Per my previous post;

Why you worry so much?
Let me teach you a Buddhist mantra to save you time from being distracted by all these background noises.

Every morning, before you read the Straits Times, repeat this Buddhist mantra 10 times:
"Anything good, the PAP Millionaires will not call me. Any free service for Singapore, PAP will guarantee call me to volunteer."

Anonymous said...

Anon 10:41. No wonder we are called Sinkies. If every Sinkie thinks like you, there will be no Sinkies left once the foreigners take over this island as theirs.

Boh chap. Better to leave this place, emigrate.

Anonymous said...

Ask the angmo in charge. He is paid handsomely do all the explaining

Virgo49 said...

Lau Goh wants every sinkies to invest in stocks.

So, Mainboard one cents also can.

Not enough monies to buy then make it 100 to a lot instead of 1000.

Made the economy VIBRANT man, many people people in Sinkie Land like ants in a nest, mice running in circles in a small cage.

Must beat Hong Kong like the F1 telecase to the world and see how we the PAP built the Nation, if there is one.

Anonymous said...

New Buddhist mantra before reading the Straits Times:
"Vote Opposition to make PAP share more goodies with Singaporeans instead of aliens"

Anonymous said...

Sungei Road Bazaar is closing down.

Don't know about SGX.

Anonymous said...

"How can a main board stock be worthless or be worth less than 1c?"
RB

This is to make main board stock affordable even to the poorest Sinkies.

And surely this must be a good thing, tio bo?

Anonymous said...

Tiok.

And since there are more poorer Sinkies than rich ones, so it makes business sense by being a "volume" business.

There may be better profits selling a product at an affordable $2 each to 10000 poor Sinkies than at $20 each to only 100 richer Sinkies. Just do the maths.

Anonymous said...

Papigs so smart

I reallee beholden to old fart kuan yew for tranforming a fishing village to a metropolis

N for nurturing his dragon son to bring comforts to his faithful daft stinkapornang

Long live old fart kuan yew... it's your karma for your zombie state

Leemember... papigs is 4ever.

b said...

I agree. Penny stocks is to con minority stockholders and to encourage speculating.