Monday, October 7, 2013

Have Financial Regulators learned anything?

When 3 shares, all connected by key shareholders, start rising exponentially at the same time, one would imagine that the regulators may sit up and take notice?

When these shares reach enormous valuation levels (PE's of many thousands for example) with limited asset foundation, one would imagine that the regulators would sit up and take notice?

When the 'chatter' amongst financial markets practitioners in bars and restaurants was focused on these shares and how something 'odd' was happening, one would imagine that the regulators would sit up and take notice? 

Of course they didnt! On Friday in Singapore, three shares, Asiasons, Lion Gold and Blumont all started tumbling before they were suspended. This morning upon relisting, they started tumbling again. Now losses in excess of 80% from Thursday's close have been seen. Once again, retail investors have been deserted by the regulators that are supposed to protect them. 

I have no clue whether anything sinister is going on there, but inevitably, some folks have made a lot of money at the cost of others who had less information. 

Plus ca change, plus c'est la meme chose!! 

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