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Actually IMHO the biggest risk of margin financing is that technically they can withdraw your line anytime, even if u just leverage buy Singtel shares.
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(19-10-2014, 03:59 PM)specuvestor Wrote: Actually IMHO the biggest risk of margin financing is that technically they can withdraw your line anytime, even if u just leverage buy Singtel shares.
To add, another big risk is your collateral becomes non-marginable. Illiquid deep value stocks are prone to this risk.
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Just happen to see the announcement during my regular scanning...
(not vested)
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The Board of Directors (the “Board”) of Blumont Group Ltd. (the “Company”, and together
with its subsidiaries, the “Group”) wishes to announce that the Group is expected to report
net losses for the third quarter (“3Q2014”) and nine months ended 30 September 2014
(“9M2014”).
http://infopub.sgx.com/FileOpen/9M2014_R...eID=319477
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IIRC, Blumont is the only company chosen the "downgrading route"...
(not vested)
Blumont mulls transfer of listing to Catalist board
SINGAPORE (May 20): Blumont Group ( Financial Dashboard) announced it is considering a transfer of the company’s listing from the Mainboard of the Singapore Exchange to the Catalist board.
Blumont said the proposed transfer will provide the company with a more suitable platform for the listing and trading of its shares and better allow the company to attract investors in the future.
In addition, issuers on the Catalist board do not have to comply with the Mainboard minimum trading price requirement of 20 cents as a continuing listing requirement.
As such, Blumont, which is trading at 1.1 cents as at 11:55 a.m., said it will not be proceeding with its proposed share consolidation announced on April 24.
...
http://www.theedgemarkets.com/sg/article...list-board
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Blumont is not the only one. There are a few others who had already chosen to downgrade to Catalist. Joyas, LionGold, Sinjia Land etc
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1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Just for discussion purposes, hw to block such an unfair deal?
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