Blumont

I feel all this is partly because of US debt problems create the selling mood it hadn't shutdown their government there probably won't be that many short sellers around.

Somebody said stock market is not casino what is this then? Those who did well shorting this at other people's expense is not gambling in a casino?

not vested

Blumont Press Conference Information (8th Oct 13)

http://infopub.sgx.com/Apps?A=COW_Corpor...&F=1013045


So...the press conference was just to announce the new Chairman & reiterate what the Company does?

The press conference and new CEO helps. The current market price is about the lowest price will be paid by Molyneux.

Blumont names former SouthGobi CEO as chairman: shares jump

Blumont Group named the former chief executive officer of SouthGobi Resources as chairman, spurring a rebound in Blumont stock in Singapore trading after it plunged by a record yesterday.

Alexander Molyneux will buy 135 million Blumont shares and become chairman after the transaction is completed, the company said in a statement yesterday. Molyneux was ousted as CEO of coal miner SouthGobi in September 2012. Prior to that he was managing director, head of metals and mining investment banking, Asia Pacific, for Citigroup Inc.

Blumont jumped as much as 131% today, reversing two days of losses that shaved $4.9 billion from its market value as restrictions were placed on the stock. The appointment may assist Blumont’s expansion in minerals and energy after the company said this month it has held talks with 20 potential takeover targets or partners since December.

“The new development would appear that Blumont is doing everything they can to instill confidence,” said Kelly Teoh, a market strategist at brokerage IG Markets in Singapore. “This should stem further selling and stabilize the share price.”

Blumont traded 58% higher at 20.5 cents as of 1:15 p.m. local time, giving it a market value of $529.5 million. Before the rout began Oct. 3, the stock had advanced more than tenfold this year.

The final price paid by Molyneux will be between 20 cents and 60 cents a share, Blumont said. The transaction is expected to close within 30 days.
...
http://www.theedgesingapore.com/the-dail...jump-.html

I am thinking.....

if there was forced sale on 2 Oct 2013 when share price was above $2. With the fall in share prices, then most likely there will be more forced sale.......

it might get even cheaper.......in the end with the sale of shares to 'new' investor(maybe friend friend to help stop the fall in share price), NEO might turn out to hold 0 shares......

no vested interest

(08-10-2013, 03:55 PM)Behappyalways Wrote: I am thinking.....

if there was forced sale on 2 Oct 2013 when share price was above $2. With the fall in share prices, then most likely there will be more forced sale.......

it might get even cheaper.......in the end with the sale of shares to 'new' investor(maybe friend friend to help stop the fall in share price), NEO might turn out to hold 0 shares......

no vested interest

I don't understand the rationale for purchasing Blumont shares nowadays.
There are other natural resources counters with fully developed supply chains trading for a lower valuation and investors looking at the Asian natural resources sector would do well to heed the experience of Bumi Resources recently.

Blumont had a nice reflexive feedback loop going previously but it has reversed.

This process is documented quite well in George Soros' book The Alchemy of Finance.

Push up share price--> use overvalued shares to raise funds or perform bootstrap acquisitions--> Intrinsic value rises--> Share price rises and repeat.

I doubt the company will be able to gather enough confidence in the market to start the process all over again.

there are reasons why people buy shares......

some buy because they want to buy a portion of the biz.......

some buy because they expect the following guy to buy from them at a higher price.....

some might have click the wrong share.....

so many reasons why people buy......

but all of them call themselves 'investor' ^^

(08-10-2013, 04:32 PM)Behappyalways Wrote: there are reasons why people buy shares......

some buy because they want to buy a portion of the biz.......

some buy because they expect the following guy to buy from them at a higher price.....

some might have click the wrong share.....

so many reasons why people buy......

but all of them call themselves 'investor' ^^

I understand what you're trying to say. I just feel that for far too many retail investors here in Singapore, the reason they are holding their shares is because of a failed contra trade and not that they intended to hold on to it at the time of purchase.

I think many people are seeing value in Blumont by comparing it's price now to it's recent share prices last week. I am trying to say that it is a totally different company now.

like what peter lynch said you must have a story when u buy a stock.....

so what is the story that prompts the 'investors' to buy.....if the story is still there but price drops by a lot, then might be an opportunity to buy more....

but to many, there isn't any story and anyhow buy......well if you do not respect your money then sad to say money will not respect you and might choose to leave you.....

You might notice that moderator (and admin) were busy deleting inappropriate posts in this thread.

We will continue to moderate the thread. Please refrain from posting accusation without fact(s) or "cut and paste" them from nowhere.

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(08-10-2013, 04:32 PM)Behappyalways Wrote: there are reasons why people buy shares......

some buy because they want to buy a portion of the biz.......

some buy because they expect the following guy to buy from them at a higher price.....

some might have click the wrong share.....

so many reasons why people buy......

but all of them call themselves 'investor' ^^

Whatever the reasons behind people buy shares as investors - including many who are actually speculating, knowingly and unknowingly - do remember this: Financial markets have no mercy to those who do not know what they are doing.

Despite opening at a high of $0.30 today (vs. just $0.13 at the close yesterday), Blumont touched a low of $0.12 and closed the day at $0.13, same as yesterday. So many people who traded this counter today - just like yesterday - would have lost money!