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Midas Holdings
09-02-2018, 02:00 PM, (This post was last modified: 09-02-2018, 02:02 PM by corydorus.)
Post: #71
RE: Midas Holdings
Looks like nothing is free in this world.

http://infopub.sgx.com/FileOpen/SGX-MIDA...eID=488394

(Not Vested)

Just my Diary
corylogics.blogspot.com/



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09-02-2018, 10:25 PM, (This post was last modified: 09-02-2018, 10:30 PM by mobo.)
Post: #72
RE: Midas Holdings
(09-02-2018, 02:00 PM)corydorus Wrote: Looks like nothing is free in this world.

http://infopub.sgx.com/FileOpen/SGX-MIDA...eID=488394

(Not Vested)

This is a very interesting case study on mental blind spots all of us suffer from time to time. When the price gap first opened up between SGX and HKEX spots, most people seemed to suspect there was price manipulation at SGX for nefarious motives. That was the basis of the recent petition. The most common theory going around then was that insiders were artificially depressing prices in SGX in order to privatize and/or relist in HKEX.

Implicit in these theories was the assumption that the SGX price was the 'wrong' one being manipulated and HKEX price was the 'correct' one. Now in retrospect it seems painfully obvious that the reverse could just as well be true, SGX prices were actually reflecting of the drama that was to come. The HKEX price was in fact 'wrong'. I think all of us, invested or not, can and should learn something out of this.

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09-02-2018, 10:34 PM, (This post was last modified: 09-02-2018, 10:35 PM by BlueKelah.)
Post: #73
RE: Midas Holdings
(09-02-2018, 10:25 PM)mobo Wrote:
(09-02-2018, 02:00 PM)corydorus Wrote: Looks like nothing is free in this world.

http://infopub.sgx.com/FileOpen/SGX-MIDA...eID=488394

(Not Vested)

This is a very interesting case study on mental blind spots all of us suffer from time to time. When the price gap first opened up between SGX and HKEX spots, most people seemed to suspect there was price manipulation at SGX for nefarious motives. That was the basis of the recent petition. The most common theory going around then was that insiders were artificially depressing prices in SGX in order to privatize and/or relist in HKEX.

Implicit in these theories was the assumption that the SGX price was the 'wrong' one being manipulated and HKEX price was the 'correct' one. Now in retrospect it seems painfully obvious that the reverse could just as well be true, SGX prices were actually reflecting of the drama that was to come. The HKEX price was in fact 'wrong'. I think all of us, invested or not, can and should learn something out of this.
what i learned.
1)  Whoever names a company Midas hoping to use his affliation with gold obviously has not read the story properly.
2)  whatever dodgy stuff happens in HK listco,  can be just as dodgy as mainland S-Chips
3) Dun buy Schip or listco based in HK but come list on SGX.
Virtual currencies are worth virtually nothing.

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10-02-2018, 01:09 PM,
Post: #74
RE: Midas Holdings
(09-02-2018, 10:34 PM)BlueKelah Wrote: what i learned.
1)  Whoever names a company Midas hoping to use his affliation with gold obviously has not read the story properly.
2)  whatever dodgy stuff happens in HK listco,  can be just as dodgy as mainland S-Chips
3) Dun buy Schip or listco based in HK but come list on SGX.

Just to clarify, Midas was first listed on SGX before it was secondary listed on HKEX
http://midas.listedcompany.com/

Some notes from a kind forumer on some differences: https://www.valuebuddies.com/thread-3875...#pid144590

I feel it is still early to really decide on the "lessons learnt" while the dust haven't settled. At the same time, more information has yet to be revealed or special audit to be performed.
The "lessons" you mentioned are very "intuitive" and sometimes i like to think that these are heuristics that our brain can easily come up with - they are easy and useful most times, but i thought as investors (long term), it would be beneficial to keep heuristics at bay, and objectively look at both sides of the coin before zooming down into the rootcause or create the right "mental model" (i am not literally good enough to describe this good enough and have to borrow from Charlie Munger)

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10-02-2018, 07:15 PM,
Post: #75
RE: Midas Holdings
Secondary listing in Hongkong do not require minimum spread of shareholders. As long as HKSE is satisfied with the protection of shareholders on the primary listing exchange, generally they do not question the trading patterns of the secondary listed stock. In the case of Midas, the volume traded on SGX was much bigger than HKSE but the price was very much lower....which defied logic. Although the shares are fully fungible, there is at least a 6 week delay in doing the complete cross border transfer. Of course, with hindsight, we now know the price traded in Hongkong was probably fake and probably with the intention to induce purchases in SGX. Hope the authorities have enough evidence to initiate an investigation.

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