Blumont

[CityFarmer]

I didn't read this Post in the past, I read it today, I take my hat off to these Value-Buddies:

Greengiraffe, who started this Post, Kelvesy in Post 2, Propertyinvestor in Post 3, Lanoitor in Post 5, Safetyfirst in Post 10, Stocker in Post 11 & Some-one in Post 12. They gave the warnings before the happenings.

If fellow Value-Buddies who had owned this stock took notice of your concerted cautions they would have escaped the slaughtering.

Nevertheless, if you are still holding to this stock, you may like to watch this video entitled:

What should you do with your Blumont shares?

http://www.investorcentral.org/

Not Vested.

Blumont honestly is not worthy of being discussed in a serious investment forum like Valuebuddies

Well, our forum need real examples for the likely downside of a highly speculative stock, right?

(not vested)

[sgd]

To be clear the crash happened not because of these warnings raised by forum members, neither was it due to speculation by some here that while the crash was in progress the insiders were unloading or getting their associates / relatives to unload that totally makes no sense because If their associates were to unload while they still holding the bag of shares they are just killing themselves.

the crash happened because goldman sachs unloaded on the market that much everybody now knows, had they not unloaded it could be very different.

http://www.bloomberg.com/news/2014-01-10...-quah.html

http://www.marketwatch.com/story/dinner-...2014-01-13

[GPD]

Let me just understand one thing here. If GS sold what Quah Su Ling owed them, say that $48mil, that means Quah has that $48 mill dumped somewhere? Puzzled?

[sgd]

You look at 5 billion market wipe out where all that money went to?

vs

48 mil lawsuit

get the picture

[GPD]

You look at 5 billion market wipe out where all that money went to?

vs

48 mil lawsuit

get the picture

Frankly no.

Before there is a $5 billion to be wiped out, it must have to be created first. Most of that $5 billion that got wiped out were based on price inflation on the basis of hope (greed?). So I don't know what is the real value that got wiped off.

Also I assumed lots of money have changed hands between investors/traders as well. Many would have taken profit along the uptrend. There are many which profited handsomely if they are not caught at the cliff. The poor souls are those who cannot monitor this counter and bought high and got caught off-guarded.

Those directors who borrowed money from these banks and uses their share as collaterals, did borrowed those money and those money must be have been dumped somewhere.

[specuvestor]

You dont need $5b to create $5b funny money. It is not a zero sum game.

They probably used the classic average up margin pyramid with a few operators. One averages up while the rest "takes a rest", build up equity (funny money) as stock price goes up and rotates amongst the operator. Key is that they have a drawdown level that absolutely cannot be breached else the deck of cards will fall apart.

Fact that she needs margin money to take up rights tells us the scheme is already very leveraged and hence also likely close to end game. It is therefore extremely interesting to me why GS would pick such a perfect time to pull the rug under them.

[sgd]

what I'm saying is if you look at the bloomberg article they loaned Quah 48 mil why would they after lending it then in an about turn demand client to cough it back up within 1.5 hours assuming the money already used up by the client, it's an impossible situation that nobody can ever respond to. Then by forced selling they risk jeopardizing client relationship reputation most of all getting back that loan what rationale would they have for risking and losing all of that?

did GS bet against their client?

market wipeout 5 billion while pending lawsuit is for 48mil

[greengiraffe]

http://www.businesstimes.com.sg/premium/...w-20140610

PUBLISHED JUNE 10, 2014
Blumont rallies after crashing to May low

The stock, most actively traded, closed 43% up at 5.3 cents yesterday
BYCAI HAOXIANG
haoxiang@sph.com.sg @HaoxiangCaiBT

SHARES in Blumont Group shot up 43 per cent on the back of heavy trading yesterday to become Singapore Exchange's most actively traded stock. The counter closed at 5.3 cents, up 1.6 cents, with almost 220 million shares changing hands.
Blumont, a products sterilisation company turned mining holding company, joined fellow penny counters LionGold Corp and Asiasons Capital in a revival since May 14, when all three stocks bottomed together.
Investor and stock activist Mano Sabnani, who does not hold any positions in the three, told The Business Times that there could be speculation that the investigations by the Commercial Affairs Department into trading activities involving these counters might result in actions against individuals instead of the companies as some had feared.
"If that's the case, there could be a sigh of relief. Also, there will always be bargain hunters," he said.

[greengiraffe]

http://infopub.sgx.com/FileOpen/Clarific...eID=313270

Soh need not work liao... someone must be very naive to be that creative...

[CityFarmer]

http://infopub.sgx.com/FileOpen/Clarific...eID=313270

Soh need not work liao... someone must be very naive to be that creative...

John Soh office is in LionGold's office, and carried a title of adviser. Logically, and legally his employment should be sponsored by LionGold, rather by Blumont.

(not vested)