Lawsuits shine light on Goldman’s role in Asiasons, Blumont and LionGold crash

[brattzz]

wow 8 billion wiped off and these eight defendents only lost less than 100 million? Dunno who is the bigger losers in this episode

someone who shorted these 3 counters of cos!! someone who shorted BIG BIG time!!

[specuvestor]

wow 8 billion wiped off and these eight defendents only lost less than 100 million? Dunno who is the bigger losers in this episode

Some of these guys don't really lose , their costs are very low , few cents a share before it shoot up to more than S$2.00.

These guys probably forked out less than $25m to manipulate the stocks by pyramiding upwards. Based on the lawsuit they even have to get GS lines to subscribe to rights tells you their OVERALL cost cannot be a few cents though thats maybe where they started.

They defaulted on Interactive Brokers and had to do a back-to-back lawsuit to keep the barbarians at the gate. I'm not symapathetic to them but this is not just an opportunity cost to them either.

This is the biggest syndicate misfire in past decade IMHO.

[yeokiwi]

Laugh..
They did not expect GS to pull the lines.
They were just one step away from a successful right issue. haha.
The proceeds from the right issue will enable them to continue the pump and dump.

Actually, the price of 5cts per right share with the mother share at $1.3 was probably indicative that the pump and dump gang did not have much cash to pay for a higher price right share.

It's kind of weird to price the right share at 5cts while the mother share is $1.3.
It's probably cheaper to do placement at $1.2 but naturally, no sane investors will want to fork out $$$ for junks.

[specuvestor]

^^^ agree... they were so close to the "dump" stage IMHO because it is obvious they are maxed out and they (or the puppet masters) are not newbies. Post rights think they will be winding down like IPCO the last time

阴沟里翻船。。。 thats why I wrote previously it's baffling GS risk management so "chun" to pull out at last minute and obviously leave them to die cause not many could raise that kind of money with such short notice.

[opmi]

when you control when the rights shares become 'tradeable', can front-run.

[Swinger]

The following are just my understanding and interpretation for discussion sake . .

IB offers cash and margin accounts. The court filings suggest that the 8 IB accts control by Algo Capital are margin accounts and force selling started possibly on the 4 Oct (Mon) morning before SGX suspension at 9.50 am. Selling continued on the 7 Oct after resumption of trading when SGX declare Blumont as designated secutities. The same can be said of Asiasons and Liongold. There is still a shortfall of $79 mil after all outstanding positions have been sold that IB is now trying to recover.

It is interesting that GS managed to get out of the door ahead of IB because IB employ a highly sophisticated system that auto-liquidate without prior notice/warning the instance an account breaches margin requirement. The platform is very robust from my experience will minimal human intervention. However, no system can withstand 80-90% plunge in a single day.

Another question that comes to mind is that since a substantial amt of shares were bought under margin acct in IB how did Quah Su-Ling still manage to pledged another big chunk with GS.

[yeokiwi]

Another question that comes to mind is that since a substantial amt of shares were bought under margin acct in IB how did Quah Su-Ling still manage to pledged another big chunk with GS.

Eh...according to the first post of this thread
Quah initially pledged three million Asiasons shares as collateral for the credit facility.

So...
Quah pledged her shares with GS to gain access the credit facility.
Using the money from GS and put into IB, she bought more BAL using margin acct.

That may be the reason why GS was so fast in reacting since it probably could piece all the information together.
As for IB, they probably did not know that the money that was deposited into the margin account came from a loan.

[specuvestor]

How did GS know the loan was used as margin to IB? And I wouldn't call it "fast" but rather nick of time... which is incredible.

Algo Capital is basically an operator to push up prices with high volume and attract attention. Quah was pyramiding upwards with increasing credit facilities from increasing share price to fund margins. However IMHO I think all these people leads back to a Malaysia linked entity.

[cif5000]

However IMHO I think all these people leads back to a Malaysia linked entity.

Do you think they are just the foot soldiers?

[cfa]

Soh and Lee were good friend from same Kumpung of Batu Pahat.