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15-05-2017, 03:11 PM
The Enigma Network: 50 stocks not to own
15 May 2017
Webb-site.com
Sometimes, a picture is really all you need to know why you should not invest in a company, or in this case, 50 HK-listed companies in what we will call the "Enigma Network". In the diagram below (click or zoom your browser to get the fully glory), some of them are known bubbles, on which the SFC has issued concentration warnings. It is remarkable that despite those warnings, the listed companies which own those shares continue to hold them. They will probably do so until the bubble bursts, because the gains on such stocks are not actually intended to benefit their shareholders. The people who engineer such bubbles have other plans.
In other cases of non-bubbles, there are multiple holdings below the normal 5% disclosure threshold which when aggregated, provide significant voting power when the companies seek approval from "independent" shareholders to do something that might not make sense to others.
This network has come into view only because, about a year ago, in frustration with the opacity of many balance sheets, Webb-site began filing complaints with the Stock Exchange that the for-profit regulator had failed to enforce a Listing Rule which requires annual and interim reports to disclose "significant investments held, their performance during the financial year, and their future prospects".
More details in https://webb-site.com/articles/enigma.asp
15 May 2017
Webb-site.com
Sometimes, a picture is really all you need to know why you should not invest in a company, or in this case, 50 HK-listed companies in what we will call the "Enigma Network". In the diagram below (click or zoom your browser to get the fully glory), some of them are known bubbles, on which the SFC has issued concentration warnings. It is remarkable that despite those warnings, the listed companies which own those shares continue to hold them. They will probably do so until the bubble bursts, because the gains on such stocks are not actually intended to benefit their shareholders. The people who engineer such bubbles have other plans.
In other cases of non-bubbles, there are multiple holdings below the normal 5% disclosure threshold which when aggregated, provide significant voting power when the companies seek approval from "independent" shareholders to do something that might not make sense to others.
This network has come into view only because, about a year ago, in frustration with the opacity of many balance sheets, Webb-site began filing complaints with the Stock Exchange that the for-profit regulator had failed to enforce a Listing Rule which requires annual and interim reports to disclose "significant investments held, their performance during the financial year, and their future prospects".
More details in https://webb-site.com/articles/enigma.asp
Specuvestor: Asset - Business - Structure.