Proposal of a new rule to CSE

Guess the Colombo Stock Market is heading towards the worst ever crash in Island Nations History and the foreign elements together with Local Investors and/or other Bureaucrats are on the verge of having the Golden Opportunity to grab the most rewarded & strongest stocks of Island Nations Blue chips as well as other counters which has the potential to develop into exceptional profit making entities in the future...also Real estate/property sector stocks are dropped down even far below the Asset values and this would be a chance for those with sound financial status to get the control of Our properties in and around the heart of Colombo & for sure not miss the world most beautiful water front tourism destinations land ownership through buying there stock at much below the property value as well...

I would like to suggest to the SEC & CSE heads to introduce a Price band in par with the Net Asset value of every stock as the bottom price to be traded on the floor and in every quarterly to evaluate the Financials & revise the Bottom Price of the stocks...so at least still the Market truns into Normalcy, we Sri Lankan will be able to protect the most valuable entities going into hands of foreigners/bureaucrats and /or at least get a fair price for the properties/assets of each & very company listed in CSE

Glad to see the ideas of our members...!

If you look at past 20 years performance of ASPI,It has ended 10years in red (by end dec).It will continue to do so.We can not change as it is the nature of the market.

@RIO: I believe that market forces should determine the prices of shares. Some companies (particularly loss-making ones) deserve to be traded at less than NAV.

Rio,
This is the first time I'm seeing something unusual or not practical from ya!
machang,
Anyone should not impose rules n regulations or policies which can affect the free flow (free movement) of the markets!
That's what I believe!

Supply n Demand has to decide the prices...not any other thing!

Correctly said Antonym

Antonym wrote:@RIO: I believe that market forces should determine the prices of shares. Some companies (particularly loss-making ones) deserve to be traded at less than NAV.

Yes, any sort of control will negatively affect to the market.

Further to Antonym's and Stumpy's point, the demand of shares mainly affected by the market,politics and industry news.

Anotomy, Stamphy, Bullrun....

Yes...I too a strong advocate of free market...but at this moment my concern was on the National interest of saving the Country's large & strong Blue Chips & Properties falling into foreign hands at below the par value due to our stupid Decision makers untimely & overnight changes on regulations + greedy HNWI + Broker Manipulators who/which made the downfall of CSE, one day we will have to beg from those Foreigners to get back the control of our own assets...

What can we do to protect the Blue Chips from diverting the control from Locals to foreigners,... in some countries there is a max % limit a foreign company/fund can acquire , but here in SL I couldn't find such a regulation/law...! What I believe is , if SL to become a Developed country, we should have a strong financial/economic system and therefore we should hold at-least 50 _70 % of each and every business/company registered in SL and most importantly the Blue chips & Conglomerates...!

@Hanoifortune
Brother Thanks for your advice, I was in stock trading/investing since 1991 and have witnessed & faced all those challenges in the past...but that time it was with a Terrorism war and no foreigner was interested in acquiring a stock/control of any SL company even given on free to them...now the situ is different & SL is to become one of the most important economies as West/Mid east proved failed and far east is running out very soon...then its South Asia & with SL open MKT policies out of all SAARC countries all will focus into SLas a emerging Business Hub...just as Singapore in another 10 - 15 years time...

Rio, sorry for advising you with out knowing that you have been trading since 1991.Hope you are one of following

THE TOP 20

1. Mr KDD Perera
2. Mr S E Captain
3. Mr Muzaffar Ali Yaseen
4. Mr YSHIK Silva
5. Mr RM Nanayakkara
6. Mrs Lorraine EM Yaseen
7. Mr A Page
8. Mr HKJ Dharmadasa
9. Mr VR Page
10. Ms L A Captain
11. Mr K Balendra
12. Mrs TA Selvaratnam
13. Dr Sena Yaddehige
14. Mr GC Wickremesinghe
15. Mr JC Page
16. Ms MM Page
17. Mr IC Nanayakkara
18. Mr AM Weerasinghe
19. Mrs KU Amerasinghe
20. Mr A Devasurendra

Hanoifortune wrote:Rio, sorry for advising you with out knowing that you have been trading since 1991.Hope you are one of following

Nope....

RIO wrote:Anotomy, Stamphy, Bullrun....

Yes...I too a strong advocate of free market...but at this moment my concern was on the National interest of saving the Country's large & strong Blue Chips & Properties falling into foreign hands at below the par value due to our stupid Decision makers untimely & overnight changes on regulations + greedy HNWI + Broker Manipulators who/which made the downfall of CSE, one day we will have to beg from those Foreigners to get back the control of our own assets...

What can we do to protect the Blue Chips from diverting the control from Locals to foreigners,... in some countries there is a max % limit a foreign company/fund can acquire , but here in SL I couldn't find such a regulation/law...! What I believe is , if SL to become a Developed country, we should have a strong financial/economic system and therefore we should hold at-least 50 _70 % of each and every business/company registered in SL and most importantly the Blue chips & Conglomerates...!





@Hanoifortune
Brother Thanks for your advice, I was in stock trading/investing since 1991 and have witnessed & faced all those challenges in the past...but that time it was with a civil war and no foreigner was interested in acquiring a stock/control of any SL company even given on free to them...now the situ is different & SL is to become one of the most important economies as West/Mid east proved failed and far east is running out very soon...then its South Asia & with SL open MKT policies out of all SAARC countries all will focus into SLas a emerging Business Hub...just as Singapore in another 10 - 15 years time...

Dear Friend,
I fully agree with your concern. Our valuables they acquire for nothing. This was mainly happened due to negative sentiments of local investors and Institutions. Root course may be the too much interfering by the regulators. Once it was highly performed. With the introduction of 10% and other rules it started to come down continuously.

Now if they introduce another rule even it may give a wrong impact.

Don't give them the fish; give them the fishing rod.

In my view, regulation is required but control is not. Introducing a price floor is like giving a fish to a hungry man; he can survive for only one day. But showing him how to catch fish will be long lasting.

What is lacking here is adequate ways of educating investors about risk, return and opportunities; and the investors dedication to learn those.

We need some charismatic investment 'gurus' who can 'shout' about risks and opportunities in the market. As I understand, there is a big vacuum there.

now we will give to the forigners...later will buy them with high prices or wise versa..

RIO wrote:Anotomy, Stamphy, Bullrun....

Yes...I too a strong advocate of free market...but at this moment my concern was on the National interest of saving the Country's large & strong Blue Chips & Properties falling into foreign hands at below the par value due to our stupid Decision makers untimely & overnight changes on regulations + greedy HNWI + Broker Manipulators who/which made the downfall of CSE, one day we will have to beg from those Foreigners to get back the control of our own assets...

What can we do to protect the Blue Chips from diverting the control from Locals to foreigners,... in some countries there is a max % limit a foreign company/fund can acquire , but here in SL I couldn't find such a regulation/law...! What I believe is , if SL to become a Developed country, we should have a strong financial/economic system and therefore we should hold at-least 50 _70 % of each and every business/company registered in SL and most importantly the Blue chips & Conglomerates...!

@Hanoifortune
Brother Thanks for your advice, I was in stock trading/investing since 1991 and have witnessed & faced all those challenges in the past...but that time it was with a civil war and no foreigner was interested in acquiring a stock/control of any SL company even given on free to them...now the situ is different & SL is to become one of the most important economies as West/Mid east proved failed and far east is running out very soon...then its South Asia & with SL open MKT policies out of all SAARC countries all will focus into SLas a emerging Business Hub...just as Singapore in another 10 - 15 years time...

I think ur suggestion is a great one. You are thinking of on behalf of the country and its long standing development.But most of the poeple can not understand these things either because of their greediness or because they think this is not practical.

And also this shortsighted policy makers also look in to short term gains rather than sustainable development.I can not agree with ur one word which is civil war....I think better word is war against terrorism.

Whitebull wrote:
.................................I can not agree with ur one word which is civil war....I think better word is war against terrorism.

Oh God, had great mistake...thank you for pointing out, Yes we SL never had a civil war...its only a cause of Separatist Terrorism...
I'll correct it now itself in my first post...


I apologize from all Sri Lankans for the said mistake....!

RIO,

Although NAV like band is not possible or not practical,

I am very much impressed about your thinking.
In few years of time we can see the results.
I think your suggestion of % holding is possible and a must.

I feel this could be a planned approach by the interested parties. During last year they sold and took the money away. Now they have the opportunity to grab valuable property spending very much lesser dollars. If so they will try to put this further down.

මගේ යාලුවෙක් ඉන්නවා . පිටරට වැඩ කරන්නේ. Constriction field එකේ තද පොරක්. . ඌට මාර්තු වල year end බෝනස් එක විතරක් ලැබුන 4 million රුපියල් .
මම කිව්වා නිකන් ලැබුන සල්ලිනෙ. මෙහෙ බඩු සෙල් එකේ දාල තියෙනවා ගන්න කියල. කොහෙද අපේ යක්කු ගන්නේ නැහැ.

RIO wrote:

Whitebull wrote:
.................................I can not agree with ur one word which is civil war....I think better word is war against terrorism.

Oh God, had great mistake...thank you for pointing out, Yes we SL never had a civil war...its only a cause of Separatist Terrorism...
I'll correct it now itself in my first post...


I apologize from all Sri Lankans for the said mistake....!

Total mad apologise.
Please read all the statements made by MR or LLRC or anyone in the past, they are claiming the war was civil war.
Do not show patriotism by apologising stupididly.
Read this link which also created by Srilankan scholars.
http://en.wikipedia.org/wiki/Lessons_Learnt_and_Reconciliation_Commission

Civil war (definition): A violent conflict within a country fought by organized groups that aim to take power at the center or in a region, or to change government policies.

But let it be. It's over now. It was a sad chapter in our history.

Let's get back to Sri Lankan equity...

Antonym wrote:Civil war (definition): A violent conflict within a country fought by organized groups that aim to take power at the center or in a region, or to change government policies.

But let it be. It's over now. It was a sad chapter in our history.

Let's get back to Sri Lankan equity...

Thanks for the clarification.

Redbulls wrote:

RIO wrote:

Whitebull wrote:
.................................I can not agree with ur one word which is civil war....I think better word is war against terrorism.

Oh God, had great mistake...thank you for pointing out, Yes we SL never had a civil war...its only a cause of Separatist Terrorism...
I'll correct it now itself in my first post...


I apologize from all Sri Lankans for the said mistake....!

Total mad apologise.
Please read all the statements made by MR or LLRC or anyone in the past, they are claiming the war was civil war.
Do not show patriotism by apologising stupididly.
Read this link which also created by Srilankan scholars.
http://en.wikipedia.org/wiki/Lessons_Learnt_and_Reconciliation_Commission

අද බටහිරයන් මූලික වශයෙන් ඉල්ලන්නේ උගත් පාඩම් කොමිසමේ වාර්තාව ක්‍රියාත්මක කරන ලෙස ය. පත් නොකළ යුතුව තිබූ උගත් පාඩම් කොමිසම ප්‍රශ්නයට අවතීර්ණ වී ඇත්තේ මෙරට දෙමළ ජනයාට ප්‍රශ්නයක්‌ ඇත යනුවෙන් කීමෙනි. මේ කොමිසම ඉදිරියේ ඔවුන්ගේ ආරාධනයෙන් මා සාක්‍ෂි දුන් අවස්‌ථාවේ මෙහි ජනවාර්ගික ප්‍රශ්නයක්‌ නැති බව මම තර්කානුකූලව හා සාක්‍ෂි සහිතව පෙන්වා දුන්නෙමි. මගේ සාක්‍ෂියෙන් පසු එක්‌ කොමසාරිස්‌වරයකු පැවසුවේ මගේ ඉදිරිපත් කිරීම තර්කානුකූල වුවත්, ඔවුන්ට (දෙමළ වෙල්ලායන්ට හා ඔවුන් පසුපස සිටින බටහිරයන්ට) යමක්‌ දිය යුතු බව ය. පැහැදිලිව ම බටහිරයන්ගේ අධ්‍යාපනයක්‌ ලැබූ කොමිසමේ මහත්ම මහත්මීන් ඉංගිරිසින් උගන්වා ඇති ජනවාර්ගික ප්‍රශ්නයක්‌ ඇතැයි යන පූර්ව නිගමනයේ පිහිටි බව පැහැදිලි ය.

http://www.divaina.com/2012/03/25/nalin.html

I do not have an english version of this article.

The otherthing is we have to remember this is a public forum and we should respect all the members eventhough their idea is not tally with us .I do not think anyone is stupid here.

So with all due respect sir(Redbulls) I think you should mind ur language before insulting another member.

Whitebull wrote:

Redbulls wrote:

RIO wrote:

Whitebull wrote:
.................................I can not agree with ur one word which is civil war....I think better word is war against terrorism.

Oh God, had great mistake...thank you for pointing out, Yes we SL never had a civil war...its only a cause of Separatist Terrorism...
I'll correct it now itself in my first post...


I apologize from all Sri Lankans for the said mistake....!

Total mad apologise.
Please read all the statements made by MR or LLRC or anyone in the past, they are claiming the war was civil war.
Do not show patriotism by apologising stupididly.
Read this link which also created by Srilankan scholars.
http://en.wikipedia.org/wiki/Lessons_Learnt_and_Reconciliation_Commission

අද බටහිරයන් මූලික වශයෙන් ඉල්ලන්නේ උගත් පාඩම් කොමිසමේ වාර්තාව ක්‍රියාත්මක කරන ලෙස ය. පත් නොකළ යුතුව තිබූ උගත් පාඩම් කොමිසම ප්‍රශ්නයට අවතීර්ණ වී ඇත්තේ මෙරට දෙමළ ජනයාට ප්‍රශ්නයක්‌ ඇත යනුවෙන් කීමෙනි. මේ කොමිසම ඉදිරියේ ඔවුන්ගේ ආරාධනයෙන් මා සාක්‍ෂි දුන් අවස්‌ථාවේ මෙහි ජනවාර්ගික ප්‍රශ්නයක්‌ නැති බව මම තර්කානුකූලව හා සාක්‍ෂි සහිතව පෙන්වා දුන්නෙමි. මගේ සාක්‍ෂියෙන් පසු එක්‌ කොමසාරිස්‌වරයකු පැවසුවේ මගේ ඉදිරිපත් කිරීම තර්කානුකූල වුවත්, ඔවුන්ට (දෙමළ වෙල්ලායන්ට හා ඔවුන් පසුපස සිටින බටහිරයන්ට) යමක්‌ දිය යුතු බව ය. පැහැදිලිව ම බටහිරයන්ගේ අධ්‍යාපනයක්‌ ලැබූ කොමිසමේ මහත්ම මහත්මීන් ඉංගිරිසින් උගන්වා ඇති ජනවාර්ගික ප්‍රශ්නයක්‌ ඇතැයි යන පූර්ව නිගමනයේ පිහිටි බව පැහැදිලි ය.

http://www.divaina.com/2012/03/25/nalin.html

I do not have an english version of this article.

The otherthing is we have to remember this is a public forum and we should respect all the members eventhough their idea is not tally with us .I do not think anyone is stupid here.

So with all due respect sir(Redbulls) I think you should mind ur language before insulting another member.

This is not an insult, if you read carefully.
I mind my language very well, if some one in the public forum wants to misinterpret the fact,how you will response?
I'm not saying the poster is stupid the comment is stupid.
Logically I'm correct and if you want I can argue and prolong the discussion to any extend.
Do we need that in this forum?
Shall we stop at this moment and concentrate on trading or investing?

Redbulls wrote:I mind my language very well, if some one in the public forum wants to misinterpret the fact,how you will response?

Before ends this I have to answer ur question.

In my opinion there is no violation of any fact.Even there is a violation of fact I will not insult commenter or the comment.I will argue in a polite passion with valid sensible arguments and I will not be emotional.Hope I answered to ur question.

Although free flow is what required in a stock market I also feel that some mechanism should be available to protect the valuable (fundamentally trong) companies.
The approach should not count manipulated shares but companies with strong financial results and the ones which are striving to improve..

The absurd pricing we see now only can be achieved on an extreme bear situation (unless a company is winding up) and ppl who had invested for the sole purpose expecting future prospects and who dont look much into their portfolios regularly might be in great despair without a clear picture as to how they could see a bright future for their investments..

If one buys a counter ard 80 and it went up to 100 but he was looking to sell higher and he didnt sell it and unfortunately today's value of it is 50-60, could be in a real dillema what to do now..

Whitebull wrote:

Redbulls wrote:I mind my language very well, if some one in the public forum wants to misinterpret the fact,how you will response?

Before ends this I have to answer ur question.

In my opinion there is no violation of any fact.Even there is a violation of fact I will not insult commenter or the comment.I will argue in a polite passion with valid sensible arguments and I will not be emotional.Hope I answered to ur question.

Guys no further arguments necesary.. We have to stick to the topic of this post..

stumpy wrote:Rio,
This is the first time I'm seeing something unusual or not practical from ya!
machang,
Anyone should not impose rules n regulations or policies which can affect the free flow (free movement) of the markets!
That's what I believe!

Supply n Demand has to decide the prices...not any other thing!

I am not suprised, coming from TA