Massive forced selling by margin traders

Monster · 1 Massive forced selling by margin traders Thu Jun 16, 2011 5:50 pm

Monster

Senior Vice President - Equity Analytics

Posts : 1708
Equity Stars : 8163
Reputation : 279
Join date : 2011-01-22

Just look at the article by lbo today.

http://www.lbo.lk/fullstory.php?nid=771118604

As per the article, the reason for the massive drop in the market is due to force selling. Did any got this message from your broker.

swan03 · 2 Re: Massive forced selling by margin traders Thu Jun 16, 2011 5:55 pm

swan03

Vice President - Equity Analytics

Posts : 1241
Equity Stars : 6709
Reputation : 84
Join date : 2011-01-31

It says "The poor performance of Expolanka will teach those who run after IPO’s a bitter lesson," Capital Trust Stockbrokers said in a research note.

Does this mean not to go after Vallibal one as well?

wis · 3 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:00 pm

wis

Manager - Equity Analytics

Posts : 253
Equity Stars : 5231
Reputation : 103
Join date : 2011-02-01

I think in Australia they were also force selling today. Smile

They have also broke some barrier and plummeted.

http://au.finance.yahoo.com/news/Aussie-market-big-slide-abc-743391939.html?x=0

StocksWatch · 4 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:39 pm

StocksWatch

Assistant Vice President - Equity Analytics

Posts : 720
Equity Stars : 5801
Reputation : 186
Join date : 2011-02-12

swan03 wrote:It says "The poor performance of Expolanka will teach those who run after IPO’s a bitter lesson," Capital Trust Stockbrokers said in a research note.

Does this mean not to go after Vallibal one as well?

I don't think Expolanka experience should prevent investors going for IPO's in the future.

But this will force people to think twice before applying for forthcoming IPO's. There was a time when people believed investing in IPO's is almost zero risk as almost all IPO's easily recorded more than 10% gain on the first day of trading iteself, some actaully recorded exceptional gains over 25%.

I think from now on investors will seriously start analysing facts to verify if any IPO is worth investing at the price offered by the company. Expolanka IPO was obviously overpriced at Rs. 14 and now the investors are paying the price for subcribing to such an overpriced IPO.

So in summary IPO's are not bad, you need to take them case by case and decide if it is worth investing on a given IPO at the price offered. If you believe you can buy cheaper from the secondary market (as in the case of Expo), why you should block your money with the IPO for couple of months and then take the loss.

Rstock · 5 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:41 pm

Rstock

Senior Equity Analytic

Posts : 51
Equity Stars : 4819
Reputation : 3
Join date : 2011-04-27

What is forced selling?

Pira · 6 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:43 pm

Pira

Equity Analytic

Posts : 44
Equity Stars : 4860
Reputation : 1
Join date : 2011-03-10

I've get the information from my brocker that asia securities had today force selling, also big clients were on the list, he told

wis · 7 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:46 pm

wis

Manager - Equity Analytics

Posts : 253
Equity Stars : 5231
Reputation : 103
Join date : 2011-02-01

Pira wrote:I've get the information from my brocker that asia securities had today force selling, also big clients were on the list, he told

I think I've read the same thing about last Tuesday.

Pira · 8 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:52 pm

Pira

Equity Analytic

Posts : 44
Equity Stars : 4860
Reputation : 1
Join date : 2011-03-10

wis wrote:

Pira wrote:I've get the information from my brocker that asia securities had today force selling, also big clients were on the list, he told

I think I've read the same thing about last Tuesday.

but not from me

Antonym · 9 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:11 pm

Antonym

Vice President - Equity Analytics

Posts : 1090
Equity Stars : 7430
Reputation : 275
Join date : 2011-02-09

If it is any consolation, most stock markets in the world declined today. Only Brazil and Israel bucked the trend...

http://money.rediff.com/indices/world

tubal · 10 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:14 pm

tubal

Vice President - Equity Analytics

Posts : 1047
Equity Stars : 6261
Reputation : 243
Join date : 2011-01-27

Forced selling Bullshit!! I have never met anyone who has had his portfolio force sold, have you?

xhora · 11 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:21 pm

xhora

Senior Manager - Equity Analytics

Posts : 498
Equity Stars : 5382
Reputation : 70
Join date : 2011-04-24
Age : 35
Location : Colombo

Antonym wrote:If it is any consolation, most stock markets in the world declined today. Only Brazil and Israel bucked the trend...

http://money.rediff.com/indices/world

Since when the BEST stock exchange in the world followed the rest
jocolor

Sampath.Jayawardhana · 12 Re: Massive forced selling by margin traders Thu Jun 16, 2011 9:32 pm

Sampath.Jayawardhana

Stock Analytic

Posts : 15
Equity Stars : 4751
Reputation : -1
Join date : 2011-05-01

I can't understand why this so called forced selling has surfaced. Was it not there in the past?

wiki · 13 Re: Massive forced selling by margin traders Thu Jun 16, 2011 9:54 pm

wiki

Assistant Vice President - Equity Analytics

Posts : 687
Equity Stars : 5684
Reputation : 41
Join date : 2011-02-03
Location : Colombo

tubal wrote:Forced selling Bullshit!! I have never met anyone who has had his portfolio force sold, have you?

need some explanation for the down turn. that is why this forced selling thing has come in to picture again

Aamiable · 14 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:05 pm

Aamiable

Vice President - Equity Analytics

Posts : 1284
Equity Stars : 6267
Reputation : 176
Join date : 2011-02-21

Sampath.Jayawardhana wrote:I can't understand why this so called forced selling has surfaced. Was it not there in the past?

Even if there is no force selling, they must be requesting to settle, I do not think it is such a serious issue like in the past, as there were some relaxations. ...

Most of the firms do not have much to settle. ...When I asked, they said every thing would return to normal next week. I think this is a temporary issue.
Smile

Rajitha · 15 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:09 pm

Rajitha

Assistant Vice President - Equity Analytics

Posts : 793
Equity Stars : 6777
Reputation : 57
Join date : 2011-01-27

This is the same thing a forum full of idiots posted sometime back! This is the thing I said then,
lol!

Last edited by Rajitha on Fri Jun 17, 2011 10:01 pm; edited 1 time in total

Gaja · 16 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:17 pm

Gaja

Associate Director - Equity Analytics

Posts : 3127
Equity Stars : 9662
Reputation : 260
Join date : 2011-01-27
Age : 40
Location : Colombo

well this is what some brokers told me, but i could verify it, most of the retailers bought huge quantities of of selected stocks last week on the T + 5 basis, now most of them failed to settle, which lead for the force sales

tubal · 17 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:20 pm

tubal

Vice President - Equity Analytics

Posts : 1047
Equity Stars : 6261
Reputation : 243
Join date : 2011-01-27

Rajitha wrote:This is the same thing a forum full of idiots posted something like this !!

As my old enemy Rajitha has pointed out. Every broker is saying that other brokers are forced selling but has it ever actually happened? Again as Wiki says this is being repeated over and over again ad nauseum as an excuse for the market decline.

I have only read two posts ever in this forum where someone actually said some of his portfolio was force sold. BUt there have been thousands of posts saying 'brokers are force selling.'. It's just bullshit.

Oh BTW, rajitha your -rep sure as hell isn't from me (but I must admit to having given you a few in the past Twisted Evil

)

Aamiable · 18 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:22 pm

Aamiable

Vice President - Equity Analytics

Posts : 1284
Equity Stars : 6267
Reputation : 176
Join date : 2011-02-21

They must be politely requesting to settle T5. Every day they ask to settle.

rajithasamaranayake · 19 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:00 pm

rajithasamaranayake

Equity Analytic

Posts : 37
Equity Stars : 4733
Reputation : 4
Join date : 2011-06-15

One cannot hold on to his/her shares in the margin trading accounts indefinitely. You've got to settle your dues to Margin Traders. Obviously Margin Trade facilitators must be a worried lot..running out of patience with no signs of recovery. Our PER is still around 24 which is very high by any standard. Aitken Spence, JKH, Carsons, Aitken Spence Hotels, Cargills are still trading at higher prices compared to their earnings. To add to the woos penny stocks such as GREG, REEF, PAP, CLPL, DANKOTUWA, BLUE, DUNAMIS created or are creating havoc in the market. If I was providing margin trading facilities, I too would probably be reluctantly compelled to force sell to minimise losses

Chinwi · 20 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:11 pm

Chinwi

Associate Director - Equity Analytics

Posts : 3097
Equity Stars : 8941
Reputation : 418
Join date : 2010-06-08
Location : Asia

IPO

Many years ago, Initial Public Offerings gave newcomers a good platform to enter into the stock market.

Because of IPOs the ordinary people earned much needed money to play in the market with no fear of loosing their hard earned money.

( Hard earned money = cash you earned by working )

I can remember NDB was offered @ 50 and all the applicants got 500 shares. Due to its real value, at secondary market it traded @ 250 and later 275, 300.

All the people invested 25,000 got a profit of 100,000.00, instantly became "lakhapathi". 20 Years ago 1 lak was a big thing.

Most newcomers, youth, empowered with 1 lak, invested in other IPOs and stocks with much better power to build their portfolios.

Now a days these ugly people distribute all the wealth among them and use IPOs to trap our hard earned money to pay back their debt.

jaya · 21 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:15 pm

jaya

Assistant Vice President - Equity Analytics

Posts : 647
Equity Stars : 5791
Reputation : 11
Join date : 2011-01-25

swan03 wrote:It says "The poor performance of Expolanka will teach those who run after IPO’s a bitter lesson," Capital Trust Stockbrokers said in a research note.

Does this mean not to go after Vallibal one as well?

We are welcome IPO from “ SARAVITA” sellers, “ DUVANAGIRI” saruvath sellers (soft drink sellers near the school gate) Banana traders at side of the main road and “ KOTHU ROTTI” traders. they have a rights to go to the CSE and find fresh capital most important thing is that so called REGULATORS shall have to monitor the IPO before allow it. Also the fairness of price before victimized the innocent retailers who paid life long savings.

Expo situation has been discussed this forum several times, thanks to forum many of members escape, but most IPO buyers are limited access to inter net.
Who will be responsible and protector of such poor investors (as our regulators wants to increase number of entities in the board and .......)

seyon · 22 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:20 pm

seyon

Assistant Vice President - Equity Analytics

Posts : 783
Equity Stars : 5839
Reputation : 119
Join date : 2011-02-01
Location : Colombo

Chinwi wrote:IPO

I can remember NDB was offered @ 50 and all the applicants got 500 shares. Due to its real value, at secondary market it traded @ 250 and later 275, 300.

Yes true Ciniwi, the those days IPO were offered at real value. Now, Managers to offer and Advisors talking bullshit Forwarded PE ratio and Value the shares based on unexpected future earnings. Look at EXPO and Softlogic assets value with IPO prices PBV are in the range of 5X-10times.

I do not know about process of SEC approval on pricing. They must have to look the pricing of IPO.

mono · 23 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:42 pm

mono

Vice President - Equity Analytics

Posts : 1167
Equity Stars : 6273
Reputation : 93
Join date : 2011-01-21
Age : 102

seyon wrote:

Chinwi wrote:IPO

I can remember NDB was offered @ 50 and all the applicants got 500 shares. Due to its real value, at secondary market it traded @ 250 and later 275, 300.

Yes true Ciniwi, the those days IPO were offered at real value. Now, Managers to offer and Advisors talking bullshit Forwarded PE ratio and Value the shares based on unexpected future earnings. Look at EXPO and Softlogic assets value with IPO prices PBV are in the range of 5X-10times.

I do not know about process of SEC approval on pricing. They must have to look the pricing of IPO.

this is entirely the fault of our 'supiri traders'. in the recent past IPO were hitting the market at exorbitant prices. SINS was offered at 15 i believe, with a PE at 10. on the first day of trading it hit 50, i think. So if i were a bussinessmen going for an IPO why on earth would i offer an IPO at low PE's. EXPO people are effectively selling a stake of thier company to the public. why on earth should they sell it for anything less than the premium. at least that's what my bussiness sense tells me.

duke · 24 Re: Massive forced selling by margin traders Fri Jun 17, 2011 8:18 am

duke

Senior Manager - Equity Analytics

Posts : 552
Equity Stars : 5506
Reputation : 86
Join date : 2011-03-14

mono wrote:
this is entirely the fault of our 'supiri traders'. in the recent past IPO were hitting the market at exorbitant prices. SINS was offered at 15 i believe, with a PE at 10. on the first day of trading it hit 50, i think. So if i were a bussinessmen going for an IPO why on earth would i offer an IPO at low PE's. EXPO people are effectively selling a stake of thier company to the public. why on earth should they sell it for anything less than the premium. at least that's what my bussiness sense tells me.

It may be more than premium. But it can't be 2X, 3X times of the price that was offered to selected parties.

limestone · 25 Re: Massive forced selling by margin traders Fri Jun 17, 2011 11:42 am

limestone

Manager - Equity Analytics

Posts : 120
Equity Stars : 4971
Reputation : 11
Join date : 2011-02-03

" So if i were a bussinessmen going for an IPO why on earth would i offer an IPO at low PE's. EXPO people are effectively selling a stake of thier company to the public. why on earth should they sell it for anything less than the premium. at least that's what my bussiness sense tells me"

GOOD POINT

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Massive forced selling by margin traders

1 Massive forced selling by margin traders Thu Jun 16, 2011 5:50 pm

Monster

2 Re: Massive forced selling by margin traders Thu Jun 16, 2011 5:55 pm

swan03

3 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:00 pm

wis

4 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:39 pm

StocksWatch

5 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:41 pm

Rstock

6 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:43 pm

Pira

7 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:46 pm

wis

8 Re: Massive forced selling by margin traders Thu Jun 16, 2011 6:52 pm

Pira

9 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:11 pm

Antonym

10 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:14 pm

tubal

11 Re: Massive forced selling by margin traders Thu Jun 16, 2011 7:21 pm

xhora

12 Re: Massive forced selling by margin traders Thu Jun 16, 2011 9:32 pm

Sampath.Jayawardhana

13 Re: Massive forced selling by margin traders Thu Jun 16, 2011 9:54 pm

wiki

14 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:05 pm

Aamiable

15 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:09 pm

Rajitha

16 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:17 pm

Gaja

17 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:20 pm

tubal

18 Re: Massive forced selling by margin traders Thu Jun 16, 2011 10:22 pm

Aamiable

19 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:00 pm

rajithasamaranayake

20 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:11 pm

Chinwi

21 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:15 pm

jaya

22 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:20 pm

seyon

23 Re: Massive forced selling by margin traders Thu Jun 16, 2011 11:42 pm

mono

24 Re: Massive forced selling by margin traders Fri Jun 17, 2011 8:18 am

duke

25 Re: Massive forced selling by margin traders Fri Jun 17, 2011 11:42 am

limestone

26 Re: Massive forced selling by margin traders

Sponsored content

New topics