Massive forced selling by margin traders

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?

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.

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.

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.

Chinwi wrote:I was in a broker's place they were reducing buying power of some clients. I asked why whats happen ?

"Last few days we had to sell many unpaid shares to recover the money. ... .. Some are not paying properly for what they bought, so we disabled their online buying."

Me: Why is this new situation?
She said,

"Pahugiya dawas wala mei wedak nethi kehel mal passe duwala me moda minissu amaruwe wetuna. " samaharu honda ewa wikunala wedak nethi ewa loku ganan walata aragena den thibuna ekath ne.
Samaharu XXXX wage boruwata naggapu ewa aragena ewata gewanna YYYY wage honda ewa wikunanawa.

Monster wrote: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.

tubal wrote:

Chinwi wrote:I was in a broker's place they were reducing buying power of some clients. I asked why whats happen ?

"Last few days we had to sell many unpaid shares to recover the money. ... .. Some are not paying properly for what they bought, so we disabled their online buying."

Me: Why is this new situation?
She said,

"Pahugiya dawas wala mei wedak nethi kehel mal passe duwala me moda minissu amaruwe wetuna. " samaharu honda ewa wikunala wedak nethi ewa loku ganan walata aragena den thibuna ekath ne.
Samaharu XXXX wage boruwata naggapu ewa aragena ewata gewanna YYYY wage honda ewa wikunanawa.

disabled online trading but did they force sell?

Chinwi wrote:I was in a broker's place they were reducing buying power of some clients. I asked why whats happen ?

"Last few days we had to sell many unpaid shares to recover the money. ... .. Some are not paying properly for what they bought, so we disabled their online buying."

Me: Why is this new situation?
She said,

"Pahugiya dawas wala mei wedak nethi kehel mal passe duwala me moda minissu amaruwe wetuna. " samaharu honda ewa wikunala wedak nethi ewa loku ganan walata aragena den thibuna ekath ne.
Samaharu XXXX wage boruwata naggapu ewa aragena ewata gewanna YYYY wage honda ewa wikunanawa.

Chinwi wrote:I was in a broker's place they were reducing buying power of some clients. I asked why whats happen ?

"Last few days we had to sell many unpaid shares to recover the money. ... .. Some are not paying properly for what they bought, so we disabled their online buying."

Me: Why is this new situation?
She said,

"Pahugiya dawas wala mei wedak nethi kehel mal passe duwala me moda minissu amaruwe wetuna. " samaharu honda ewa wikunala wedak nethi ewa loku ganan walata aragena den thibuna ekath ne.
Samaharu XXXX wage boruwata naggapu ewa aragena ewata gewanna YYYY wage honda ewa wikunanawa.

Aamiable wrote:

Chinwi wrote:I was in a broker's place they were reducing buying power of some clients. I asked why whats happen ?

"Last few days we had to sell many unpaid shares to recover the money. ... .. Some are not paying properly for what they bought, so we disabled their online buying."

Me: Why is this new situation?
She said,

"Pahugiya dawas wala mei wedak nethi kehel mal passe duwala me moda minissu amaruwe wetuna. " samaharu honda ewa wikunala wedak nethi ewa loku ganan walata aragena den thibuna ekath ne.
Samaharu XXXX wage boruwata naggapu ewa aragena ewata gewanna YYYY wage honda ewa wikunanawa.

Nice to see that …all are very confident today. After a long period of suffering, market is green again. In a green market selling any remaining excessive stocks is very much easier… Market started to pick up from Friday morning, ..actually picked up Thursday afternoon onwards ..that is because these issues have been resolved to a large extent.

Most of the remaining T5 and credit must have been cleared on Friday in a green high turnover market….On a daily basis certain amount of credit remains in a market that is quite normal….Funds extracting for IPO’s seem to be coming to an end. Most of the major IPO subscriptions come to an end next week…

Economy is in good shape. Channel 4 issues looks like an effort made to prevent deportation. No political issues. Trade union issues all solved.

I think there is nothing much to discuss on these issues. There is no major T5 problem. Buying power in some accounts disabled. IPO fever is gradually vanishing off….Political issuers settling down. Foreigners have started to buy again…. It is ideal time to discuss corporate earnings, future prospects and posts related to overall stock market performance instead of these posts and topics.

rajithasamaranayake wrote:yes that's what many IPOs are doing today. Classic example is Expolanka. Their group had to pump more than Rs. 500 Mn to maintain solvency margins for Amana Takaful. If you look at Expolanka books very closely we can figure out from where they borrowed that money. Part of their IPO money will be used to settle that debt. Public should be very careful when they invest in IPOs in future. Dangerous part is these people promote their IPOs abroad using Road shows, etc. When the stock comes to the market and when it performs poorly that will create negative sentiments among foreign investors about our stock market

rajithasamaranayake wrote:yes that's what many IPOs are doing today. Classic example is Expolanka. Their group had to pump more than Rs. 500 Mn to maintain solvency margins for Amana Takaful. If you look at Expolanka books very closely we can figure out from where they borrowed that money. Part of their IPO money will be used to settle that debt. Public should be very careful when they invest in IPOs in future. Dangerous part is these people promote their IPOs abroad using Road shows, etc. When the stock comes to the market and when it performs poorly that will create negative sentiments among foreign investors about our stock market

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?

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

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

stumpy wrote:

rajithasamaranayake wrote:yes that's what many IPOs are doing today. Classic example is Expolanka. Their group had to pump more than Rs. 500 Mn to maintain solvency margins for Amana Takaful. If you look at Expolanka books very closely we can figure out from where they borrowed that money. Part of their IPO money will be used to settle that debt. Public should be very careful when they invest in IPOs in future. Dangerous part is these people promote their IPOs abroad using Road shows, etc. When the stock comes to the market and when it performs poorly that will create negative sentiments among foreign investors about our stock market

ahaaa! now I know the point! I guessed so... even for softlogic !!!


Thank you Rajitha Samaranayake

mark wrote:

stumpy wrote:

rajithasamaranayake wrote:yes that's what many IPOs are doing today. Classic example is Expolanka. Their group had to pump more than Rs. 500 Mn to maintain solvency margins for Amana Takaful. If you look at Expolanka books very closely we can figure out from where they borrowed that money. Part of their IPO money will be used to settle that debt. Public should be very careful when they invest in IPOs in future. Dangerous part is these people promote their IPOs abroad using Road shows, etc. When the stock comes to the market and when it performs poorly that will create negative sentiments among foreign investors about our stock market

ahaaa! now I know the point! I guessed so... even for softlogic !!!


Thank you Rajitha Samaranayake

rep should be given to rajitha samaranayake,but rep was received by the person who thanks can anyone give rep for him,he deserve it