Aspellian's Garden

[Aspellian]

Your garden became a gathering place for all of us liao..

Funny la

ALL are welcome!

just remember to take off your shoes before stepping onto the newly mowed lawn!

[Aspellian]

Genting
- there was a moment of opportunity to short Genting during the intraday high of $1.18 (today)
- most brokers are downgrading the stocks
- market will continue to be weaken
- so how can Genting go against the tide when it is a loss-making company???
- think if Genting doesnt meet analysts expectation after 1Q or 2Q of operations, it may be a sayonara to its lofty valuations.... (i think - trying to think more)

(but then, who knows, Genting probably can pull off a miracle?)
(now more expats will love to work in SPore or station their HQ here - more fun and vibrant because of the IRs!!!)

anyway, i missed that window and dare not short at $1.13... watch and see... reminding myself not to be greedy and get carried away. find my bearing...

[winston]

I make it a point never to short big companies who have a lot of cash.

They can make life very miserable for the shorts.

[kennynah]

Your garden became a gathering place for all of us liao..

that's really good... a place to smell the roses... kick back sitting on the bench and watch the birds and bees fly by....

[Aspellian]

I make it a point never to short big companies who have a lot of cash.

They can make life very miserable for the shorts.

Hi Winston,

are you talking specifically about Genting or in general?

But how can the big companies make the shorts miserable? do you mean through share buy-backs?

THanks in advance for clarifying.

[winston]

Yes, I was talking about Genting. They have a lot of cash so they can do Buybacks etc. The family can also increase their stake in the company.

[kennynah]

generally speaking....when the market cap is not too demanding and illiquid in transaction volume... it can be (not that it is) highly manipulatable ...hence the danger with many Asian counters...

if i cite this example, it might nail the point across...try cornering GOOG shares... i think no one single person or group can even move GOOG's price a notch without some collective effort...

[Aspellian]

Yes, I was talking about Genting. They have a lot of cash so they can do Buybacks etc. The family can also increase their stake in the company.

Thanks for clarifying. Will definitely keep this in mind.
But i have this impression that Asian companies dun like to do sharebuybacks. or its difficult for them to execute it as a strategy to support share price. Especially in "uncertain times" like this, most companies will much prefer to be in survival mode.

For companies that are in need for working capital, especially with high capex or likely negative operating cashflows for starting up operations (eg. new casinos), logically they should allocate more to cash on hand (management of cashflows) instead of buying back shares. Swiber learnt it the hard way when it was buying back its on shares when market in correction mode... until they realise its not sustainable... and that they need cash for their NWC.

just a thought.

[Musicwhiz]

I noted Ezra also did a buyback at $2.12 just last week. If I recall correctly it also bought back at $2.50 back during 2007/2008 time.

Weird that companies choose not to buyback shares when prices are much lower......

[millionairemind]

I noted Ezra also did a buyback at $2.12 just last week. If I recall correctly it also bought back at $2.50 back during 2007/2008 time.

Weird that companies choose not to buyback shares when prices are much lower......

I remember some FA guy was commenting that shares buyback is good... but the timing of it is important. Share buybacks just deplete the company of cash, cash that could be better deployed to further their expansion, if they have such a plan in the first place.

I remember Sino Env had a whole bunch of share buybacks at $2+.... now its suspended

Share buybacks don't mean a hoot in the market. Its not the director or CEO's money anyway...

If I see CEOs buying ALOT of their shares, then its a different story altogether