Biosensors   

Is Biosensors a good buy?

Like I said, if one is a long term investor, after lending out his/her shares, it DOES NOT MATTER whether the share price moves up or plunges subsequently (in the short term).

I will not be surprised to learn that major shareholders lend out their shares. It is a common practice as a matter of fact. 

ekekeg      ( Date: 20-Aug-2008 11:55) Posted: Lending is only profitable when substantial amount of your stocks are lent out and the stocks "loaned" out spiked or moved up subsequently.  If one hopes to make money out of lending and thus put money to buy stocks for the purpose, one (he) will be disappointed. Trust me, it is true.

 

The ultimate aim of the so-called fun manager to manage your portfolio, be it unit trust or loaned stocks, is to earn their living via your assets.

There is no specific right or wrong to invest in both the above. But you are the one to be very sure or fully understand the pros and cons of lending your assets to let others to manage for you, esp the tangible and guaranteed profit returned, as mentioned in the Terms n Conditions on the investment services,written in Black n White by the respective investment houses.

You hv to take your own risk if you trust those investment advisors sitting around in the banks and finance coys.

Got to know one frd in kopitiam, a retired teacher, his 50k unit trust vested in a local bank, now worth less than 25k. Ha, laki best, portion of his saving was also surrendered to his Chinese National Wife, who is now staying in China with HER's kid. Sad case.

The moral of the above stories, be vigilant. 

 

Lending is only profitable when substantial amount of your stocks are lent out and the stocks "loaned" out spiked or moved up subsequently.  If one hopes to make money out of lending and thus put money to buy stocks for the purpose, one (he) will be disappointed. Trust me, it is true.

 

If you are long term shareholders who are not bothered by the short term ups and downs of the price, why not lend your shares to earn some pocket money? 

This is the reason for the existence of share lending/borrowing service, which is essentially designed for long term investors. 

ekekeg      ( Date: 20-Aug-2008 09:43) Posted: Hi Novena, They give you in terms of interests (problably 4 percent a year) on the value of the shares others borrowed.  Please note that it is only when any shares are being borrowed that you earn interests and interest calculation stops when they return your shares. If nobody borrows the shares, you get nothing back.  It is not worthwhile at all from my experience. I would be cancelling the opt-in soon.  I find that people who borrow shares tend to choose counters they think worth shorting and they borrow probably for a month or two. The only good thing about lending out is that the shortists tend to buy back hurriedly when there is some spike in the shares. This helps to push up your shares. novena_33      ( Date: 20-Aug-2008 09:32) Posted: so ekekeg............., do they give some some thing back ? as in $ or lower trading fee etc....?

 

Borrowing via SGX is only allowed by institutions or syndicates (being large financial or corporate bodies - this is common knowledge).  As an individual borrower or an individual lender, you need to go through your brokerage firm. Whenever you want to short, you can choose available stocks for the purpose of shorting. Some stocks not available has to be requested.  In order words if you want to short BIG, and there is no available stocks for borrowing instantly, then after your request the broker could search for their source and come back to you whether they have the shares or not to lend you.

As for lending, not all brokers accept your offer to lend them shares. Only a few of them do.  As for transparency you would not be able to know who is borrowing or lending to you.  You deal with your brokerage as in stock trading. Only your account is reflected on the number of shares you have borrowed or "loaned" out.

PensionAlterEgo      ( Date: 20-Aug-2008 10:56) Posted: Thanks ekekeg for enlightening. From what u mentioned, the borrowing is done by the borrower via SGX if you opted for a lending account. And if someone borrowed via SGX, you will be notified. I am assuming that u are registered under some brokerage firm as well. Will your brokerage firm also borrow from your account. And if yes, will they notify you or it's transparent in this case? ekekeg      ( Date: 20-Aug-2008 09:55) Posted: Yeah.  The system is entirely a trap.  We don't know who borrow. It could be large syndicates who have good "guanxi" with our SGX.  You and I would not be able to borrow from SGX.  We can only borrow from our brokers.  So whenever they borrow the price of the borrowed stocks tend to move down. Like at a time when they borrow BIG to short, it was 59 cents, .. now 53 making them a big bundle!!

 

AGREED TOO.

elfinchilde      ( Date: 20-Aug-2008 10:00) Posted: agreed. cashiertan      ( Date: 20-Aug-2008 01:16) Posted: This counter makes money for TA people recently, up and down is almost textbook...    however many ppl will never learn even thou there are ppl to warn them. Well , 90% of the money will always be made by the 10% of the traders.

 

vol is low, think many ppl still at sideline owing to very bad ecnonomy forecast, posted in papers today, esp US credit crunch is not over yet. more writedown is expected, worst speculated bank will run at their heel, soon.

on this note, if BBs were shorting high, then if that comes true, then by pm, you will see sell down action liao. observed this on other counters before. Just AK view, dare not buy any, instead to use 50% rule to clear some blue chips to stock up cash, for next burst of fire.

 

Looks like the show is starting again. Popcorns anyone?

 

Thanks ekekeg for enlightening. From what u mentioned, the borrowing is done by the borrower via SGX if you opted for a lending account. And if someone borrowed via SGX, you will be notified.

I am assuming that u are registered under some brokerage firm as well. Will your brokerage firm also borrow from your account. And if yes, will they notify you or it's transparent in this case?

ekekeg      ( Date: 20-Aug-2008 09:55) Posted: Yeah.  The system is entirely a trap.  We don't know who borrow. It could be large syndicates who have good "guanxi" with our SGX.  You and I would not be able to borrow from SGX.  We can only borrow from our brokers.  So whenever they borrow the price of the borrowed stocks tend to move down. Like at a time when they borrow BIG to short, it was 59 cents, .. now 53 making them a big bundle!!

 

agreed.

cashiertan      ( Date: 20-Aug-2008 01:16) Posted: This counter makes money for TA people recently, up and down is almost textbook...    however many ppl will never learn even thou there are ppl to warn them. Well , 90% of the money will always be made by the 10% of the traders.

 

Yeah.  The system is entirely a trap.  We don't know who borrow. It could be large syndicates who have good "guanxi" with our SGX.  You and I would not be able to borrow from SGX.  We can only borrow from our brokers.  So whenever they borrow the price of the borrowed stocks tend to move down. Like at a time when they borrow BIG to short, it was 59 cents, .. now 53 making them a big bundle!!

 

thanks bro.... i never a shortist..... so...i dont pay much attention to this.... so lending them is like letting them to play against your position

ekekeg      ( Date: 20-Aug-2008 09:43) Posted: Hi Novena, They give you in terms of interests (problably 4 percent a year) on the value of the shares others borrowed.  Please note that it is only when any shares are being borrowed that you earn interests and interest calculation stops when they return your shares. If nobody borrows the shares, you get nothing back.  It is not worthwhile at all from my experience. I would be cancelling the opt-in soon.  I find that people who borrow shares tend to choose counters they think worth shorting and they borrow probably for a month or two. The only good thing about lending out is that the shortists tend to buy back hurriedly when there is some spike in the shares. This helps to push up your shares. novena_33      ( Date: 20-Aug-2008 09:32) Posted: so ekekeg............., do they give some some thing back ? as in $ or lower trading fee etc....?

 

Shocked to even hear that people are shorting even after the merger rumors. Personally I would be sweating if i bet against Biosensors then. Could it be classic pump and dump trick ? That is : spread rumors of merger, get the biosensors fans to shoot it up. Then short.

As per normal, SGX has stepped in and received standard answer of "I dunno"  from management.

 

Hi Novena,

They give you in terms of interests (problably 4 percent a year) on the value of the shares others borrowed.  Please note that it is only when any shares are being borrowed that you earn interests and interest calculation stops when they return your shares. If nobody borrows the shares, you get nothing back.  It is not worthwhile at all from my experience. I would be cancelling the opt-in soon.  I find that people who borrow shares tend to choose counters they think worth shorting and they borrow probably for a month or two.

The only good thing about lending out is that the shortists tend to buy back hurriedly when there is some spike in the shares. This helps to push up your shares.

novena_33      ( Date: 20-Aug-2008 09:32) Posted: so ekekeg............., do they give some some thing back ? as in $ or lower trading fee etc....?

 

so ekekeg............., do they give some some thing back ? as in $ or lower trading fee etc....?

 

Hi PensionAlterEgo,

If you opted for a lending account with CDP, then whenever someone borrows from you, the CDP will send you a notice that a number of shares from a particular counter has been loaned out.  Then they weill deduct from your stock balance.  If you haven't received the notice but found your stock balance lesser than your actual purchase, there will be a "tt" below the statement with the number of shares being borrowed by others.

So in my case, I received  notices that 100 lots of my Biosensor shares, 20 lots of Firstlinks, etc and some other shares have been borrowed.

PensionAlterEgo      ( Date: 19-Aug-2008 16:51) Posted: ekekeg, how do you check your account to see if your share is borrowed? ekekeg      ( Date: 19-Aug-2008 16:15) Posted: Wow wow wow, why is BIG inching down 1 cent after another?  Understand plenty of people borrowed shares to short.  My account was also borrowed quite a bit. People got no shares selling shares.  People got shares die lah! What to do? Any advice?

 

This counter makes money for TA people recently, up and down is almost textbook... 

 

however many ppl will never learn even thou there are ppl to warn them. Well , 90% of the money will always be made by the 10% of the traders.

 

by then, i will shout and buy at 0.48 again.... hee.

limhpp      ( Date: 19-Aug-2008 16:52) Posted: Looks like it is going back to 50c

 

Thanks for the clarification Bengster. I had only thought that the main issue was with Biomatrix approval, not M&A with JWMS. Actually, i am not so much worried about the Biomatrix approval as good objective clinical data will not be subject to much dispute and cuurently the data seems superior in the DES market. However, the M&A with JMWS may be more political in nature as protectionism may manifest itself in the name of "anti-trust" laws. However like you said, JWMS would only benefit from the M&A and I believe this would in turn benefit the Chinese market/people.   

 

Looks like it is going back to 50c