03-09-2022, 01:58 PM
Over the years, there have been a no. of discussions(including in this forum) regarding retail shareholders’ interest with regards to corporate actions e.g. privatization offers, suspensions. It shows (a) there isn’t much minority shareholders can do; (b) OPMI are dispersed; (c ) the rarity of large activist shareholders (e.g. fund manager). It will not be a surprise if the great sage himself had already known OPMI issues and perhaps explain why it was mentioned in WB related books that he prefers to buy entire companies so that he has control of capital allocation.
Under the existing circumstances, I wonder if there is a way for retail shareholders to help ourselves ? If not, history will just keep repeating itself ….
Drawing inspiration from Straits Trading shareholder group / Best World telegram chat group, I was thinking whether it would be beneficial to bring together serious committed shareholders of the same stock. Specifically, forming a focus group of long term dedicated shareholders(ideally who are already/ready to invest a significant amt of time – not just a chit chat group), e.g. Top 20 shareholders or shareholders with a substantial amount of net worth in the particular stock, e.g. TTJ* shareholders club, Dutech Holdings* shareholders club etc.
(*stock delisted, for illustration purposes only)
Other than leveraging on each group member’s strengths to maximize effectiveness and resources for efficiency, the purpose/advantages of such a group include : (a) uniting OPMI during corporate actions when necessary (b) hopefully collectively own close to 10% shareholding to be eligible to call EGM if necessary; (c ) meet up quarterly/half-yearly to discuss company financial results/developments ; (d) request to participate in analysts’ earnings calls (e) organize company site visits(local/overseas offices) ; (f) suggest improvements to the business, etc ……
To be clear, the objective is to work alongside mgmt & contribute positively to benefit both parties(controlling + OPMI) rather than against one another. It is most effective when OPMI has an intricate understanding of the business. However, I think (a) this approach may be more applicable to small-cap stocks (b) the main challenge would be to find like-minded shareholders all holding significant interests in that particular same stock.
If such an arrangement proves to be successful, I believe there's a lot more development potential, e.g. other co-investment opportunities.
Would be most grateful to tap on the wisdom and extensive investing experience of buddies for comments on my ideas below, e.g. were my ideas already tried earlier by some but failed or is it just plain dreamybear's dreaming(i.e. unfeasible) or is there a better suggestion ….
Interested buddies who have already been thinking along similar lines, pls feel free to PM me, maybe we can work something out.
--------------------------------------
Straits Trading
https://shareholdersclub.sg/
Forum: Time to set up Ombudsman Office to seek recourse for aggrieved investors
https://www.straitstimes.com/opinion/for...-investors
“….More importantly, how will the aggrieved investors seek recourse, especially the retail investors, who have neither the resources nor legal expertise to do so? Thousands of investors have lost substantial amounts of money and some even their life savings, and are suffering in silence.…….
It is now more critical than ever for the MAS to institute processes or set up an Ombudsman Office with some urgency to hear investor grievances and seek recourse for aggrieved investors. There are many other companies listed in the Singapore Exchange that have been suspended and under investigation for a long time, with no indication of when investigations will be concluded. Meanwhile, the investors are waiting patiently for the outcome of these investigations and whether they will be able to recoup at least some of their money…..”
Pangolin fund says it's close to getting 10% of votes to block Challenger exit offer
https://www.businesstimes.com.sg/technol...exit-offer
Under the existing circumstances, I wonder if there is a way for retail shareholders to help ourselves ? If not, history will just keep repeating itself ….
Drawing inspiration from Straits Trading shareholder group / Best World telegram chat group, I was thinking whether it would be beneficial to bring together serious committed shareholders of the same stock. Specifically, forming a focus group of long term dedicated shareholders(ideally who are already/ready to invest a significant amt of time – not just a chit chat group), e.g. Top 20 shareholders or shareholders with a substantial amount of net worth in the particular stock, e.g. TTJ* shareholders club, Dutech Holdings* shareholders club etc.
(*stock delisted, for illustration purposes only)
Other than leveraging on each group member’s strengths to maximize effectiveness and resources for efficiency, the purpose/advantages of such a group include : (a) uniting OPMI during corporate actions when necessary (b) hopefully collectively own close to 10% shareholding to be eligible to call EGM if necessary; (c ) meet up quarterly/half-yearly to discuss company financial results/developments ; (d) request to participate in analysts’ earnings calls (e) organize company site visits(local/overseas offices) ; (f) suggest improvements to the business, etc ……
To be clear, the objective is to work alongside mgmt & contribute positively to benefit both parties(controlling + OPMI) rather than against one another. It is most effective when OPMI has an intricate understanding of the business. However, I think (a) this approach may be more applicable to small-cap stocks (b) the main challenge would be to find like-minded shareholders all holding significant interests in that particular same stock.
If such an arrangement proves to be successful, I believe there's a lot more development potential, e.g. other co-investment opportunities.
Would be most grateful to tap on the wisdom and extensive investing experience of buddies for comments on my ideas below, e.g. were my ideas already tried earlier by some but failed or is it just plain dreamybear's dreaming(i.e. unfeasible) or is there a better suggestion ….
Interested buddies who have already been thinking along similar lines, pls feel free to PM me, maybe we can work something out.
--------------------------------------
Straits Trading
https://shareholdersclub.sg/
Forum: Time to set up Ombudsman Office to seek recourse for aggrieved investors
https://www.straitstimes.com/opinion/for...-investors
“….More importantly, how will the aggrieved investors seek recourse, especially the retail investors, who have neither the resources nor legal expertise to do so? Thousands of investors have lost substantial amounts of money and some even their life savings, and are suffering in silence.…….
It is now more critical than ever for the MAS to institute processes or set up an Ombudsman Office with some urgency to hear investor grievances and seek recourse for aggrieved investors. There are many other companies listed in the Singapore Exchange that have been suspended and under investigation for a long time, with no indication of when investigations will be concluded. Meanwhile, the investors are waiting patiently for the outcome of these investigations and whether they will be able to recoup at least some of their money…..”
Pangolin fund says it's close to getting 10% of votes to block Challenger exit offer
https://www.businesstimes.com.sg/technol...exit-offer