Penguin International

[karlmarx]

In a stock market that is badly neglected by the people in charge, even very good stocks get hammered.

There is a major shortage of buyers in the SGX. Critical assessment of any stocks can lead to significant losses and exodus of even long time faithful shareholders.

So as I observe, most critical and negative talks of stocks, whether rightly or wrongly, can often lead to further erosion of investors interest and fall in stock price. Most negative reports end up looking really smart and prescient.

I dont think there is a perfect stock per se in any stock market. By definition, if a stock is so damn perfect, it will lead to investors flocking in, and causing it to be not so perfect from valuation point of view.

It is relatively easy to bring down even very good stocks in the SGX. Unless there are more investors coming in than going out, investors will surely continue to suffer here. SGX is like a black hole, money gone in gets sucked in, for a long long time.

I think you may have overestimated the influence of negative reports.

Over the short term, a positive/negative report can have some effect on a stock's price.

But over the long term, such reports have little effect on the stock's price. Most stocks perform poorly because their businesses perform poorly. Have a look at stocks with increasing dividends, and compare them against those with decreasing dividends.

So if SGX as a whole is performing poorly, could it not be due to an over-representation of poor-quality companies on SGX?