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31-10-2013, 12:46 PM
(This post was last modified: 31-10-2013, 01:00 PM by specuvestor.)
I went to recheck the facts: There was a suspension before the fall by Blumont to announce the placement of shares for the acquisition. After it fell to $0.88 (-56%) in 45min it was suspended by SGX. And 2 days later when relisted it fell to $0.13 (-85%)
I was indeed confused by the sequence of the suspensions, thanks for alerting and I agree the decline is not orderly in that 45min. And I now understand whether the stock would go to $0.13 that single day instead of $0.88 without the suspension is debatable. But I think the need for circuit breaker and "designated stock" before suspension is still valid.
How it is done in other exchanges could be 10% drop halt trading for 1 or 2 hours. 20% drop halt for rest of the day. Can be a designated stock the next day. Reverse is true when stock surged. Difference is most probably will be a designated stock the next day to remove the froth.
I was indeed confused by the sequence of the suspensions, thanks for alerting and I agree the decline is not orderly in that 45min. And I now understand whether the stock would go to $0.13 that single day instead of $0.88 without the suspension is debatable. But I think the need for circuit breaker and "designated stock" before suspension is still valid.
How it is done in other exchanges could be 10% drop halt trading for 1 or 2 hours. 20% drop halt for rest of the day. Can be a designated stock the next day. Reverse is true when stock surged. Difference is most probably will be a designated stock the next day to remove the froth.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)