02-11-2013, 11:16 AM
(01-11-2013, 05:34 PM)Clement Wrote: I think the real problem was that SGX was very late in attempting deflate the bubble.
Looking at Blumont's price trend chart from Yahoo Finance, the ascent started in ~ Jun2012:
- Jun2012: 2.5cents
- Sept2012: 8-9cents
- Dec2012: 20cents
- March2013: 40-60cents
- Jun2013: 1.10-1.20sgd
- Sept2013: above 2sgd
The stock grew 10x in the first 6 months, followed by another 10x in the next 9 months, with the latter having the highest absolute gains. A SGX query was only made on Sept 18th, when its price was OBVIOUSLY in bubbly levels.
On hindsight, based on price gains alone, should SGX have started to query it earlier in March or June? If yes, would the market (with its amount of information AT THAT TIME) cried foul and stated that SGX was trying to God by choosing the winners/losers?
Unless the market watchers were sleeping on the job, i can only guess that the market manipulators have done their homework and planned long for this - They understood the algorithms that the watchers/regulators were using and primed their game plan to go undetected by the radar. As the chinese saying: 道高一尺,魔高一丈 or我在明,敌人在暗.
Nonetheless, this is a good learning lesson for SGX. If it wants to attract the retail crowd and also maintain its reputation and trust, it needs to do better or even learn to anticipate new tricks that manipulators will attempt in future.