PMB- a lesson for all

CSE Today · 1 PMB- a lesson for all Tue Jun 14, 2011 12:28 pm

CSE Today

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PMB largest crossing was @ 21/- & then with the news of DJ was the buyer it flew to 37~38 range.... NOW trading @ 25.50 ...this is a good lesson for people chasing rumors & rallies...!

& I was wondering how a throw out by LOLC could be so much so worth @ 38 just in few hours, & because the buyer is DJ could it revalued @ 38...?

same fate for PAP & CLND too so at least now people should STOP following these so called HNWI & buy sell on their own valuations/strategies...!

kiwi · 2 Re: PMB- a lesson for all Tue Jun 14, 2011 1:19 pm

kiwi

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@CSE Today, spot on with your observation. If this market is to mature, "investors" - that's just normal retail investors, need to invest and not gamble blindly. Or even worse chase a share simply because XYZ is now a shareholder.

By the way your comment re:LOLC throw out, if you look a bit deeper you will see that LOLC has had a rating downgrade and that has more to do with why they sold the PMB holding - that's just my view.

http://sundaytimes.lk/110306/BusinessTimes/bt12.html

As part of that they need to get cash and get cash reasonably quickly as the rating downgrade impacts their cost of finance. I am picking that LOLC will be selling/disposing more of its holdings in the coming months. Its sort of what retail investors have had to do on a small scale recently. "Double leverage" is serious. I am sort of surprised at the lack of attention the downgrade has had.

themask · 3 Re: PMB- a lesson for all Tue Jun 14, 2011 1:22 pm

themask

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Very true! Someones gonna bleed in the end.(In these cases, very badly!)

smallville · 4 Re: PMB- a lesson for all Tue Jun 14, 2011 3:22 pm

smallville

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However we cannot exactly guess why LOLC moved out, they may have reasons.. and DJ buying it has more reasons to add.. I hope DJ is not the kid who try on another GREG kinda drama Wink

kiwi · 5 Re: PMB- a lesson for all Tue Jun 14, 2011 4:05 pm

kiwi

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You can never "exactly guess" anything. We can make guesses or express an opinion. As long as we make it clear its only a guess or opinion its clear to those who are reading it. The only people who know the exact reasoning for the LOLC decision to divest its stake in PMB are the directors and execs of LOLC.

Guess - transitive verb, intransitive verb

to form a judgment or estimate of (something) without actual knowledge or enough facts for certainty; conjecture; surmise

The last thing we need is another GREG kinda drama!