Friday, 18 April 2014

Why must they do that

When UMA failed to do its job, media was used to do the trick. The exchange is to regulate for fair and orderly market but who is to regulate them? If they know that it has been manipulated, then why still allow for the listing of the call warrant. If the main share is already deemed too explosive and manipulative, don't they know that the call warrant will further fuel the situation? The birth of the call warrant had prompted the company management to quickly come out to deny their involvement. They already smell some sinister acts has been played by someone but little did the management knows the worst has yet to come - using the media carrying such a news with an unfair news title without confirmed answer. The media is just speculating and trying to seal people's fate at the expense of people's misery.

This news article itself is speculation at best or manipulation at worst.

I was asked whether I have sell my holding. My answer is no. Why I did not sell is because 1) no fundamental change to the company, atleast from official channel, except that the share price had risen quite substantially. 2) To sell when the company fundamental has not changed is not my investment strategy despite there is panic selling in the market. 3) The strategy to sell first and buy back later is not how I advocate value investing principle. Yes. The paper gain has reduced substantially but if things are viewed at the longer horizon, this panic selling is just a blip along the prosperous journey.


Having said that, one should regularly review his/her investment plan and tolerance profile. If one has limited investment fund, one would get a rude shock when confronting with such a situation and naturally panic will set in. Thus, one must look at the broader picture. Buy at time when things are less excited and be vigilant when everyone gets excited. What I mean by vigilant here is not necessary you should sell or buy but to take stock of the situation cognisance with your investment plan and tolerance profile.


  1. uncle Z, has you buy more then? Also OCK has drop a bit due to the private placement recently. I think it provides good time to collect more also.