Slow Death

It is sad to be right sometimes. The slow death being witnessed in the new covereds, namely: Genting-CD, PBB-CB and YTL-CB, is sad and unstoppable. Sad because the bulk of the buyers have to be retail players. No institutional investor would be buying these covereds at these valuations. Looking at the selling, the holders are still starry eyed, there is still a long way down to go.

Sad because no one in the business papers are writing anything to warn them, maybe all are also involved?! Bursa should take some responsibility in that it has FAILED to educate the masses on covereds. Just offering courses is insufficient, have to make it reaches the critical mass of players by hook or crook. Even brokers have not done enough to educate remisiers and dealers. It is sad cause there will be no more buyers very soon for these 3 covereds, and buyers yesterday could very well lose 50% or more within 3 days or contra.

Should retail players learn the hard way that absolute cheap prices do not apply that well in covered warrants as in normal shares. Normal penny stocks can still be played up, syndicate wise, or you can still lock up penny shares waiting for the next turn of the century to make back. But not these covered warrants because they have a tangible value and a time to expiry. No syndicate is going to touch that, as they may be left holding a bag that will be worth nothing should things go wrong. Can go to zero very fast-la auntie .. sigh...