When the share price of a particular stock drops like crazy, and the shareholders of the company are still laughing out loud, you must think that these shareholders are probably crazy.
This a an interesting picture found in other blog.
See! We broke the record!
These are the directors of XOX on the debut day of listing. The figures on the board are all red, and you can see 0.700 already. XOX opened 10% down and continue to slide and closed 35% down on its debut. Retail investors are burnt, sad, anxious, disappointed and angry, but the major shareholders look very happy!
Why?
From XOX prospectus
XOX's NTA is just 11sen and is making loss, retail IPO price is at 80sen base on "extraordinary" forecasted "earning". The top 3 individual shareholders are those who laughed the most in the picture. Their average effective cash cost per share is only 10sen!! For IPO at 80sen, they will become 8x richer overnight after listing! Each of them has about 40mil XOX shares (~RM4mil capital). Even if the share price fall to 50sen, their RM4mil investment will still become RM20mil. Why not laughing? Listed and mission accomplished?
Seeing the directors' reaction like this, are you going to invest your money in them? Can they protect shareholders' value? Or perhaps they just laugh because they are requested by the reporters to do so...
One person in the picture looks worried. Is the price already close to his purchase price?
all con man, together with the sc, investment banker n analyst, con the hard earn money of the public...
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