Having paid a high price for a bad investment decision several years ago, I have avoided putting more money into penny stocks since then ("When the penny drops, it's way too late"; last Sunday).
When the prices of Blumont Group, LionGold Corp and Asiasons Capital soared beyond their fundamentals recently, was it just purely free trading?
The Singapore Exchange has shied away from playing its role as the market regulator. Good market governance requires a trigger to stop trading when prices plunge. In a nation proud of its best practices, this is still sadly lacking.
All transactions should be in cash. Contra trading is outmoded and encourages excessive speculation. Advising investors not to cry over spilt milk is futile unless corrective measures are put in place.
As a dispassionate market observer, I look forward to a detailed probe on short-selling or market manipulation.
Tan Kok Thye
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