KUALA LUMPUR: The Minority Shareholders Watch Group (MSWG) has advised all retail investors to exercise caution in their dealing of stocks, especially due to recent calls in social media to shore up the share price of certain stocks.
In a statement issued on Friday, MSWG said some retail investors have decided to take on institutional investors who short certain shares.
“In ‘bursabets’ a new subreddit on social news aggregator site Reddit, Malaysian retail investors have been discussing buying up stocks of glove makers.
“Their issue is that the share prices of glove companies having dropped in recent months despite the increasing profits reported by these firms. The retail investors are looking to buy shares of medical glove makers in an attempt to drive up their prices and counter the short sellers who tend to drive the prices down, ” it said.
KUALA LUMPUR (Jan 29): Amid a move by some retail investors to take on institutional short sellers, the Minority Shareholders Watch Group (MSWG) has advised the retail players to exercise diligence and be aware of the risks involved in such initiatives.
In a statement today, MSWG noted the retail investors are looking to buy shares of medical glove makers in an attempt to drive up their prices and counter the short sellers who tend to drive the prices down. In bursabets a new subreddit on social news aggregator site Reddit, Malaysian retail investors have been discussing buying up stocks of glove makers. Their issue is that the share prices of glove companies have dropped in recent months despite the increasing profits reported by these firms.
MSWG cautions retail investors of risks in taking on institutional investors 29 Jan 2021 / 17:48 H.
KUALA LUMPUR: The Minority Shareholders Watch Group (MSWG) has cautioned minority shareholders to exercise diligence and understand the risks involved when taking on institutional investors who short certain shares.
MSWG noted that in ‘bursabets’ a new subreddit on social news aggregator site Reddit Malaysian retail investors have been discussing buying up stocks of glove makers as the share prices have fallen in recent months despite these firms reporting increasing profits.
“The retail investors are looking to buy shares of medical glove makers in an attempt to drive up their prices and counter the short sellers who tend to drive the prices down. In short, they are inspired by the recent David vs Goliath battle in US firm GameStop Corp,” it said in a statement today.
Minority Shareholders Watch Group (MSWG) chief executive officer Devanesan Evanson said virtual AGMs are susceptible to abuse, as virtual questions can be ignored to the exasperation of the shareholder
PETALING JAYA: With virtual AGMs becoming the new normal in the face of a global pandemic, there have been calls by experts and observers to enhance such meetings in the interest of corporate governance.
Minority Shareholders Watch Group (MSWG) chief executive officer Devanesan Evanson said virtual AGMs are susceptible to abuse, as virtual questions can be ignored to the exasperation of the shareholder.
“This has happened to MSWG analysts who have attended virtual AGMs and their virtual questions were ignored. The questions are not even read out by the chairman.
Minority Shareholders Watch Group chief executive officer Devanesan Evanson (pic) said the issuance of the guidance note is timely, considering that there has been a proliferation of activity on the Internet which may cross the line between investment guidance (an unlicensed activity) and the regulated activity of investment advice.
PETALING JAYA: A quick check on social media platforms and blogs would reveal that unlicensed “investment gurus” have mushroomed, especially after the stock market boomed earlier this year.
By offering stock ideas and “buy” calls, these unlicensed investment gurus are taking advantage of the new and inexperienced retail investors who have flooded the market in search of higher profits as fixed deposit returns decline due to lower interest rates.