The adage “a picture is worth a thousand words”, widely attributed to Frederick R. Barnard, refers to the idea that complex stories can be described with just a single image, or that an image may be more influential than a substantial amount of descriptive text.
In the case of Zain, a picture is worth a thousand suspicious questions, of which none is willing to ask nor answer. All I can offer is hope that the much-delayed Capital Market Authority will help us find answers to questions that have baffled us, and enforce tough punishment for insider trading in a stock market battered by a string of irregularities.
I’ll leave you with the picture which is a chart of the daily trading volume on Zain in the week prior to the announcement of the deal.
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Loading ...Tags: Capital Market Authority, Kuwait, Zain
Sal,
Since many, if not most, of the fortunes in our market are being earned through these types of unethical, unprofessional and non-legitimate actions one can only choose to between standing in the sidelines waiting for consciouses to wake, or get involved with the action and benefit from these events.
As many people here, it would be a pleasure to see the Capital market Authority apply its laws, and as coercive as the “Baladiya” did, but since this decision isn’t influenced by any of your moves you are not doing yourself any favors by letting these opportunities pass by.
Bottom line, when Kharafi start buying without logical reason, keep your eyes open for speculative profit
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Salbader,
Who takes the losses except us small investors? When a speculator pulls a trade he has a set time frame to exit etc.. We, the herd, follow and enjoy the upside, but once it starts going limit down everyday there’s no way out and I have alot of examples that we can share.
In Zain’s example, the deal was announced on Sunday..Why didnt regulation investigate the non-questionable insider trading in the prior week?
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Salbader Reply:
February 24th, 2010 at 9:11 am
Sal,
Key word here is Herd,
I understand what your saying but you cannot have sympathy for herd that invest their hard earned money into stocks based on Rumors, high activity or even at times Nothing.
These people are the fuel to all market manipulators and one of the main causes for unjustified bull rallies, that ultimately end up with devastating corrections.
I have (as have many) been part of this herd family in the past and stood firmly by all my Buy/Sell decisions no matter how unjustified they were but i did intend to take high risks for the possibility to endure hefty profit. But When they day comes that tables turn, market makers exit and my stock exposes its bad side, the consequence of continuous day after day limit downs have only one person to blame… and no its not a Minister.
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salbader – if what you say is true then ‘earned’ is the wrong word to use as it implies honest income.
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Salbader Reply:
February 24th, 2010 at 8:41 am
Peteyb,
“Earned” was deliberately written, although i do get your point that these people don’t deserve the credit to say they have “Earned” what they made.
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Habibi is it a concidence that the top business man, Naser alKhorafi, is brother to the head of the parliment (Jasem alKhorafi)?
Lets not be naive and think that this “Market Authority” will solve our deep rooted problems!
investigating the Khorafi group is like investigating the Mafia….there are not enough men in this coutry to do this honor.
Kuwait is a fifdom divided between few trading families and they can abuse its political and economic systems as much as they want….and no one will raise an eyebrow ….its almost accepted as the right thing to do if you are a top dog like Naser alKhorafi and his brother
they own the bank, the paper business, they control public thinking through thier “classy” newspaper (Al Qabas), and they own investment companies that will pump and dump and cross shares like there is no tomorrow…..
The Mafia can take lessons from this group!
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Sal Reply:
February 23rd, 2010 at 12:36 pm
I’m not sure I agree. Naser creates counterparty risk for his brother as Jasem’s political supports were surely not happy about the way the 46% deal went. Thats to Bharti for saving him or else Jasem would certainly not run for parliment again. They are more like the EU, than a mafia. You have Germany and Greece at the two extreme ends.
We have hope in the Capital Market Authority… Maybe we won’t see immediate effects, but things are going to be different. I agree that certain families are somewhat “protected” or “untouchables” just like De Niro’s movie, but it all depends on who heads the CMA and the backing he has from the Prime minister.
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Sal,
I like the financial risk analogy …however I admit
you are much too hopeful my friend. I wish I can see the situation with such a Hollywood happy ending.
Zain is one deal among many, the best of them of course are kept in private… in the construction business….or what about how Americana was privitaized?
But even this formidable Vampire family business makes mistakes in tursting too much in its own capabilities. as we saw in Zain (sadly they are soon to be saved on this one) and in Port Ghalib!
and trust me on this one, Jasem wins not because of popularity…….but rather because of his $$$
backing from the Prime Minister! ……am I dreaming here??
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