This wouldn't raise an eyebrow except that Sing Holdings recorded an extraordinary, unexplained increase of about 10 percent within a single day, with large volume.
I have already sold my shares in this company because I think I need to revise my idea of an asset play. Whether the market decided to act otherwise is not in my control nor my interest... I need to hold forth to my ideas stubbornly.
But I do have some views on insider trading.
Firstly, they are, definitely something we can do without, for it propagates the idea that in order to make a decent amount of money from the stock market, you need to have insider information. You can never eradicate insider trading with regulation...
Secondly, it takes some courage to act upon insider info. Let me explain.. for instance, an associate will advise me that company ABC is going to announce that they have secure a large project, and it is best to act upon it.
My first question will be: How big is this project? The second question will be: When will it happen?
It is also foolhardy to assume that the catalyst will happen within days. For instance, how would you felt if the price plunged by 1%, with a slightly larger than normal volume? Would you steadfastly held on? After all, technical analysis is about reading crowd emotion and by buying on insider information, you are influenced by a mere 1 person, how about more?
If a certain Mr Schloss could hide inside a small office, meet no management, and yet make plenty of money, why not?
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