Every now and then I see some amazing jumps in stocks and there is no news or information. One that springs to mind is FMG. They are always getting the preverbal ‘speeding ticket’, yet they never seem to get caught – that’s if there is anything to catch them at?!
However, what has prompted this new thread is the movement of a particular stock and hence has raise my concern at the ASX, ASIC or any other regulatory body, which refuses to do anything about stock/price manipulation.
I will name the stock, TEY – Torrens Energy. I did own shares in these – until today, and sold them all for a tidy profit. So, my gripe isn’t that I lost money etc., its that a company, which has the knowledge of ‘market relevant’ information to hand yet refuses, or just doesn’t bother releasing that information until the trading day is well underway.
I will come out and say it, I don’t believe this information came to the hands of TEY at 12.16pm 1 minute before they informed the ASX, they had this from the afternoon/day before, or before the start of trade today. Therefore, someone somewhere had access to this information and filtered it around to others and so the price increases yesterday and today.
This stock has been trading in a dead range for months now, up a cent or two, down a cent or two, yet nothing apart from an announcement of a partner (AGL) buying in for a few million has the share price made any significant movements.
So, all of a sudden over the past 2 days this stock moves some 7 cents, and today moved as much as 7 cents again before an announcement to the market. So, they effectively traded yesterday without releasing any information, and traded for the first 2 and half hours today before making a ‘market sensitive’ announcement. Did I see anything from the ASX yesterday saying why the price move? No! Has there been anything today asking, why the price move? Is there any reason why you didn’t release this at 9am, or 10am before trading started? Were you not aware of this information was coming today (or yesterday) and so why did you not ask for a trading halt? And the list of question could go on.
I have in past when I have seen some pretty ‘dodgy’ price movements written to ASIC about my concerns and every time I get back – “thank you, yet it all looks ok to us, or we cant prove anything”. The latter suggests to me, that there could be something to prove yet they don’t have time or the resources to go looking.
Maybe there isn’t anything untoward, yet I think there is!
So, are the regulators just incompetent and don’t care about the job they are suppose to be doing, or are they corrupt and negligent? I’m sure it's not corruption, yet I am dam sure it is negligence and incompetence.
When will there be some real and effective laws put in place so that price manipulation is caught and dealt with in a way that really matters, and will make people think twice about doing it next time?
If you want to stop people doing something, then make a real example out of those first few, so the penalty far outweighs the crime, or misconduct.
Any regulatory body that does issue a ‘speeding ticket’ rarely follows it up. For example, the other day VBA was issue with one. 4 pages from ASX to VBA, and half a page from VBA to ASX, saying ‘no’ to each question. Maybe they don’t know anything about why the price is moving, particularly in this case there has been no announcement a week on so maybe it was just market conditions, yet how can a simple 2 letter answer be suffice?
There are a number of other problems with regulators, and its not just catching the illegal things going on, it’s the way it is shaped and run. I wont go into it much, yet a prime example – a very good one from Cuttlefish is:
"So the ASX is regulated by ... well pretty much the ASX - its largely "self regulating" - i.e. the ASX is the regulator of companies that list on the ASX but the ASX is itself a company listed on the ASX. Well that apparently doesn't matter too much, because the chairman of BCS, another company that is listed on the ASX is also a director of the ASX.
Maybe the CBA chief could get a job as the head of ASIC and then the banks wouldn't have to worry about all these pesky Storm clients or anybody else for that matter."
That was taken from the BCS – BrisConnections Unit Trust thread.
When will this sort of thing be under investigation and changed???????????????