Posted by bullpiano > 2021-02-17 21:08 | Report Abuse

@Ben Tan, Thank you for the analysis.

Is it legal for short-seller to buy shares via off-market deals?

Posted by JuzzyOracle > 2021-02-17 22:38 | Report Abuse

The whole exercise is more opaque than the cup of black coffee I just had. It stinks to high heaven. It just reinforced my belief that they are all in it together in one big cabal with the retailers at the bottom of the food chain. So much for RSS being assisting in providing liquidity to the market. All nice soundbites to hoodwink the retailers. And that is how retailers should approach investing in this casino with their hard earned money. With a healthy dose of skepticism, and always do your homework!

Posted by Ben Tan > 2021-02-18 05:12 | Report Abuse

bullpiano, JuzzyOracle, thank you for your comments.

bullpiano, I was unable to find information that would confirm if off-market covering of previously opened short positions is allowed on Bursa. However, simple logic would dictate that this practice is not allowed. The reason more transparency is brought to the short selling practices in general is so that investors can make informed decisions based on the existing open market positions on a stock. Thus, if a short position has been opened via open market activity, it should be required to be closed via open market actions, too.

JuzzyOracle, unfortunately in cases like this there is hardly anything retailers could do to prepare themselves in advance. The only thing that could help is if retailers make sure both the relevant authorities (in this case SC) and the media hear about suspicious looking cases, so that they hopefully investigate further.

Posted by BeLikeBuffett > 2021-02-18 09:40 | Report Abuse

as usual, never trust bankers or the authority!

Posted by cherry88 > 2021-02-18 10:02 | Report Abuse

Very informative. Appreciate your effort to combine all the facts into 1 piece. Unlike other bloggers who are just bull and shitting along the way. Thanks !

Posted by mikeazk > 2021-02-18 11:59 | Report Abuse

So what's the conclusion Ben? EPF colluding with short sellers?

Posted by Citadel00 > 2021-02-18 12:00 | Report Abuse

so?glove will up??

Posted by Thepolicia > 2021-02-18 12:51 | Report Abuse

WHEN STOCKS GO UP, then players get 10year jail for stock manipulation, ramping up , insider trading etc THE AUTHORITIES AND LAW punishes severely BUt its okay if someone manipulates it downwards by driving fear into investors ! Because they have never seen it before ...a 200million shares shortie GORILLA playing in bursa pond !

Posted by AdCool > 2021-02-18 15:59 | Report Abuse

MCDX chart was showing higher IB fund from 8 Jan - 18 Jan, whereby TopGlove was up from 5.8 to 6.77. Then another batch from 22 Jan - 26 Jan, whereby TopGlove was up from 6.02 to 6.58. The last batch was from 29 Jan - 5 Feb, whereby TopGlove was up from 6.21 to 7.07.

All of these buying batch ended up with sharp drop after IB stop buying before they bought again after the sharp drop.

Posted by AdCool > 2021-02-18 16:02 | Report Abuse

Such pattern is similar in Harta and Supermax too. Now the question is whether they made money by buying back Top Glove above 5.80 (first batch), 6.02 (2nd batch) and 6.21 (3rd batch)

Posted by Peter5151 > 2021-02-18 16:58 | Report Abuse

@Ben Tan, Thank you for your detail analysis

Posted by Ben Tan > 2021-02-18 17:01 | Report Abuse

BeLikeBuffett, cherry88, mikeazk, Citadel00, Thepolicia, AdCool, Peter5151, thank you for your comments.

mikeazk, the conclusion is that most likely what Bursa is saying is false, i.e. the chance of it being false based on simple math is a lot higher than it being true. Bursa might be misled by the short seller though, we do not know. It would be great for them to check thoroughly on that of course.

AdCool, the short seller is most certainly losing money, no matter at what price or how they have covered their shorts. Their average shorted price is 5.80 as of yesterday, so if there is any question it would be how much money they have lost.

Posted by AdCool > 2021-02-18 17:14 | Report Abuse

Even if they are losing money, they are not letting off the gloves counters. They are still attacking it amidst lesser attacks nowadays. So who was the one selling down gloves? warrants issuers? We should wait until most warrants (in money) expired by mid March 2021.

Posted by bullpiano > 2021-02-18 21:02 | Report Abuse

@Ben Tan, Thank you for your reply.

Posted by PunTatBerSiul > 2021-02-18 21:13 |

Post removed.Why?

Posted by hylees > 2021-02-18 22:41 | Report Abuse

Is off market transaction allowed? see the link below on bursa's trading manual

https://www.bursamalaysia.com/sites/5d809dcf39fba22790cad230/assets/5fcdabe439fba27a9596b8f6/POs_Trading_Manual_v27_Final_highlighted.pdf

Clause:
"7.1.3 Short selling is only applicable to Normal Market, and not allowed for Odd lot, Buying-in and DBT markets."

So DBT markets (direct business transactions) are not allowed

Posted by hylees > 2021-02-18 22:44 | Report Abuse

Clause 7.2.2 in the trading manual for RSS (Regulated Short Selling) specifically:

"POs must open and use a designated trading account (RSS trading accounts) for RSS orders. Normal orders and Direct Business Transactions (DBTs) are not allowed in RSS trading account. With the exception of :
a) erroneous trades on non-RSS approved securities and shares of non-RSS approved securities credited into the designated RSS account arising from corporate action. To facilitate rectification, normal buy and sell would be allowed to close off such positions. The PO is required to report such cases if any in the Monthly Compliance Report.
b) normal buy transactions of RSS approved securities in the RSS account are for return only."

Normal buy transaction of RSS securities are for return only...still DBT IS NOT ALLOWED

Posted by Protectcap > 2021-02-18 23:00 | Report Abuse

Hi Mr Ben Tan,you did well comb thru the short seller data.After receiving the BURSA email replied,I have followed up with request them to publish daily the RSBB ( regulated securities buy back !!! ) ,since we have RSS( now in trading platform daily ),Net short position ( daily annoucement ond day delay) for transparency and level playing filed to all.The "One shot" return of borrow securities accumualate many days is tantamount ambush shooting the retailers. If the off market deal by major shareholders need announce, then the short sellers off market deal should not be an exception !!! If pump and dump is a illegal, then the dump ( short sell together with bad write up /rumours legally or illegally) and pump isnt it illegal as well? Hope all can write to BURSA to make the requests and give them pressure and urgency to do that ...The short sell Game stop here !!! Good luck !

Posted by AzerothJr > 2021-02-19 03:05 | Report Abuse

Don't need to delve too much into RSS.
What is the point of understanding it if its not making sense?
Stocks goes up and down with or without RSS.
You seems to be delving into RSS just to justify the sake of why the stock price is being artificially pushed down.
It could be other reasons that you are not aware of but its not always when a stock goes down that RSS is to be blamed.
What you need to know is that RSS merely expedited the drop but not entirely contributing to the drop.

Posted by CharlesT > 2021-02-19 06:01 | Report Abuse

1) ASP is coming down
2) Number of shareholders in glove co increases by 300%

Dont have to waste yr time to study so much.

Posted by Winner88 > 2021-02-19 08:03 | Report Abuse

I still believe that , short selling should not be allowed, especially not the owner of the share.

Posted by LossAversion > 2021-02-19 08:19 | Report Abuse

@CharlesT. If that is true, dont you think TS LWC and Stanley are so silly to be expanding their businesses?? They should listen to you!!

Posted by CharlesT > 2021-02-19 08:42 | Report Abuse

Biz still has to expand lah or else some other may overtake them....but once in a century pandemic n high ASP (sharp increase in profit by more than 15 times etc) cannot sustain loh

Posted by CharlesT > 2021-02-19 08:44 | Report Abuse

Will likely be back to its normal net profit margin in next 2 to 3 years time

Posted by lkoky > 2021-02-19 08:44 | Report Abuse

@Ben, based on Bursa report on 19-Feb. net short position been reduced another 15m shares on 18-Feb. Again without moving the open market price.

Posted by CharlesT > 2021-02-19 08:46 | Report Abuse

Over the years, those who bought n hold Big 4 glove co shares are proven to be very good long term investment...no doubt on that

However, for those latecomers who bought during Q4 last year will likely to be a bad inv in long run

Mark my words

Posted by Ben Tan > 2021-02-19 10:47 | Report Abuse

AdCool, bullpiano, hylees, Protectcap, AzerothJr, CharlesT, Winner88, LossAversion, lkoky, thank you for your comments.

@AdCool, the short seller has to continually suppress the prices until they successfully exit their positions. For instance, currently they are suppressing Supermax as much as possible, because this is one way in which they may recuperate some of the losses incurred on Top Glove and Harta. Supermax's shareholder base comprises of retailers to a much larger extent than how it is for any of the other major glove companies, so suppressing the price is easier as long as they are able to find the necessary amount of shares to short.

@hylees, yes, I found the same information. I hope people will inquire with Bursa and with SC for a confirmation on if this practice is indeed disallowed.

@Protectcap, yes, I hope more people will inquire about this with Bursa. Extra transparency has never hurt anyone, except for anyone doing shady deeds, of course.

@AzerothJr, the reasons for market price fluctuations of a company's shares are a myriad. The goal here is not to explain all of them.

@CharlesT, your first statement is true - eventually the ASPs will go down, and if you have read my other posts, you would know that I believe that is a rather healthy thing to happen. In any case, your comments are not related to this post.

@lkoly, yes, the skill of the short seller is incredible in buying (according to Bursa - in open market transactions) huge amounts of shares without that resulting in a corresponding market price increase.

Posted by treasurehunt > 2021-02-19 14:27 | Report Abuse

We have been witnessed bull and bear cycle in Bursa in a short period. Don't get too excited of bull run in counters other than glove companies.

Posted by dusti > 2021-02-22 22:40 | Report Abuse

Ben, You continue to do a great job unearthing several mysteries. There seems to be so many suspicious activities going on.
Certainly Bursa”s email to you is a major disappointment. Shameful in fact.
I wonder whether anyone in a responsible position has noticed your revelations. Any rules that allow manipulation of the market should be reviewed promptly. Looks like our market is not ready for complex trading schemes unless transparency is required. The CEO must review the situation to safeguard investors. We don’t hear of suspicious activities in other bourses in S.E.Asia
I hope your efforts will bear fruit in the near future.