Tuesday, October 26, 2004

Paradox?

I think the joy in trading in stocks in the stock market is in the intrigue and suspense of not knowing the fate of your share the following and one may argue that trading in the stock market is to that extent a luxury only for the bloak who has further loot stashed elsewhere. The fluctuation of the EABL share price that Nathan cited [i cant confirm or deny- shan't pretend to follow the price of EABL shares- absolutely no spiritual/moralist grounds- i purposely avoid the morality issue] perhaps could be taken ambivalently because the downward movement of the price means that some guy who couldnt afford it a while ago, will now afford it- and for the company who's equity is being traded- its a plus because of the all-essential element of liquidity in the shares of the company which ensures that there's movement or trade of it's capital. Similarly for the guy who's already holding EABL shares at the time of the price drop, he is then afforded the opportunity to increase his shareholding at a reduced price and cross his fingers or rub his rosary praying that the price goes up. I believe that's also why EABL was forced to split its shares for the twin blessings of the primary and secondary markets- ie. a pseudo-fresh flotation of shares, while still increasing the bilateral trade of existing shares.
But for EABL selling an addictive drug in prime quantities... there's no doubting (i) that it will take much more than the 'Alcohol + careless sex = AIDS' campaign to slow down the pace at which my fettered and enslaved brethren [:) no offence to any die-hard beer fans!] sprint to the locals and upmarket pubs and (ii) that the share price will steadily rise, albeit with few ups and downs factored in by the harsh prevailing economic situation on the ground. (Man, i wish i was a top manager at EABL where the booze actually sells itself and i get paid for it)

Funny (commercial break)... you wont believe that i only learnt a week ago what 'keroro' means! And the jamaa who was enlightening me had a laugh! But where would Nonini surely expect me to pick up the word????

(At the risk of sounding like the absolute pessimist) Am not convinced that the split by EABL will benefit the small and/or new investor for long, because as certainly as i would get high on a sniff of cocaine- the price of the share will still definitely shoot up to the same astronomical figures in the shortest time. And u must take into account the fact that many dealers will not want to assist you to purchase the 30 shares that u may afford- many insist that the least they would be able to purchase is 100 shares. Ok... now as i continue to write- i feel more like an absolute pessimist/ pragmatist! My view is that, to purchase and deal in the trade of shares... particularly high cost shares like those of EABL and say StanChart, one needs to have his small fortune well stashed/utilised elsewhere with steady growth... whereupon the option of the stock market may be considered perhaps for the utilisation of the proceeds of these other chums or the loose extra chums that one can afford to lose in the event that the USA and our lovely IMF and World (God forbid) is swallowed by the ocean. But hey... thats why we need to invest in the small entities listed at the stock exchange- at least then, we can afford 500 shares at a go and gamble with it!

Anyone concurs?


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