by mrdome » Sun Jan 26, 2020 7:23 pm
OK, after doing some research, I'm out.
What is likely to happen is that investor won't be able to resist early & fast profit taking as has happened before.
"...the exchange generated a lot of interest among local and foreign investors. In the first three days of trading, the share price for the water utility rose 60% above its IPO price, but by the following week, short term-investors started selling to take in profits. The stock price came down substantially. "It's kind of a typical phenomenon for a new exchange. It happened in the Laos market and Vietnam's market. It is no surprise to me," says KT Han, managing director of Tongyang Securities which was the sole underwriter of the IPO. "Some people made a 50% profit within a few days. They tend to be short sighted by this fluctuation in price and it will take some time for them to understand the market and make long-term investments."
https://edition.cnn.com/2012/05/10/busi ... index.html
"We showed you how you could invest in the Cambodian stock market back in April 2012, or 2.5 years ago. Since then, what has happened? Nothing. We were IPO-stage investors in Cambodia’s first public-listed company, Phnom Penh Water Supply Authority (PPWSA) we remain very interested in the market, but it has perpetually disappointed us. PPWSA is now trading at 4,320KHR compared to an IPO price of 6,300KHR that is a spectacular -14.9% annualized return. We are little upset by that, but the company is not a bad company nor has its growth been all that terrible. The price decline is entirely a result of being listed on a dead stock market."
https://www.investmentfrontier.com/2014 ... ge-failed/
OK, after doing some research, I'm out.
What is likely to happen is that investor won't be able to resist early & fast profit taking as has happened before.
"...the exchange generated a lot of interest among local and foreign investors. In the first three days of trading, the share price for the water utility rose 60% above its IPO price, but by the following week, short term-investors started selling to take in profits. The stock price came down substantially. "It's kind of a typical phenomenon for a new exchange. It happened in the Laos market and Vietnam's market. It is no surprise to me," says KT Han, managing director of Tongyang Securities which was the sole underwriter of the IPO. "Some people made a 50% profit within a few days. They tend to be short sighted by this fluctuation in price and it will take some time for them to understand the market and make long-term investments."
https://edition.cnn.com/2012/05/10/business/cambodia-stock-exchange/index.html
"We showed you how you could invest in the Cambodian stock market back in April 2012, or 2.5 years ago. Since then, what has happened? Nothing. We were IPO-stage investors in Cambodia’s first public-listed company, Phnom Penh Water Supply Authority (PPWSA) we remain very interested in the market, but it has perpetually disappointed us. PPWSA is now trading at 4,320KHR compared to an IPO price of 6,300KHR that is a spectacular -14.9% annualized return. We are little upset by that, but the company is not a bad company nor has its growth been all that terrible. The price decline is entirely a result of being listed on a dead stock market."
https://www.investmentfrontier.com/2014/08/16/cambodias-stock-exchange-failed/