EPF-Market Maker or Destroyer?

Gambling with public cash?

In a small market like Bursar KL, pension funds rule supreme if foreign funds shun it; like presently.

For whatever reasons it may have; through its approved traders,EPF buys heavily moving prices like mountains or sell down a counter like that Japanese tsumani leveling prices like crazy!

As it brings joy, it brings tears-that double-edged sword.

If you have acute perceptive skills,look no further than the current IPOs from Gas Malaysia, FGV and the current IHH.

Like it or not ,even if they are not cornerstone anchor buyers, they massively move into counters and play the institutional fool with the people's hard earn cash.

Last week, they sold down super-blues from BAT, PBB, TM,TNB and what not; possibly because they could not digest the FGV load.

Now, they have off-loaded the FGV to risk takers, they have come back to reclaim their holdings in the super-blues such as BAT, TM, Axiata and TNB.

An interesting thing I saw was they had begun to load up on YTL Corp, PBB, TM,TNB and Digi-com.

They must have little birds telling them the time to go into these two counters because of corporate developments or they have been pushing up the prices to reclaim shares that are dividend paying and  as for the people's money-they luck in or luck out at your own risk!

Poor contributors!

BJF-Catastrophe OR Sales or what?

Wahloi! Designer Coffee...

Yes, the board is crimson red for both BJFoods (BJF) and its Offer for Sale(OR).

From the get go, when it started off at a good 69.5 sen, it has gone down the sewage of prices touching a nadir of  56.5 en for a dunking 8.5 sen loss. Right now, it is hovering at the inconsolable bid price of 57.5 sen and 58.5 sen.

The number of  done deals is 5,076 and from the array of buyers and sellers in lot terms,there is a big seller at 59.5 sen (200 lots) and 88 lots at 0.60 sen.

Until it stops trading on 23 July, it can go both ways depending on the price of BJF.

By 24th July, get your money to buy the rights at 65 sen with the accompanying warrants.

If I am to postulate, at the ex-price for the OR at 66.5 and adding RM1 as the overnight closing price of BJF, the rights and mother shares should even out to RM1.65 for a  16 sen gain after deducting for trading overheads.

I would like to guess that the warrants should do well at 70 sen convertible price on a longer term with the inclusion of Starbucks into BJF's account. At the current price of BJF, you should stand to gain about 15 sen per warrant on conversion.

It is still 'early days' as weak holders of the OR who do not want to cough out cash for the BJF rights have sold or are lining up for the sale of the OR.

Remember day traders can manipulate if there is one sen net either way.