The most powerful card in the stock market
![The most powerful card in the stock market](https://ussnsimg.moomoo.com/1652359840033-random7683-101592816-android-org.jpg/bigmoo)
One important factor that investors may forget to take into consideration when buying stocks is the power of government. During these 2 years I have seen this card played in the stock market both causing the stock to crash and to rally.
When covid first begin, we all know that airline and marine industry are hit the hardest. Many worry that they will go bankrupt and that will cause investors to lose all their capital. however, Singapore gahmen (Singlish term for government) say cannot. $SIA (C6L.SG)$ and $Seatrium (S51.SG)$ was rescued through $Temasek Holdings (BK2536)$. Gahmen is not gonna let them die and mop up all the unwanted rights issues to ensure they have tons of money to survive the storm. I was one of the silly goose that bought tons of their rights issues too![]()
Well, they survived and the share price did not keep going down to oblivion despite them losing tons of money.
On the other hand, we saw that Chinese gahmen had been whacking hard on Chinese company, trying to make sure they dont go out of line. The one that kena whack the most is $DiDi Global (Delisted) (DIDI.US)$. You want to fly? gahmen say cannot. bam fell into the sea and struggling to survive. I'm also one of the silly goose that bought a bit, in hopes that they will uno reverse the gahmen say cannot card. and not forgetting all the poor Chinese stocks like $Futu Holdings Ltd (FUTU.US)$, $UP Fintech (TIGR.US)$, $Alibaba (BABA.US)$
So what can we learn here? gahmen is an important factor that can promote and kill any company or industries they want to. So do keep a lookout for any positive trend such as EV, AI and Green energy, and be a bit more careful of those that is treading on gray areas like crypto $Bitcoin (BTC.CC)$, which could be good regulation (like making it a recognised currency) or bad regulation (like China banning crypto). History have shown that everything that is not regulated will be regulated eventually. so trade safe![]()
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When covid first begin, we all know that airline and marine industry are hit the hardest. Many worry that they will go bankrupt and that will cause investors to lose all their capital. however, Singapore gahmen (Singlish term for government) say cannot. $SIA (C6L.SG)$ and $Seatrium (S51.SG)$ was rescued through $Temasek Holdings (BK2536)$. Gahmen is not gonna let them die and mop up all the unwanted rights issues to ensure they have tons of money to survive the storm. I was one of the silly goose that bought tons of their rights issues too
On the other hand, we saw that Chinese gahmen had been whacking hard on Chinese company, trying to make sure they dont go out of line. The one that kena whack the most is $DiDi Global (Delisted) (DIDI.US)$. You want to fly? gahmen say cannot. bam fell into the sea and struggling to survive. I'm also one of the silly goose that bought a bit, in hopes that they will uno reverse the gahmen say cannot card. and not forgetting all the poor Chinese stocks like $Futu Holdings Ltd (FUTU.US)$, $UP Fintech (TIGR.US)$, $Alibaba (BABA.US)$
So what can we learn here? gahmen is an important factor that can promote and kill any company or industries they want to. So do keep a lookout for any positive trend such as EV, AI and Green energy, and be a bit more careful of those that is treading on gray areas like crypto $Bitcoin (BTC.CC)$, which could be good regulation (like making it a recognised currency) or bad regulation (like China banning crypto). History have shown that everything that is not regulated will be regulated eventually. so trade safe
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ATS A trade sniper : hohoho
doctorpot1 OP ATS A trade sniper : Hahaha now bear market, you must be drinking lots of red wine hehehehe. JPow giving you more red wine soon liao. more rate hike, more inflation and more market crash heheheheh![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
ATS A trade sniper doctorpot1 OP : o man can drin abit only
Moon486 : lol
ETYK : next time buy what announce... I avoid hahahaha
doctorpot1 OP ETYK : Hahaha I bought every stock in existence![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
so please avoid them all hehhee
MonkeyGee : Hey Doc, Do you know what will happen to the PUT when DIDI delist? PUT are not zero since DIDI is not delisting due to bankrupcy. Thx
doctorpot1 OP MonkeyGee : From my understanding, still have to settle using the delisted shares. Delisting only, but the shares will still exist. Just have to trade OTC. So the buyer of the option can still force seller to buy the delisted shares at the strike price, or the buyer can choose not to.
one thing about OTC is fee ex and liquidity is low, that time $Luckin Coffee (LKNCY.US)$ delist share was 0.95 but after delist fly to 12.9. I think is cause those option buyer and seller had to buy OTC to settle their trades but since liquidity is so low, kena "short squeeze".
doctorpot1 OP MonkeyGee : but can check with FUTU CS to confirm.
I don't see the OCC putting any adjustment yet https://infomemo.theocc.com/infomemo/search-memo.