Important key dates to know on Corporate Announcement and how it affect short term traders and how to capitalise on it

This weekend I will be sharing on this key aspect to let traders understand important information to help in your trading. Usually during this period, less share and less float will appear as key personnel from the listed company especially their staffs cannot trade. Also do note that any company share buy back by the company will also have to be stopped during this black out period. Staffs are usually told through company internal Memo that they cannot trade the shares during this window period. A classic example is Best World shares today as today mark the start of the cannot trade Black out period from 21st Oct to 1st Nov.

Below is the rule that traders or investors need to take note:

Officers and employees of the Company two weeks before the announcement of the Company’s financial results for the first three quarters and one month prior to the announcement of the full year results (“Black-out Period”). Usually there will be internal memo to notify and remind all Directors, officers and employees of the Company on compliance with the best practices on dealing in securities pursuant to Listing Rule 1207(19)(c), in not dealing with the Company’s securities during the Black-out Period. The Company, its Directors and officers should be aware that the Company should not deal in its own securities (including undertaking any share repurchases) during the Black-out Period. Therefore, the Company would wish to complied with the Listing Rule 1207(19)(c) and not run foul with SGX.

Key note to understand on above points are, if the players of the company shares belong to insiders, then during this period there may be less buyers and harder for you to run or sell your shares. Also if the company is undergoing share buyback and supporting the share prices through daily share buy back, the price may tank during the 2 weeks of no buying from the company or 4 weeks if it is the full year listing result period. So for those who trade heavy, be prepared to reduce your position 2 weeks prior to quarter result announcement due to less liquidity.

On the other hand, if the company shares are being played by outsiders, then usually the shares will go higher as less resistance from internal people to sell the shares to them as this is company "black out" period. If you see the start of moving up of shares during "black out" period, it is likely this counter is being played by outsiders or BBs not related to the company. Is good to find out who are the players from market rumours, their style of playing. The art of trading is not so simple as I analyse on fundamental and corporate information so the impact is great. There is no free lunch in this world so from my sharing, go study the correlation between "black out" period and company share prices. There are so many companies in SGX for you to find one that you can make money from it.

Also take note on listed company share buy back rules, and do not be a goon to queue high beyond the company buying limit price as they can only buy within 5% of the last 5 days average. As I believe a lot do not know this so re emphasize the rule.

1. on-market purchases should not exceed 5% above he average closing market prices of the share over the last five market days;

2. details of purchases to be released to the SGX-ST, if non-market purchases, by 9am on the next market day, or, if an off-market acquisition, by 9am on the second market day after the close of acceptance.

The gist of this article is there are a lot to learn just on fundamental and making money from corporate announcement/action. Is up to oneself to master and find your niche. Just like those 金庸Jin Yong martial art novel, I love them since young as different people can reach different standard with the same 武林秘籍martial art manual. Just like Stockcham stock trading book, is should be a good buy if you master it fully and reach 顶峰. But if you are lousy and do not bother to think and anyalze, any 武林秘籍 or good sharing/education posts will also turn to thrash and not worth anything as you cannot make money from it. How high the level and how good you can reach depend on how much you can make use of it and understand it. You no need the most powerful 武林秘籍 like 九阳神功 to make money as even you have that in your hand but always stuck at level 1 is pointless. Is better to keep things simple and learn simple and take a 武林秘籍 that is easy to learn like 太极拳. For new investors please learn basic like 扎马步and make sure you are good before proceeding further, it mirrors to those who learn what is stock, what is dividend, how to trade. Make sure you are good at basics before learning further. I hate it when people do not learn how to walk want to learn how to fly 一步登天. If is so easy then everyone no need to work. There are genius who can skip a lot of steps and learn fast, but there are not many 张无忌 in this world. I am not a genius so I can learn through the hard way. That is why from this crowd sharing platform, we can see same information being shared or learnt, like Warren Buffett value investing methodology, but end result differ because some apply it well while others did not apply it well or make mistake. Hope this weekend sharing is good and have a good coming weekend ahead all. For further thinking, evaluation and discussion.

If you are good even simple trading and investing methodology that you apply can yield you consistent return or result. If you are no good, go learn contra or complicated trading methodology will only end up in tears from my experience.

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29 comments
BrennenPak

中国前领袖邓小平曾经说过一句话:《不论白猫黑猫,只要会抓老鼠的就是好猫》。同样的,不论我们用什么手法,只要能赚钱的手法,那就是好手法!

Li_Guang_Sheng

Reply to @2V_ : Hahaha. Our market is "sick". My personal opinion to revive it must be industry people to run it. My gut feel is all the policies implemented are by non industry people who do not know what they doing. On paper look logical, but in reality doom to fail. :(

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benjamin_tan

thank you for sharing! very apt advice now :)

wellhandy

扎马步 is actually discipline. showing restraint against buying and selling. doing nothing when there is nothing to be done. the itch to do something when nothing is in your favour is as great as the pain in rapidly deteriorating trade. the mind money method that everyone talks about is no myth. a stool needs 3 legs.

Young

Reply to @wellhandy : Yes ,,扎马步,耐心的等, 1.不冲高不卖,不跳水不买,横盘不交易。

Young

金庸笔下的 武林江湖 。。 You are right, the stocks market is like what Jin Yong described " martial art world 武林江湖 ": ,,many types of Gongfu Masters ( Share market Guru/Trainer ) and 武林秘籍martial art manuals ( Analysis n tips ) ,, I also agreed with your views on the Stockcham stock trading book, , I read the Stockcham stock trading book and I think it is “ 打狗棒法 " ,, very practical n target at mid to low range stocks ,, and Raymond Chua is like 乔峰 ,,

mrman

股林秘籍必读之100. 赞一个。

BrennenPak

Reply to @mrman : 股林秘籍- I like that!

seanyap

What do you mean by simple trading? I just started trading and have been playing contra unconsciously, i was so new that i only played high volume stocks and lost quite a bit of my money. This money is an extra and i planned to use it to learn stocks so that i can invest in the future. What do you think?

seanyap

Reply to @Jeremiahyeo : Thanks for sharing will take a look

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LiW

tian wan capital limited bought those shares. need to do some research on the company. @bgting @li_guang_sheng

LiW

sir, got info on QAF? 57 million shares traded today. that's...... not normal.

LiW

Reply to @bgting : Thanks man. very good info!

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LiW

i like this. "Also take note on listed company share buy back rules, and do not be a goon to queue high beyond the company buying limit price as they can only buy within 5% of the last 5 days average. As I believe a lot do not know this so re emphasize the rule." didn't know at all!

Li_Guang_Sheng

Reply to @lijiw : Why I sharing above statement as exasperated that I am buying on behalf for company yet those people queue so far away expecting us to be able to book when SGX restrict us. So must understand the rules well to profit from it.

BULLytheBEAR

Good sharing Bro, as usual :)

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