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Monday 19 September 2016

ISR Capital - Like Moths to an Open Flame, this will likely end up in tears again


Moths are attracted to light at night, even if that light is from an
open flame.  If one flies too close by mistake, the moth gets burnt!


     ISR Capital's price surge today brings its PE to more than 500 times!   Astronomical by any standards of measurement.   Like moths to an open flame, this is likely to end up in tears again.   Is this going to be another Blumont even before the investigations are over?

Trading on momentum is extremely risky, so beware.   Has SGX raised any query yet?    One was done on 14 September and they'd better raise another one soon.

Holders of the death spiral convertible bonds will have having a field day in this rally and making a killing.   Buyers may likely be taking over their holdings and stock.

Should one "short" this stock?   Probably no.  It is far too risky likewise, not knowing how tightly the stock is held, or if interested parties will push the share price even higher.

Buyers beware!







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