Thread: ISX Signifcance

Originally Posted by MOM2TWO

Those shades look GREAT on you!!!

I agree with you completely, in a weird way, I will be excited if there is a delay because that would really point to them just waiting to RV. Of course, I would prefer to have them rv Monday and no delays with the ISX.

Oh how sweet it would be to go on vacation from work and well...just go on vacation

Originally Posted by Bungalobill

Ever heard of a reverse split? Thats what's going to happen to your stocks after a decent RV.

You're right, I have thought of that a lot. But here is a problem with that. The Outstanding shares for those stocks is in the millions and not billions. Most R/S's happen when a stock is 500 million or more. If they did a R/S then it would limit buying for their stocks. Wharka has like 30 million shares. That is considered as a low floater. The only way to increase their shares after an R/S is to increase the A/S and then dilute the market which means you lose everything. How would that benefit Iraq or us. They would be just another penny market. But you do bring up a good point.

Originally Posted by mewannapeg

Thanks Strongtower. A very good explanation. A few more weeks and we will see what happens. Also ST good to see you posting again.

mewannapeg

I stopped posting on all forums because the bashing was just too rediculous but when my good friend Neno cleaned house it is a better place to post now.

Originally Posted by ChiefWealth53

So if a stock is worth $ .0008 per share before an RV and an RV goes off at 1:1. On that day the stock will go to $1.00? What will this do to the individual companies or is it a wash?

I have talked to many of my investor friends about this and we don't know how it will unfold. They have some sort of plan though.

Originally Posted by lewscrew

I have a question also.

If the RV happens after ISX opens and thousands of people sell all their
stocks to make money, isn't there most likely someone else just waiting
in line to buy those stocks when they come up for sale?

I know nothing of the Stock Market but isn't that how it works?

I cash in my stocks and they become available to the next person that
is hopeing they go even higher, correct? Why would this mess up the banks?

Thanks, lewscrew

You are right, it will be a 9/11 type move but not bad. After 9/11 happened, people got scared and sold their stocks when the panic happened. Smart investors bought their stocks at the cheap rates like Walmart and so forth and made a huge profit. If they would of held they would of rebounded all of their loss and still would of made money. Our market is in it's highest stage in hystory. The Dow closed at a record high yesterday above 13,000 points. So if there is a selloff, when the market settles which takes a few days then investors will come right in and buy their stocks at a cheap rate and raise their prices back up like our market is now.

Originally Posted by readytogo

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Is this true? We, as foreigners, cannot invest in the Vietnam SX? This is great! I'm getting excited! This makes the Iraq/Vietnam SX comparison theories null and void! BAM!

Yes, we can't play their market right now. Just imagine, their rate is between 15,000-16,000 which is .000066. Iraq is 13 times higher than Vietnam. Just imagine just dumping $1000 into one of their stocks. You would buy 16,666,666 shares. If you spent say $10,000 which is nothing for the market then you alone would run up their stocks to 100-1000% and would then sell and watch it crash within minutes. I watch stocks do that everyday. Most penny stock runs last 30 minutes to maybe 2 hours and they run from 50-1000% in that short amount of time.

Originally Posted by strongtower

Yes, we can't play their market right now. Just imagine, their rate is between 15,000-16,000 which is .000066. Iraq is 13 times higher than Vietnam. Just imagine just dumping $1000 into one of their stocks. You would buy 16,666,666 shares. If you spent say $10,000 which is nothing for the market then you alone would run up their stocks to 100-1000% and would then sell and watch it crash within minutes. I watch stocks do that everyday. Most penny stock runs last 30 minutes to maybe 2 hours and they run from 50-1000% in that short amount of time.

Strongtower, If this is a daily occurrence here in the U.S and it is a very bad thing, then why do the participants of the US Stock Exchange allow this to happen and what makes it so unlikely for the ISX to do the same? If we do it here in the US then why not in Iraq? I'm not being argumentative, just very curious.

Originally Posted by MunnyBaggs

I agree with danny51 and Strongtower about the issue of ISX opening. Keep in mind that the ISX is strongly comprised of Iraqi banks. Right now the currency exchange rate is .0008 cents (or 1249 IQD to 1 USD). If it stays that way when ISX opens a large (say 1:1) Re-val would completely crash the ISX. Most ISX stocks in USD value are in the pennies level. If it were to Re-val 1:1 AFTER the ISX opens to Foreign investment there would be a massive sell off. There would not be enough (or any) buyers to take up the slack. It would bankrupt nearly every Iraqi bank. Thus they have to delay ISX opening or make some movement in exchange rate. I've crunched the numbers and don't see any alternative.

Munny, what about this? If the ISX opens without an RV, Lets say one share of bank stock sells for one dinar, or .0008 USD. Lets assume an investor buys 100,000 shares..his cost USD $80. Now, lets assume the banks have sold 1,000,000,000 shares (one billion) at this price and there is no RV. Wanting to capitalize more, the banks do a reverse split, giving the investor one share for every 1,000 he owns. His $80 investment is still $80, but he now has 100 shares worth $.08 USD each.

The investor has stock that has risen in value, the banks now have more shares to sell at the higher price of $.08 so they can amass much more money and look like a better investment to the next generation of buyers. This will benefit the banks, but not so much the original investor, nor will it do anything for the Iraqi people, as far as purchasing power is concerned. However this is a very conservative growth plan that would greatly improve the chances of the banks being successful.

Additionally, I recall posting about a call I received from an Iraqi delegate at the Salt Lake meeting last December, who told me there would be nothing happening with the dinar until the banks had all gone electronic. The above example would allow them the time and money to do just that, hence an RV prior to opening the ISX may not neccessarily be in the cards for us.

Once the banks are online, have massive dinar reserves obtained by selling stock on the cheap, and more available due to the reverse split, an RV would take them way over the top and then the people of Iraq could share in the wealth. But it would be the 'big boys' who get first dibs on the spoil...not unlike everywhere else around the globe.

An RV prior to the opening of ISX would increase the purchasing power of the common man in Iraq, allowing them to participate in buying stocks, but then the banks would have to raise the price of shares simultaneously, so as not to get bought out cheap. The banks would still benefit, but not neccessarily as well.

Based on the above, what remains to be seen is exactly how important is sharing the wealth with the common man to the big players in Iraq.

Your view?

Originally Posted by readytogo

Strongtower, If this is a daily occurrence here in the U.S and it is a very bad thing, then why do the participants of the US Stock Exchange allow this to happen and what makes it so unlikely for the ISX to do the same? If we do it here in the US then why not in Iraq? I'm not being argumentative, just very curious.

There are actually two different markets.

1. The Dow and Nasdaq-we call them the big boards
You could do that to them but their stocks cost way too much to run. If a stock is $7 a share then it would take $700,000 just to buy 100,000 shares. Plus it is highly regulated.

2. OTC and Pinksheet stocks-they are what we call pennystocks.
The SEC doesn't care about these stocks and allows shorts and ceo's to scam us by writing bogus pr's.

This is the point I am making about opening the ISX up without a good rate. The problem isn't them being regulated. It's selling high level stocks for pennies. You can't buy any bank shares in the middle east for less than $7.00 Wharka has like 30 million shares total. So a foreigner or simply one person could buy all their shares for around $100,000. I have seen one of our guys literally spend $400,000 of his own money on a stock in one day while it was running. We must think, this is suppose to benefit Iraq. How does it benefit them when we will now own them. I was told that a person with 100 million dollars and the backing of a bank could buy the whole country at their current rate.

Originally Posted by bluezzguy

I don't think any of us want another delay.. but if it is because they want to rv before the ISX opens up but are not ready yet, I'd accept that. I may be looking through dinar colored glasses, but I'd take another delay as being related to needing to rv before opening the ISX to foreigners.

Looking back, have to wonder if previous delays of the ISX were because of this very reason.

Just my opinion.. no link, not even an educated guess:)

Randy

Maybe however the previous dates were all approximate dates..never have they had an exact date like this !!! I see no delays !!! and I see an RV before it opens !!