IMO, the GOI still doesn't have their act together sufficiently for a Reval, now.
Quote:
Originally Posted by
PaulieThaGreat
I predict that there will be no reval before the ISX opens. Please post your input and what your feelings are about the ISX opening and the relevance to a revalue of the Iraqi Dinar?
(Note: Lets hear all opinions, negative and positive. No bashing.)
~PaulieThaGreat
I believe a significant Reval is inevitable, at some point, but they just don't have all their ducks in a row, yet.
I also hope I am wrong.
No, I don't have a Warka account, yet.
Quote:
Originally Posted by
Bungalobill
Dont tell me you sent all your paper to warka?
I have all my Dinar in my safety deposit box.
Chalk it up to a lack of understanding...on your part
Quote:
Originally Posted by
PaulieThaGreat
I predict that there will be no reval before the ISX opens. Please post your input and what your feelings are about the ISX opening and the relevance to a revalue of the Iraqi Dinar?
(Note: Lets hear all opinions, negative and positive. No bashing.)
~PaulieThaGreat
If it does not revalue before the opening of the ISX to the world, they are merely setting their self up for a tremendous fall. If I were to purchase stocks today (August 2nd for that matter) that have a par value of IQD 3, which is the equivalent of less than one U.S. cent all total, and then shortly afterward or even 6 months later the currency "reverted to former rates" as in $3.22, who in their right mind would not sell ALLtheir stock and take the profits? Answer is, anyone with the savvy to invest in the stock market, to begin with, would understand the benefits of cashing in their shares. When you see an arrow pointing downward on a stock market index, that is an indication that more shareholders sold than bought. More than likely, should the revalue take place after the ISX opens to the world, that is exactly what you would see. I know, I, for one, would sell my holdings and not even look back. If that takes place, obviously, portfolios lose value and everyone suffers. If portfolios lose value, regardless of how much, it must first regain any loss before any positives in the market can have their full effect...no matter how big the portfolio. It would be a long time before the market would regain its standing for those reasons already mentioned, plus the fact that the "companies" that those stock shares would be representing are located in a part of the world that seems to continually be plagued with political and social unrest. The "world" at large would take years before any "trust" would be strong enough to invest again. Oh, by the way, I'm registered with the NASD.
Edit: I have removed the Font type & reduced the size as well, it is horrible for reading!!! - YB.
If an Iraqi company is worth $50 million U.S. Dollars now, a reval won't change that.
Quote:
Originally Posted by
boomcreek
If it does not revalue before the opening of the ISX to the world, they are merely setting their self up for a tremendous fall. If I were to purchase stocks today (August 2nd for that matter) that have a par value of IQD 3, which is the equivalent of less than one U.S. cent all total, and then shortly afterward or even 6 months later the currency "reverted to former rates" as in $3.22, who in their right mind would not sell ALLtheir stock and take the profits? Answer is, anyone with the savvy to invest in the stock market, to begin with, would understand the benefits of cashing in their shares. When you see an arrow pointing downward on a stock market index, that is an indication that more shareholders sold than bought. More than likely, should the revalue take place after the ISX opens to the world, that is exactly what you would see. I know, I, for one, would sell my holdings and not even look back. If that takes place, obviously, portfolios lose value and everyone suffers. If portfolios lose value, regardless of how much, it must first regain any loss before any positives in the market can have their full effect...no matter how big the portfolio. It would be a long time before the market would regain its standing for those reasons already mentioned, plus the fact that the "companies" that those stock shares would be representing are located in a part of the world that seems to continually be plagued with political and social unrest. The "world" at large would take years before any "trust" would be strong enough to invest again. Oh, by the way, I'm registered with the NASD.
If each share of your stock is only worth less than a U.S. penny today, that's what it would be worth after a reval tomorrow.
IMO, there won't be any huge profits made in the ISX as the result of a significant reval. They'll just express each stocks value in a lower amount of Dinar or Fils to reflect the Dinar's new strength against the U.S. Dollar.
An investor in the ISX won't lose any portion of their investment. The value of their holdings will stay the same.
What I believe will be the driving forces behind a reval are the desperation of the Iraqi people and action by the U.S. Congress to withhold the support of the U.S. Taxpayers. JMO.
Stock that is presently worth less than a U.S. penny might go up to a penny?
Quote:
Originally Posted by
boomcreek
When market conditions open up in Iraq, the value of the services or goods your company markets will also open up...i.e. increase in value. When people have the money to purchase goods, demand will rise. When demand goes up, supply will go down due to increased purchases, when supply goes down, the value of what is left in supply will likewise go up. In other words, what use to be worth 3 dinars, tomorrow could in essence be worth double, triple, or even quadruple the current value. All the market forces play a part in driving the price higher.
Yes, I understand that stock that's worth a fraction of a U.S. penny could go up to a U.S. penny, but do you see that it will still only be worth a single, solitary U.S. penny after a 1 to 1 reval?
A 1 to 1 reval will make cash Dinar worth 1,000 times their present value, while the value of most of your stock will still be a U.S. penny or less per share.
What's so cheap about paying $36 million U.S. for a company in a war zone?
Quote:
Originally Posted by
rickey1
well to start off with, i dont understand how they are going to open the isx up over there. people will be buying into companies really cheap and for as the stock going up on these companies, you need to have a stable country for this to happen or you're just spending money for nothing(hoping to hit the big one). i think they need to revalue the money again to have a stable economy over there so their money will be worth something. the media doesnt tell you about all the good stuff thats going on over there with rebuilding iraq all they tell you is the negative.
keep your heads up and hope for the big one
If a bank, Warka for instance, as another member stated has 12 billion shares of stock in circulation at 3 Dinar per share, that's a value of $36 million dollars U.S..
What's so cheap about that?
They're in a war zone.
You couldn't even visit the building, if you bought it for $36 million.
Well, you could. It's just that your chances of surviving the visit would be extremely low. :wink:
Stock is one kind of an investment and currency is another.
Quote:
Originally Posted by
Xman1
It seems to me that a downward revision of the value of stock in an upward revaluation is the same as a lop. Yes?
Once you've bought stock, you no longer have Dinar. You have shares of stock.
The value of your investment is based on the value of the company you invested in. The value of your stock doesn't have anything to do with the value of the Dinar.
If the value of your stock is expressed in fewer Dinar, after a significant reval, in order to reflect the new strength of the Dinar vs the U.S. dollar, you won't have lost anything. You just wouldn't earn the windfall profits that Dinar holders would.
This has all the markings of good death and taxes rant.
Quote:
Originally Posted by
Lucky142
It really amazes me how many people still think the Stock Market (any) is investing. Sorry folks, it is not investing as it is speculaton and that is either Calculated Risk for those who understand it, or just plain Gambling for those who have no clue.
If the Stock Markets were investing, your certificates would have guaranteed returns. Show me any stock certificate that has a written guarantee.
I'm open-minded. The Iraqi "Speculation" Exchange works for me. :biggrin: