ISX Signifcance

Printable View

Show 40 post(s) from this thread on one page

14-07-2007, 11:45 PM
Icemann 30

great Discussion!

Quote:

Originally Posted by oldskiier

I'm not so sure about that .....I wouldn't seel off all my stocks sure I would sell some ...but with the onset of foreign investors coming on board..there will be enough to buy them up ....and as they would cuntinue to buy I would sell off more...till we seen maybe $25-$50 a share bank stocks....and then I would let my last million go ......and this would create a very strong market ...???

This is what people come to the forums for -- great discussions of interesting ideas on the trends (outcomes) which are possible with the ISX and this investment.

Thank you to each of you,

Ice:ro_emote:
15-07-2007, 12:12 AM
40plus

Quote:

Originally Posted by MunnyBaggs

It's an interesting theory, 40, but not so sure it will work with such a simple and immature market as the ISX. Every single stock on the market will do a reverse split? Plus no matter how you divide it up, the true value is still the same. If ISX opens up to foreign investment it will get an initial "bump" in value to start with. Keep in mind there are already thousands of investors holding in proxy plus the local investors as well. Bottom line is if I hold a stock that is worth 3 cents USD and Iraq Re-vals IQD to 1:1 my stock has appreciated well over 100,000% overnight. You can split it up any way you choose, but next day I'm selling to take my profit ASAP. It's human nature. Thousands will (split or no split) and you simply won't have enough buyers to offset such a massive sell off.

Thanks. So that leads me to think that rather than RV, all they will do is raise the stock prices prior to opening the ISX.
15-07-2007, 01:00 AM
celilo
Quote:

Originally Posted by MunnyBaggs

Bottom line is if I hold a stock that is worth 3 cents USD and Iraq Re-vals IQD to 1:1 my stock has appreciated well over 100,000% overnight. You can split it up any way you choose, but next day I'm selling to take my profit ASAP. It's human nature. Thousands will (split or no split) and you simply won't have enough buyers to offset such a massive sell off.

I totally disagree and believe that many are investing in the ISX for the wrong reasons. If you are interested in benefiting from an increase in the value of the currency, hold currency.

The value of a stock is related to the value of currency only to the extent that a company holds that currency. The expectation that a stock will increase in value because a currency has revalued is misguided.

You will make money in the ISX for one of three reasons:
1. When a company has grown in value because, for example, it's sales have increased.
2. Due to speculation by investors, who drive a stock up because they suspect the stock of a company will rise in value.
3. From the change in value of currency held by a company whose stock you own.
A revalue will not change the intrinsic value of a company with the exception of the change in value of a currency held.

If I buy a US stock with Canadian dollars, the stock costs the same as if I were a US investor and had purchased with US dollars. The Canadian dollars are simply converted at the exchange rate at that time. If the stock rises and I sell and make a profit, the profit is the same as for the US investor. It is clear that even in a market where the Canadian exchange rate varies widely, the profit on the US stock remains the same.

An investment in the ISX is a bet that the economy of Iraq will grow and that the value of companies stock traded on the ISX will grow in value as a result of increased business in a growing economy. I think that this is a very good potential investment, but it's promise has little to do with a revaluation of the dinar. In fact an investment in the ISX can be considered a hedge against a currency revaluation. The currency exchange rate could remain the same for perpetuity and you could be wildly successful in the ISX. Contrarily, the ISX could stumble along with stagnated values and you could be wildly successful by holding currency.

Currency and ISX investment represent two very distinct paths to investing in Iraq.
15-07-2007, 04:52 AM
neno

This is my view aswell.
Quote:
Originally Posted by celilo

I totally disagree and believe that many are investing in the ISX for the wrong reasons. If you are interested in benefiting from an increase in the value of the currency, hold currency.

The value of a stock is related to the value of currency only to the extent that a company holds that currency. The expectation that a stock will increase in value because a currency has revalued is misguided.

You will make money in the ISX for one of three reasons:

When a company has grown in value because, for example, it's sales have increased.
Due to speculation by investors, who drive a stock up because they suspect the stock of a company will rise in value.
From the change in value of currency held by a company whose stock you own.

A revalue will not change the intrinsic value of a company with the exception of the change in value of a currency held.

If I buy a US stock with Canadian dollars, the stock costs the same as if I were a US investor and had purchased with US dollars. The Canadian dollars are simply converted at the exchange rate at that time. If the stock rises and I sell and make a profit, the profit is the same as for the US investor. It is clear that even in a market where the Canadian exchange rate varies widely, the profit on the US stock remains the same.

An investment in the ISX is a bet that the economy of Iraq will grow and that the value of companies stock traded on the ISX will grow in value as a result of increased business in a growing economy. I think that this is a very good potential investment, but it's promise has little to do with a revaluation of the dinar. In fact an investment in the ISX can be considered a hedge against a currency revaluation. The currency exchange rate could remain the same for perpetuity and you could be wildly successful in the ISX. Contrarily, the ISX could stumble along with stagnated values and you could be wildly successful by holding currency.

Currency and ISX investment represent two very distinct paths to investing in Iraq.
I am not into the Stock thing, but OSW had always stated why do it there when you will be able to do it here. I see others state they have doubled their holdings Good for them. But I like the Currency holding part better. My mistake, maybe, maybe not.
15-07-2007, 04:55 AM
oldskiier

Quote:

Originally Posted by neno

I am not into the Stock thing, but OSW had always stated why do it there when you will be able to do it here. I see others state they have doubled their holdings Good for them. But I like the Currency holding part better. My mistake, maybe, maybe not.

There is nothing wrong with holding Dinar !!! I hold my share !! however after much thought on the ISX and holding off for what was almost to long ...I have decided ..it could be the BIG Dinar multiplier.....and yes one can get in latter but not on the Basement floor like now..... we will all do fine !! no bad choices here !!!!:beer:
15-07-2007, 02:52 PM
Icemann 30

Do the ISX or not!

Quote:

Originally Posted by oldskiier

There is nothing wrong with holding Dinar !!! I hold my share !! however after much thought on the ISX and holding off for what was almost to long ...I have decided ..it could be the BIG Dinar multiplier.....and yes one can get in latter but not on the Basement floor like now..... we will all do fine !! no bad choices here !!!!:beer:

I agree oldskiier! That's why when I found a local company I jumped in last week. I believe it will prove to be a good decision in the long run.

Ice

PS. Neno or others, if you want some info. PM me and I'll share.:ro_emote:
15-07-2007, 06:11 PM
RetMil

I wanted to minimize the number of things that could go wrong. This is the reason we only hold cash. The possible payout is a big enough incentive and the chances of failure while high are not as greatly influenced by individual short comings. As with the U.S. stock market, the market as a whole can rise while an individual stock can fall for many reasons. We invested a good amount in the dinar so that when it does rv, we well be more than set for life. We think that this is a some what streamlined approach. I am not knocking the ISX as an investment but rather it was not for us. We looked hard at it. We just thought buying more dinar would be better for us.
15-07-2007, 08:07 PM
dinarsnope

hey munnybaggs...i think i might be doing my math incorrectly, but could you show the math when 300 IQD / .02 USD what will 1 MIL IQD be worth in USD?? my math is figuring 1 MIL IQD will be worth $66.67??
Thanks!
15-07-2007, 08:08 PM
dinarsnope

munnybaggs question on math??

hey munnybaggs...i think i might be doing my math incorrectly, but could you show the math when 300 IQD / .02 USD what will 1 MIL IQD be worth in USD?? my math is figuring 1 MIL IQD will be worth $66.67??
Thanks!
15-07-2007, 09:31 PM
sleeper43

Quote:

Originally Posted by dinarsnope

hey munnybaggs...i think i might be doing my math incorrectly, but could you show the math when 300 IQD / .02 USD what will 1 MIL IQD be worth in USD?? my math is figuring 1 MIL IQD will be worth $66.67??
Thanks!

Lets crunch some numbers:fryingpan, 2 cents us = 300 NID, therefore, 1 cent US = 150 NID...

THUS

1 US dollar = 15000 NID

1000000/15000 = 66.67 rounded

66.67 x $1 US = $66.67

Looks like your numbers are spot on.

Good thing those numbers you got aren't reality. Bid difference between a 1 to 15000 exchange and a 1 to 1249 exchange that we currently have.

By the way, been an outside observer of this board for a while and a regular poster on the other board discussing this topic. Glad to officially meet y'all.:new:

On a side note, 1000000 NID = approxamately $800.64.

Show 40 post(s) from this thread on one page