Any Thoughts?

[coorslite21]

Noticed that in the past 4-5 days Salaam........BDSI......the bank that has been affiliated with HSBC has dropped like a rock.  Down 22 points alone today.  Have any of you seen any news about this.  I know in 2013 HSBC was rumored to be getting out of Iraq altogether and then it was thought to be selling their interest in BDSI

 

They have lost half of their value in 5 days.........perhaps something going on, or perhaps just another hiccip with the ISX trading platform????

 

Thoughts?

 

 

http://www.isx-iq.net/isxportal/portal/companyprofilecontainer.html?companyCode=BDSI

[TrinityeXchange]

the problem with trading on the isx is inability to trade on fundamentals; we just don't have access to company news.  personally i have always traded from technical analysis and continue to do so on the isx.  

 

technically - bdsi went from 0.44 to 0.76 between Sept 15-29th, an increase of 73% with good volume.  it appears that everyone took their profits.  if i were in that stock, Lord knows i would have taken my profits well before 73% LOL!  bdsi is not a strong performer and such its plummet from grace is expected.  had this been a strong performer like hbay (babylon hotel), i would probably still hold onto the stock after great returns.  recall hbay fell tremendously after it paid dividends to stockholders.  it even fell to as low as 34 points [aug 27th] and sat there a few days (great time to get in for those waiting for major play).  well it climbed to 59 points (up 73.5%) and although a retraction was expected which it did to 50 points, it remains a strong hold.  

 

the one thing about the isx i have noted from observation is that certain stocks will typically always perform well.  others, it is best to get in and get out.  bdsi being a prime example.  

 

some strong performers - HBAY, BBOB, SMRI, IRMC, IBSD

these should always be considered as buys whenever there is a dip in the market.

Edited October 5, 2015 by TrinityeXchange

[Antietam]

Trinity, you sound like a person knowledgeable in ISX trading. Here's my question. I know the iraqis will quite willingly take American dollars to buy ISX stocks, but can you redeem ISX stocks back into dollars, or do profits only translate into additional dinars? Being wary of Warka's dysfunction, I need reassurance that American investors in ISX can redeem dollars for iraqi stocks when we take our profits?

[TrinityeXchange]

Trinity, you sound like a person knowledgeable in ISX trading. Here's my question. I know the iraqis will quite willingly take American dollars to buy ISX stocks, but can you redeem ISX stocks back into dollars, or do profits only translate into additional dinars? Being wary of Warka's dysfunction, I need reassurance that American investors in ISX can redeem dollars for iraqi stocks when we take our profits?

Hi Antietam.  I fully appreciate your concern and wish that I could tell you firsthand the level of ease at retrieving your money from the market.  Unfortunately I have never requested money be transferred the other way (from Iraq to the States).  I have read where others were success at retrieving money though but I cannot confirm this personally.

 

For your own edification, and in case you did not already know, here is how investing in Iraq works.  

1. An investor will wire money to their broker 
2. The Trade Bank of Iraq receives the wired funds and converts the currency into IQD
3. The IQD is deposited into an account controlled by the broker
4. Upon receiving an order from their non-Iraqi client, the broker either buy or sells stocks
5. The broker is required by ISC regulation to report to the client an updated status of their account (money and stocks)

Hope that helps.  

[Antietam]

Trinity, I am still confused about this. If you are an american, an I am assuming that your are, I imagine at some future time you will want to convert your ISX profits which are in dinars, into US dollars so that you may redeem your profits. Short of flying to Baghdad, how can you currently do this? Or are you assuming (hoping) that at some future time the ISX will allow interconnection of dinar to dollar transactions. If your profits are stuck in iraq in the form of dinars isn't that sort of false security if you can't get your dollars back? It doesn't seem any different than Warka bank. Help me out here.

[TrinityeXchange]

Trinity, I am still confused about this. If you are an american, an I am assuming that your are, I imagine at some future time you will want to convert your ISX profits which are in dinars, into US dollars so that you may redeem your profits. Short of flying to Baghdad, how can you currently do this? Or are you assuming (hoping) that at some future time the ISX will allow interconnection of dinar to dollar transactions. If your profits are stuck in iraq in the form of dinars isn't that sort of false security if you can't get your dollars back? It doesn't seem any different than Warka bank. Help me out here.

GM Antietam.  Yes I am American and let me take a stab at adding some clarity.  When a non-iraqi investor sells their stock, it is redeemed in IQD.  When notifying your broker that you would like to wire some of your funds back to your bank account in the States, the brokerage will initiate the process typically with the Trade Bank of Iraq.  The bank will convert your dinar to usd at the official CBI rate (last I knew it was 1166).  The money (denominated in usd) will be wired at a wiring fee.  

 

Warka is an entirely different situation.  Their clients' funds are held up due to bankruptcy issues that appear to be finding some resolution.  Many of us steered clear from investing through Warka and are not having as many issues as those who went through Warka.  

 

Does that help?

[Antietam]

Thanks, Trinity. That clears it up. So there is an open exchange between the ISX and the US in dinars into dollars. I only frown upon those situations where it is only one way, ie dollars to dinar.