iFAST share price faces risk of trailer fee ban?
NDP Special Offer! Investors must have that “uh-oh” feeling. iFAST share price looks set for an explosive thrashing following the revelation of net loss of $2.69 million recorded in 2QFY2022. The net loss was a complete reversal from the $7 million net profit recorded in 2QFY2021. The management claimed that the bizarre net loss was attributable to the one-time estimated impairment allowance of $5.2 million from its exit of iFAST India Holdings Pte Ltd (“iFAST India Holdings”). Nonetheless, investors wasted no time punishing the counter as it sank from $4.00 on 22 July to a low of $3.72 on 25 July.
In my blog, I have cautioned before that whenever a listed company announced its financial result in the middle of the night or over the weekends, you can be sure like hell that the result is going to be awful. Indeed, this was what happened to iFAST when the Group released its 1HFY2022 financial result on 23 July 2022 (a Saturday morning). In the good old days, such a strategy could help to break the fall of iFAST share price. However, with the proliferation of financial blogs in Singapore, such trick may not work.
What goes up must come down. iFAST share price became stuff of legend among SGX stocks when the counter rocketed from $1.00 in 2020 to an incredible high of $10 in 2021. But the supersonic form of iFAST share price is simply not sustainable as the counter began to stall in 2022. The meltdown of iFAST was due to its misadventure in India. The latest India move to ban usage of pool account for mutual fund transactions followed the October 2018’s ban by the Indian authorities to ban upfront commissions for mutual funds.
In recent years, many countries are starting to ban sales …
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