Link to original video by Money Chat Thailand

รู้ทันเจ้าของเล่นหุ้น ทำรายย่อยเจ๊ง - Money Chat Thailand : ดร. นิเวศน์ เหมวชิรวรากร

Summary of "รู้ทันเจ้าของเล่นหุ้น ทำรายย่อยเจ๊ง - Money Chat Thailand : ดร. นิเวศน์ เหมวชิรวรากร"

Short Summary:

This video discusses the practice of "cornering" stocks in the Thai market, where company owners or large investors manipulate stock prices by buying large amounts of their own shares, often using borrowed money. This practice can artificially inflate the value of the stock, leading to high PE ratios and ultimately causing a crash when the bubble bursts. The video highlights the dangers of this practice for retail investors and emphasizes the importance of analyzing a company's fundamentals and avoiding speculative investments.

Detailed Summary:

Section 1: Introduction and Background

• The video begins by discussing the increasing prevalence of company owners using their own shares as collateral to borrow money and invest in their own companies.
• This practice is described as a form of "wealth management" and is often used to increase the perceived value of the company and attract more investors.
• The speaker, Dr. Niwes, explains that this practice, while seemingly beneficial in the short term, can lead to a dangerous bubble that ultimately bursts, harming retail investors.

Section 2: The Mechanics of Cornering Stocks

• Dr. Niwes explains how company owners can manipulate stock prices by buying large amounts of their own shares, often using borrowed money.
• This practice artificially inflates the stock's value, creating a false sense of growth and attracting more investors.
• The speaker emphasizes that this practice is not based on the company's actual fundamentals but rather on a manipulation of market sentiment.

Section 3: The Risks and Consequences of Cornering Stocks

• The video highlights the dangers of cornering stocks for retail investors, as they are often unaware of the underlying manipulation.
• When the bubble bursts, the stock price crashes, leaving investors with significant losses.
• Dr. Niwes uses the analogy of a "black swan" event, a highly improbable but impactful event, to illustrate the sudden and unexpected nature of these crashes.

Section 4: Identifying and Avoiding Cornered Stocks

• Dr. Niwes emphasizes the importance of analyzing a company's fundamentals, such as its earnings, PE ratio, and industry outlook, to identify potential cornered stocks.
• He advises investors to be wary of companies with high PE ratios that are not justified by their fundamentals.
• The speaker warns against following market trends and instead encourages investors to focus on long-term value investing.

Section 5: Ethical Considerations and Recommendations

• Dr. Niwes expresses his ethical concerns about cornering stocks, arguing that it is a form of deception and exploitation of uninformed investors.
• He strongly discourages company owners from engaging in this practice, suggesting that it is ultimately unsustainable and harmful to the market.
• The speaker recommends that investors focus on long-term value investing and avoid speculative investments in companies with questionable fundamentals.

Notable Quotes:

• "This is a game of creating wealth, creating liquidity, making your own stock popular, so it will have a lot of value."
• "This value comes from cornering, not from the actual fundamentals of the company."
• "It's not about the company's performance, it's about the illusion of growth."
• "The black swan event is when the bubble bursts, and the stock price crashes."
• "Don't be fooled by the hype, focus on the fundamentals."
• "It's not ethical to corner stocks, it's a form of deception."
• "Long-term value investing is the best way to avoid being caught in a cornered stock."

Overall, the video provides a valuable insight into the dangers of cornering stocks and the importance of responsible investing practices.