It seems a logical conclusion that the recent selling of Action Asia shares by insiders might be due to their awareness of the likelihood of Action Asia reporting a very bad set of results for 4Q10. The telltale sign was that Action Asia’s revenue and profits had been on an up trend and it has been paying increasingly higher dividends each year, yet its share price remained unusually stagnant and depressed when many other penny stocks were experiencing upward revisions of their share prices during the period of improving market sentiments for penny stocks.
A closer examination of Action Asia results reveal that the company’s revenue for 4Q10 was S$60 million [4Q09 – S$72.4 million] while the Profit Attributable to Equity Holders was a low S$698,000 [4Q09 – S$4.8 million] or just 14.5% of 4Q09. EPS for the quarter was only 0.18 cts as against 1.2 cts in 4Q09. EPS for FY10 is 5.26 cts. Could this be the start of more bad news?
Parent company bought some more, just announced altogether 2.675 million shares. No wonder the stock is firm at 15 cts. The buyer put up a defence wall --- u throw your shares at it if you are desperate. Question now is will stock move up to 17-20 cts?
Last time, CIMB had 40-c target. Wahpiang, now blue black. [url=http://www.nextinsight.net
/story-archive-mainmenu-60/903-2010-/3164-action-asia-what-analysts-say-now]ACTION ASIA, SATS: What analysts say now....[/url]
There is a strong cushion of support at 15 cents.
Anybody wants to exit can sell a few hundred lots to the buyer(s).
Wonder if the buyer is the parent company again..... If yes, why? Manufacturing for Philips is not going to be a bed of roses this year, given the economic slowdown. So why is the parent buying stock?
