Map Technology - persistent insider buying

this is a curious phenomenon. the non-exec chairman David Lee & his fund, Ferrell, continues to buy Map Technology stock. I read abt the trend at www.nextinsight.net/content/view/728/60/ Since then, i hv noted their continued buying. Is this really a bargain stock? Map Tech\'s biggest customer is Western Digital. OK, WD was still doing fine up to Sept, when it reported Q3 results. But we all know that markets and consumers half-died subsequently. Demand for hard disks is bound to fall in the months ahead becos PC sales are going down.

Jurong Technologies Industrial Corpn has now emerged as a seller, or party pooper. It sold some shares from the lot that it received in a sale of a subsidiary. Why sell? info.sgx.com/webcorannc.nsf/37e9d50ee377...01f6d89?OpenDocument

Bad bad overhang of MAP shares owned by Jurong Tech, which is going kaput. DMG report offers some interesting insights and twists though, as follows: Special dividends of 7.8 S¢/share? We expect MAP’s capex plans for FY09 to be suppressed after taking into account the several acquisitions it had already made during 2008. Furthermore, we note that this is inline with the current outlook for the industry, given that several local HDD contract manufacturers that we spoke to are also reining in on capex as they focus more on strengthening their balance sheets rather than growth due to the global economic downturn. We therefore believe that it is possible that MAP may choose to distribute the proceeds from the sale of M&J as dividends which, according to our calculations, translates to 5.2 US¢ per share. This alone equates to a very attractive 27.4% dividend yield which does not even include its usual year-end dividend payout.

in a financial crisis, everyting drops dead - so Ferrell & company is no exception. The M&J deal fell thru, there was nothing special abt the div payout. and now Jurong Tech has thrown away all its MAP shares in stead of facing up to the rights issue for which they have no money really.

the stock has soared . Now 27 cents. What a mystery! why did it soar? Rights issue coming up. MAP shares will trade “ex-rights” on 21 August 2009 from 9.00 a.m.

the stock was 26 cents , then went x-rights. theoretical price wld be 6 cents today , but look at it - fella closed at 9 cents. Up 50%! the market siow? Or the stock is really lovable?