China New Town

Within 9 days, China New Town has gone up 0.9 cents = 13.8%.
The volume pushing it up is strong. Just my 2 c
[hr]
[viviene 06-02-2012]:

6.5 cents > China New Town is among top volume plays this morning ..... rotational play into the various S-chips.

Broker said that China New Town came for a roadshow in late March and met up with several analysts. Looks like this stock got some play coming up. The company is trading at a big discount to its RNAV.

Last done was 7.8 cents .

The board of directors (the “Board”) of the Company wishes to inform its shareholders that
the Company is currently in discussions with several independent third parties (the
“Investors”) regarding the possible investment in the Company in the form of subscription of
new shares. As at the date of this announcement, no agreements have been reached and
neither any non-binding letter of intent nor binding agreement has been signed by the
Company. It is uncertain whether subsequent discussions with such Investors will lead to a
materialization of the possible investment in the Company.

Oh my goodness, why such a big discount being offered to the investor. No doubt, big brand name investor taking 40% stake. Still .....

I think the stock price will correct today

The stock price has surged instead of correct. HKD 0.246 = SGD 0.039 based on HKD 1 = SGD 0.16. That great amount of discount to the stock price of SGD 0.114.

Tonight's announcement by China New Town is quite comical. It's trying to tone down the views / forecasts of the chairman. The announcement is just trying hard to make it sound like the media interview didn't give any material information.


If you think about it, do you think the chairman didn't have a leg to stand on?

I read it as being very positive, and so I am going to be buying China New Town shares. LOL

U can read the CNTD announcement at
info.sgx.com/webcoranncatth.nsf/VwAttach...tion.pdf?openelement