New info as posted by Boon at valuebuddies.com:
On 21 May 2009,Ye Sanzhi, purchased 32,175,000 ordinary shares at the price of SGD 0.125 per share.
On 01 June 2009, he became an Executive Director of the Company.
www.eratatgroup.com/v2/files/rele...2May09.pdf
4 years and 3 months later, after 19 consecutive profitable quarters by Eratat, Ye Sanzhi sold off the same amount of shares he owned in the Company at SGD 0.138 per share, resulting in a capital gain of SGD 418,275
Overall, Ye Sanzhi managed to make a positive return on his investment. In addition to the capital gain made at disposal, over this investment period, he also collected dividend payout from Eratat estimated to be about RMB 4.56 million.
Nevertheless, questions remain
1) As an Executive Director (who is also a substantial shareholder) – why would he dispose of his stake in the company ENTIRELY from 6.77% to zero?
2) Why would he cashed out at such a low price (of SGD 0.138 per share) - considering that net cash per share of Eratat is more than SGD 0.20 ?
3) Why would he cash out at this point in time – not long after the successful issuance of the bond and warrant? Interestingly, chargers had been made over shares of Lin Jiancheng under the bond/warrant issuance, but not over shares of Ye Sanzhi.
4) Was this a “rational” or “irrational” behavior on the part of Ye Sanzhi ?
5) What is the probability of an “insider” behaving irrationally with his entire stake (interests) in the company?
6) As an “insider”, does he know something that minority shareholders don’t?
7) Who was at the other side of the trade – the buyer of this off-market transaction?
(Not Vested)