This is a 34% premium over SG stock price of 25 c. Somehow, Singapore investors are unwilling to pay up for S-chips. Shame on the stoopid/greedy management like China Milk, China Gaoxian, etc for sowing this mistrust among us.
Just 2 mths ago, a substantial shareholder sold down it's stake and pushes the price to 9 cents and intraday low of 8.7 cents. Was kicking myself when I withdrawn my order of 9 cents after I watched in horror that is became a multi bagger in just 2 months. However, something is not quite right. I told myself, maybe this fund needs cash, that's why it cashes out, now it's director who is the second biggest shareholder is selling 4 million shares. Small compare to his direct and indirect stake. But why the rush to sell? It's share buyback mandate is really for show as their agm will be just a month or so, if there are not buying back their shares at 9cents and offloading it high price. Buyer beware... Things that can go wrong: second tdr canned. Net margins drop further, lower than the 5 plus percent interest that they are paying banks... At such price, the risk might not be worth the return...
Me puzzled too by the selling. The seller is Yeung Wai Wing, a non-executive board member and substantial shareholder of Hu An.
From my research, he owns 100% of of Goka Limited, a fund.
Goka sold Hu An shares as far back as Nov 2010, and it looked ok at that time cos it's natural to take some profit as he was selling at S$0.42 per share.
But why continue to sell down currently?
This kind of people do a lot of reputational damage to the company -- how can a board member dump shares like dumping rubbish?
Unless he knows something rotten within the company, in which he case he is doing insider trading. Either way, Yeung Wai Wing should be grilled at the next AGM.
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