Australian Hunter Hall Group had a stake of
7.41% (47,450,000 shares) in Qingmei before it decided to
add a further 89,000 shares on 28 & 29 Feb 2012. However, on 1 March 2012, the management had decided to
divest (instead of increasing) its stake and sold a total of 7,285,000 shares between 1 and 22 March 2012. A further 6,843,000 shares were sold from 26 March to 10 April 2012 bringing its stake to
33,411,000 shares or below 5%. Although the reason for their divestment is not clear, one could surmise that it could be due to the widespread negative sentiments prevailing against China stocks especially in USA & Canada, as to cause a Fund to divest a grossly undervalued stock at rock bottom price and at a hefty loss.
It is interesting to note that Hunter's remaining stake in Qingmei (as on 16 Apr 12) is being held under 3 Trust Funds (like Unit Trusts) namely,
Hunter Hall Value Growth Trust - 17,647,760 shares
Hunter Hall Global Ethical Trust - 11,038,890 shares
Hunter Hall Global Value Ltd - 4,724,350 shares
TOTAL HOLDING in Qingmei = 33,411,000 shares (4.91%)
Quotations of Hunter's Trust Funds can be found in -
www.hunterhall.com.au/prices.php
Although Hunter Hall Value Growth Trust holds the largest portion of Qingmei's share, this stake constitutes only a tiny fraction of its total holding size, which is
A$916 million. The value of the Qingmei holding is less than A$2 million or 0.2%
The Hunter Hall Group is obviously rebalancing its portfolio to
divest completely its stake in Qingmei
at a great loss. As the stock price of Qingmei has fallen far below its true worth and with Qingmei issuing a negative profit guidance for its 3Q12 results, those with negative mindsets see numerous "problems" in Qingmei and all the reasons to avoid this S-chips. However, those with positive mindsets (or "millionaires mindset" as Adam Khoo also puts it) see the
possibility of a great money making opportunity ahead. As Qingmei’s daily turnover seldom exceeds 5 million during this period, its price is certain to hit ultra low by the time Hunter Hall divested their last few lots of the shares.