A previous article last week (Insider buying: Stepping up) focused on major transactions by insiders. The biggies were the focus, given the numerous purchases reported by a wide range of companies.
In this article and a few more which are planned, we look at the small caps, which may have interesting fundamentals or initiatives.We start with Best World International and China New Town Development Company.
At Best World, its co-founders stepped up to buy 1.3 million shares in total over just two days.
Chairwoman Doreen Tan bought 100,000 yesterday (Sept 22). CEO Dora Hoan didn’t but a member of her immediate family, Li Li Hui, bought 100,000 shares. It was her maiden purchase.
Doreen and Dora already own sizeable chunks of the company.
Doreen's direct holding amounts to 12.2 m shares while her deemed holding is 75 m shares. Dora's are 12.0 m and 75.1 m shares, respectively.
Percentage-wise, they collectively own nearly 50% of the company.
Best World |
Date of purchase | No. of shares purchased | Value/share (S$) | Total value (S$) |
| Dora Hoan |
18 Sept | 100,000 | 0.21 | 21,000 |
| 18 Sept | 500,000 | 0.26 | 130,000 | |
| Doreen Tan | 22 Sept | 100,000 | 0.24 | 24,000 |
| 18 Sept | 100,000 | 0.21 | 21,000 | |
| 18 Sept | 500,000 | 0.26 | 130,000 | |
| Li Li Hui | 22 Sept | 100,000 | 0.23 | 23,000 |
The historical financial ratios for Best World at 22.5 cents, which was yesterday’s closing price, are:
* Dividend yield: 14.3% (based on 3.212 cents a share for FY 07, including a 0.8 cent special dividend).
* Interim dividend for period ended June 30 ‘08: 1.2 cents (which went xd today)
* PE based on FY 07 results: 3.4
In its recent half-year results for the period ended June 30, Best World reported net profit of $7.9 m, up 17% year-on-year. Other key numbers:
* Cash and equivalents: $25 m
* Market capitalization @ 22.5 cents a share = $46 m
* Net asset value per ordinary share as at June 30 = 23.41 cents
| China New Town | Date of purchase | No. of shares purchased | Value/share (S$) | Total value (S$) |
| Share buyback | 18 Sept | 200,000 | 0.06125 | 12,250 |
| 17 Sept | 200,000 | 0.06 | 13,000 | |
| Loh Weng Whye, director | 22 Sept | 100,000 | 0.07 | 7,000 |
Mainboard-listed China New Town Development Company Limited announced that its share buyback scheme had started on Sept 17.
The purchases were modest but who knows what quantities they will buy in the near term.
Another corporate development: UOB Kay Hian said it has a positive view on China New Town Development's convertible bond buyback and share placement, which were approved by shareholders. The buyback and placement will help reduce interest payments but will result in a loss of 220.7 mln yuan, the company said.
"This concluded exercise is a positive step forward," said UOB Kayhian. It has a "buy" recommendation on the stock with a $0.26 target price.
Recent story: BEST WORLD: Riedel Research's target price 70 cents.
