Hotung should benefit from its pre-ipo investment of MStar. Pre-ipo investees usual make about 50% of their investments prior to IPO.
With the Taiwanese stock exchange in roaring mode, there should be more good news for Hotung in the coming months regarding their investments.
However, I seriously doubt that any corporate exercise will come out from this. Corporate exercise never happen in open market. If the shareholders are really keen to buy shares, they will negotiate with each other in private rooms, not in open market.
Cheers and a Happy 2011 to all...
Hotung bought back 4.517 m shares today at 13.5 cents. At this rate, the company is able to soak up any amount of shares being sold. The buying means only 1 thing - the stock has a lot of upside from here.....how about 20 US cents????
GOOD that hotung is consolidating and the price is stable at 13.5 cents. Weak and short-term holders need to clear out first before the next big push up for the stock price, which is clearly undervalued still.
The timing is also right for the consolidation - there is a black out period before the full year announcement next month. No share buyback allowed. Even substantial shareholders who are linked to the management should stay away as they possess material info on the FY10 performance.
After results announcemen, I would expect this undervalued stock to rise to 18 cents.
Proven to be rock solid - steady at 13 cents even when the blue chips and S-chips all correct.
Can't wait for results to come out and the dividend proposed. Share buyback should resume.
