|Stock||Buyer||Purchase date||No. of shares||Share Price||Shareholding|
|GuocoLeisure||GuocoLeisure Assets Limited||14 Sept||721,000||50.812 cts||770.3 m
|11 Sept||250,000||52 cts|
|10 Sept||300,000||51 cts|
|Hongwei Technologies||Maxpro Global Limited||18 Sept||1,084,000||24.816 cts||141.8 m
|11 Sept||3,000,000||24.5 cts|
|Abterra||General Nice Resources||15 Sept||10,900,000||5 cts||2.1 billion (40.48%)|
GuocoLeisure: It has come under accumulation by GuocoLeisure Assets Limited, in which the chairman of GuocoLeisure, tycoon Quek Leng Chan, has a deemed interest.
From the 50-52 cent range that GuocoLeisure Assets recently bought the shares at, GuocoLeisure’s stock price has risen to around 58 Singapore cents, but it’s still substantially below the Net Tangible Assets of 63.6 US cents (90.3 Singapore cents).
Tempering investors’ confidence in the stock is the regular selling of GuocoLeisure shares by Third Avenue Management. The latest sale was on Sept 4 and involved a whopping 18.6 million shares, bringing its shareholding down to 10.28%.
For more on GuocoLeisure, read SEBASTIAN CHONG'S property picks: Metro, Ascendas India, GuocoLeisure
Abterra: It has a parent called General Nice Resources, which has periodically been buying its shares while the market seems lukewarm towards it.
Abterra’s business model is in the midst of transformation. From being a trader of commodities, it has also become an owner of mines, particularly coking coal mines in China (see table below).
Lately, it has acquired an iron ore processing facility in Indonesia, taking over have some long term contracts with mine owners that will supply them with iron ore.
The iron ore supply is of a low grade which Abterra will process and increase its iron content before selling it off.
|Assets acquired||Abterra’s stake||Acquisition date||Consideration|
|Zuoquan Yongxing Coal Co. (coking coal mine)||15%||Aug 2007||RMB45.75 m|
|Shanxi Taixing Jiaozhong (coking coal mine)||49%||May 2009||RMB188 m|
|Shanxi Lingshi Fuyuan Coal (coking coal mine)||30.6%||Aug 2009||RMB234.8 m|
|(Unnamed iron ore processing facility, Indonesia)||100%||Aug 2009||US$7.3 m|
Our recent story: ABTERRA makes 3rd coking coal mine acquisition
Hongwei Technologies: It continues to enjoy buying by Maxpro Global, which is 100% owned by the spouse of the CEO.
Its latest buys are 3 million shares at 24.5 cents and 1.084 million at 24.816 cents.
Maxpro now owns about 10 percentage points (ie, 63% now versus 52.6%) more stock than as of March 2008, the cutoff date for the shareholder list for the 2007 annual report.
The stock currently has a historical PE ratio of 4.1, which would be lower if the company’s earnings recover this year and next.
There are a few discomfiting things about Hongwei: It does not have a corporate website (we couldn't find it, anyway), and its annual reports don't carry pictures of the business operations nor the board of directors nor the senior management.
One positive, though, is that a key shareholder is Tembusu Growth Fund, a Singapore fund with luminaries on board.
For more, read our recent story: Insider buying: HONGWEI, REYOUNG, SINGAPORE REINSURANCE