I was surprised by the strong volume in Ellipsiz shares and also its price movement - up more than 30% over the last few days. There were 86mn shares traded on Friday April 23 and another 74mn shares traded yesterday. I was looking at the SGX for any announcement of corporate action but found nothing.
A broker also called me yesterday to say he had heard a rumour of a possible takeover - but that is still pure speculation for now.
I can only rely on fundamentals to assess Ellipsiz with the speculation if it comes through being regarded as a bonus. Based on my last meeting with management which was just a few weeks ago (you can find it in my Blog here).
I recommended the stock in June 2009 with a price target set at NAV of S$0.175. Given the recent macro guidance from management of a moderate recovery and in the absence of any other news or developments, I think its time to take profit on the stock at these levels if there is no other corporate development.
I am also taking Ellipsiz out of my stock picks as it has hit my target of $0.175 giving a return of 59% since it was recommended.
