IN A VOTE of confidence in his own company, Otto Marine’s executive chairman, Mr Yaw Chee Siew, has been on a buying spree of the company’s shares from the open market.
Mr Yaw holds more than 60% in the company and purchased 2.112 million Otto Marine shares over 12 to 18 Aug at an average price of 14.7 cents when the company announced a letter of intent of purchase for its AHTS vessel, the ‘Deep Sea 1’ for US$90 million.
Otto Marine had incurred a net loss in 1H2011 due to the reversal of profits recognized for the termination of sale contracts for two vessels.
Now that the Deep Sea 1 has found a buyer, the management is confident that the cancelled vessels can either be sold at market value or secure charter contracts, as they are of the same design specifications.
The ‘Deep Sea 1’ has received its maritime class certification from DNV.
Otto Marine last closed at 14.9 cents, just off its historic low of 13 cents.
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Local civil engineering contractor Tiong Seng is another company that has recently received a vote of confidence from insider purchases.
This week, Ong Geok Toe, the wife of its CEO, Mr Pek Lian Guan, purchased one million Tiong Seng shares from the open market at an average of 19.2 cents per share.
This was a few days after the company announced that its 2Q2011 net profit attributable to shareholders had jumped 38% year-on-year to S$9.2 million.
Tiong Seng's order books for construction and civil engineering projects based on secured contracts were a whopping S$1.1 billion as at 30 Jun, the majority of which is expected delivered over the next 12 to 30 months.
Its projects in Singapore include The Wharf Residences, Volari, Hotel at Upper Pickering Street, Hundred Trees, Treehouse and NUS Staff Housing at Kent Vale.
It also has a property development business in China for residential and commercial projects in second and third tier cities.
Despite China’s policies at cooling the property market and a possible downtrend in real estate values, three executive directors in Debao Property have collectively purchased 1.7 million shares in the China-based property developer from the open market on 11 Aug.
Also, the company incurred a net loss of Rmb 6.7 million in 2Q2011.
But at 13 cents apiece, their purchase price is a bargain compared to its IPO issue price of 43 cents just several months back in Apr.