BUYING OF shares by corporate insiders, as well as company share buyback programmes, have currently ceased as they enter into a blackout period ahead of the release of quarterly results. At NextInsight, we have written numerous articles featuring these purchases. Here are 2 more companies - Mewah and Ying Li International. It would be interesting to look out for the next set of financial results of these companies and others which had witnessed heavy stock buying by insiders. Does the insider buying hint of a strong set of near-term results? Or the buyers were looking further out to the horizon?
Mewah International: It has seen pretty strong buying in recent months by, particularly, its executive chairman and CEO, Dr Cheo Tong Choon, who has coughed up multi-million dollar sums for shares. He has done so at prices (around 42 cents) that are substantially lower compared to the start of the year.
Other big buyers are related parties from the Cheo family.
Mewah – which had a weak 1H with net profit down 35% to US$23.1 million - will release its 3Q results on Friday, 11 Nov, after trading hours.
The company, which sold shares at $1.10 during its IPO in Nov 2010, is a global agri-business focused on edible oils and fats. Its refineries and processing facilities are located in Malaysia and Singapore.
Mewah is one of the largest palm oil processors in the world by capacity. It produces a wide range of refined and fractionated vegetable oils and fats, principally from palm and lauric oil, and from soft oils, such as soybean oil, canola oil, sunflower seed oil and corn oil.
Ying Li International Real Estate: Its chairman, Fang Ming, has made three purchases in August this year, as the stock slid to below 30 cents from 44 cents at the start of the year.
Prior to that, he had bought shares in May 2010: 1 million shares at 42.75 cents each.
Ying Li is a niche property developer engaged in the development of Grade A office and high-end retail malls in the city centre of Chongqing, China.
UOB Kay Hian recently initiated coverage of Ying Li with a ‘buy’ and target price of 37 cents, which is a 50% discount to its RNAV of 73 cents a share.