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 is an integrated palm oil company focused on the production of edible oils and fats.

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.

Fang Ming, chairman of Ying Li International.

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.

Recent story: STX OSV is 'attractive, YINGLI revenue to grow 6-fold this year

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#3 Mossy 2012-02-19 18:04
Cut off disclosure has been performed. TARGET $1.20

-Captialand and CDL having quite a substantial presence in CHONG QING boost the market confidence. 
-CHONG QING is the largest city on earth.

Ying Li

(1) $700m syndicated loan - new stripes of finance indicating Going Concern of the entity in the coming years,

(2) IFC MALL commence operation. - Occupancy rate increase steadily followed by Office Space. Revaluation on IFC mall. Asset and Equity  increase,  2012 revenue increase, EPS increase, P/E ratio decrease and look attractive. Share Price increase. NAV increase.

(3) Land Acquisition - Revaluation of Land, Asset and Equity increase. Net Cash used in Investing activities UP and Offset by Loan. CASH position should increase.
Future growth/prospect increase

(4) Director also a substantial shareholder bought back shares and still on hold.

(5) Capitalized the Financing cost directly attribute to IFC - Net Profit increase.

(6) Selling of Office Space at a competitive pricing - Recognizing revenue on Year End 2011 or partially on 2012.

(7) Formation of REITs

Expect 1st quarter results to be better well off, due to San Ya Wan sales and presales of SOHO unit of Da Ping and IFC MALL recurring income - expect China to less tighten the property residential market.

1 year chart daily candle, EMA 50, 100 and 200 days; 50 days has crossed over 100 and 200 days respectively, 100 days attempting to crossed over 200 days.
Bullish window gap still open, Volume increase and head & shoulder signal indicate strength to the upside.

Annual Report anticipate to be
Furnished on 24Feb2012 (Friday market close)

Ying Li popularity increase due to riding of ChongQing exponential growth and Developers being influx the city. Ying Li share price looks attractive. 
#2 CK 2011-11-15 11:00
As it turned out .....Mewah's 3Q was nothing to shout. Just US$6.5mn down 69% y-o-y. Marginally up compared to 2Q’s US$6mn.

Ying Li reported a 3Q loss of RMB 10.6 million,compare d to a gain in the same quarter in 2010.

Sigh.... the insiders must have bought stock because of their long-term view, rather than short-term bounce in profits. Question is, are they looking at 2012? Surely, it can't be 2013 and beyond -- then might as well wait to buy.
#1 7197 2011-11-08 10:09
Dr Cheo bought about 10 m shares at around 43 cents. Stock almost is 53 cents now.... wow, he has made nearly S$1 million in about 1 month. That's how the rich get richer. cos they understand the stocks they are investing in.

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