One of my value buys, Dapai International, (my FA here) broke out of it's relentlessly tested resistance of 22c to close at 24c today with a high of 24.5c, along with volume of 21.3million shares traded, as contrasted by daily average volume of 0.5 million to 1.5million the past few weeks.
It's unclear why it gapped up slightly today and why volume was so high, since there's been no announcements from the company since November 2010 where they issued a profit warning.
I'll be watching SGX for any corporate announcements on insider buying.
Very curious as to who is buying up this counter, could it be the Big Boys (Institutional Owners) or the retail investors?
When I bought this counter in December, the counterparty was UBS Securities, which likely meant that an institutional owner sold it's shares to me(which actually is not a good sign since institutional players are the ones who control the market, especially with illiquid counters like this), since UBS does not offer retail brokerage services. Contrast that to PohTC(my comments here), where the CP was CIMB and First REIT where the CP was OCBC Securities, which means that it would likely have been retail investors selling.
I still believe in this counter's extreme discount to it's intrinsic value, and I will be holding on to my small position till it reaches my TP of $0.52 (DCF valuation of it's FCF with 10% Discount and 0% growth). However, I will not be accumulating on weakness, as all my calculations and valuations are based on the assumption that the figures are true and accurate. Let's not forget China Aviation Oil, Jurong Tech, Fibrechem, China Milk ad nauseum.
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