The Straits Times / The Business Times News on Cosco

COSCO INSIDERS SELL OFF 5.7M SHARES

WHILE analysts have stayed bullish with buy calls on Cosco Corp, several company insiders have been unloading their shares this month.

A check with financial portal Shareinvestor.com shows that since Aug 1, there have been 17 sales by members of senior management totalling about 5.7 million Cosco shares.

The most prominent seller was vice-chairman and president Ji Hai Sheng, who sold 500,000 shares at $1.52 each on Aug 15, and another 500,000 at $1.55 last Friday.

The transactions have cut his stake to 1.2 million shares.

Other sellers included the wife of independent director, and former MP, Dr Wang Kai Yuen. Madam Mina Sze Ming Chan sold 200,000 shares at $1.53 apiece last Thursday.

One dealer said company insiders may be taking profit on the stock, as its share price has continued to climb since June, despite the turmoil encountered by Asian markets in May.

Cosco closed five cents up at a record high of $1.60 yesterday on a hefty volume of 8.8 million shares traded.

DBS Vickers Research raised its target price on Cosco to $1.72 in an Aug 1 report, anticipating that the ship-repair and freight group would enjoy a stronger second half.

Cosco's performance, it noted, would be underpinned by US$260 million (S$411.3 million) worth of ship conversion and new ship-building contracts. And Kim Eng Securities anticipates that Cosco will enjoy more upside as it restructures operations to focus on ship-repair.