Directors bullish about their firms

Stocks to watch on the buying side are Hyflux, Megachem, Mentor Media, Novena Holdings and Super Coffeemix, says ROBERT HALILI

By Robert Halili
Jun 21, 2004
The Business Times

BUYERS outnumbered sellers last week based on filings with the stock exchange from June 14 to 18. A total of 14 shareholders of 14 companies recorded 30 acquisitions versus nine shareholders, seven firms, and 10 transactions on the sales side. Directors and substantial shareholders are bullish so far this month with net buy totals of 19 companies, 48 transactions, 15 shareholders and trades worth $6.3 million. The buy/sell ratio for the number of transactions so far in June is 3.5, which is up from the past six months' average of 2.1 and also higher than the historical average of 1.9.

Stocks to watch on the buying side based on last week's filings are Hyflux, Megachem, Mentor Media, Novena Holdings and Super Coffeemix Manufacturing.

There was a rare buy in Hyflux last week, the first purchase by a company director since August last year. The chairman of Megachem, on the other hand, has supported the company's shares in the past month at 25 to 27 cents each.

There was also a rare purchase in Mentor Media after the group posted record year-end profit. Meanwhile, the chairman of Novena bought for the first time since his appointment in May last year. Lastly, purchases by a substantial shareholder of Super Coffeemix has accounted for 83 per cent of the stock's trading volume this month.

On the sales side, investors should watch out for Elec & Eltek International as reputable fund manager Value Partners Limited recorded its first disposal since becoming a substantial shareholder in January.

Novena Holdings Limited
Dr Toh Soon Huat recorded his first acquisitions in household furniture and furnishings manufacturer and retailer Novena Holdings since his appointment as deputy chairman and chief executive in May last year. He acquired 161,000 shares from June 14 to 16 at 30 cents each, boosting his deemed holdings to 18.47 million shares, or 23 per cent of the issued capital. Dr Toh also has direct holdings of 17.44 million shares or 21.7 per cent. His purchases were
only the second acquisitions by a director or substantial shareholder of the company this year.

Heng Fung Hldgs Ltd had earlier acquired 50,000 shares on Jan 30 at an estimated price of 38 cents each, boosting its interest to 8.05 million shares, or 10 per cent of the issued capital. Heng Fung bought those shares after the stock rose by 46 per cent from 26 cents on Dec 22, 2003. The stock closed at 30.5 cents on Friday.

The writer is managing director of Asia Insider Ltd