The Straits Times / The Business Times News on OSIM

Directors' Trades
Founder raises OSIM stake to 22.7%

OSIM International's founder, Mr Ron Sim, recently raised his stake in the company after news of its unexpected third-quarter loss.

He bought 700,000 shares on Nov 2 for about $1.65 each, a total outlay of $1.15 million.

The shares have since recovered - they closed up six cents at $1.77 yesterday - although they are off this year's high of $2.06, reached days before the results were announced on Oct 26.

Mr Sim's purchases have lifted his direct stake in the massage chair manufacturer from 22.57 per cent to 22.7 per cent. His deemed stake of 29.59 per cent remains unchanged.

OSIM turned in a net loss of $9.8 million for the third quarter ended Sept 30, compared with a profit of $10.4 million a year ago.

It was hit by a double whammy: the loss from US subsidiary Brookstone and the rash of imitation products in China.

OSIM's uZap body trimmer was the main victim of the copycat products and reports of its poor quality hit sales of the genuine article.

The company said its core operations remained strong.

Revenue for the third quarter was just 4 per cent higher at $138.7 million.

After the results were announced, the shares fell 30 cents to $1.63 and slipped a further three cents to hit a three-month low of $1.60 on Oct 30.

Citigroup also downgraded the counter.