Hotung Investment (和通）

Hi ngcheeki,

Can you share your views on why do u think that the main shareholder, in the context of VC fund manager, selling its stake is a negative event? Thanks.

Vested

(19-01-2013, 09:56 PM)mrEngineer Wrote: Hi ngcheeki,

Can you share your views on why do u think that the main shareholder, in the context of VC fund manager, selling its stake is a negative event? Thanks.

Vested

I'm just afraid that, when Hotung's major shareholder, Tai Lung Capital Inc., disposes share of Hotung it's likely to send a negative signal to minority shareholder that the current price of Hotung is fully value or even over value. In the event, there are more sale of hotung shares by Tai Lung Capital Inc, similar to what had happened during June to July 2010, it will limit the upside of Hotung share price in the short term. Furthermore, the lady chairman of Hotung Tsui-Hui Huang and founder Cheng-Wang Huang who are members of Tai Lung Capital, had a better insight of Hotung than most of us.

Vested

I agree with you that investors may look at negatively as it is unusual for a company to sell its stake when it has not fully realize some of its investment.

However, in the fund business, sometimes one of the LPs may need urgent $ to realize some of their other commitments. If i never read the announcement wrongly, I take some comfort from that neither e chairman nor the founder sold their stakes. Secondly, I may worry a little more if the management decides to buy more before the financial results release as it may mean there may not be any positive surprise. If they sell and earnings are poor, they might be subjected to insider trading?

Hopefully this event will turn a buying opportunity for me.

The selling has not affected the price. The amount realized is considered small. I am not worried.

Ok the story is a little different today with both Chairman and CEO selling their own stakes of more than 7m stocks and moreover they do not have employee share options scheme..

Interesting to know that Chairman and CEO has bought more stakes in Dec 2010 after selling down in June to July 2010 at approx cost range of between 0.115 to 0.145 and now selling at some profit..

(22-01-2013, 09:41 PM)mrEngineer Wrote: Ok the story is a little different today with both Chairman and CEO selling their own stakes of more than 7m stocks and moreover they do not have employee share options scheme..

What could possibly trigger them to sell? Is it related to the performance of the company or their personal reason?

Remember not long ago the company is still doing share buy back at 15 cents.

Perhaps to raise cash for the higher down payment of their Singapore property investment. Ha ha ha.

Vested.

(22-01-2013, 09:45 PM)Share Investor Wrote: What could possibly trigger them to sell? Is it related to the performance of the company or their personal reason?

Remember not long ago the company is still doing share buy back at 15 cents.

Perhaps to raise cash for the higher down payment of their Singapore property investment. Ha ha ha.

Vested.

If the Chairman and CEO are selling then ngcheeki hypothesis is right that the short term performance of share price, company results or special dividends are limited. Let us just hope that based on the wonderful Q3 results (and generally Q4 bull market) has resulted better performance for Hotung in 2012. However, it will not make sense for Chairman and CEO to sell now if they plan to increase dividends on the next results announcement. They do not seem to have need for funds as well as they could easily afford 5% worth of Hotung in Dec 2010..

Therefore it is quite difficult to read into it now. Lets hope that do not sell more until earnings release..

There is a possibility that father and daughter have found some other lobang to invest in. Thus the need to raise cash.

We might never know the reason.

(18-01-2013, 10:48 PM)ngcheeki Wrote: Market sale of 2,700 lots by Major shareholder, Tai Lung Capital Inc. Not a positive sign!!

http://info.sgx.com/webcoranncatth.nsf/V...7003CA4C5/$file/TaiLung20130118.pdf?openelement

Nothing wrong. Tai Lung once in a while will sell and buyback again. They bought the shares at 10US cents anyway when Third avenue was selling down 3 years back.

I was looking at the dividend payout.

Anyone can advise why it paid in USD, SGD and even TW $?

Why is it inconsistent?