Marco Polo Marine: Insider buying continues.

Mr. Lee Wan Tang, Chairman of Marco Polo Marine, purchased 1,000,000 shares at a price of 42c per share yesterday. This was disclosed in an announcement today.

Mr. Lee's direct and deemed interest in Marco Polo Marine increased to 59.52% (202,811,374 shares) with this latest purchase. He has, in slightly more than a year, since December 2011, increased his interest in the company by about 9,000,000 shares.

Conventional wisdom tells us that a high level of insider ownership suggests that the management's interests are aligned with shareholders'. When there is a meaningful increase in insider buying activity, shareholders should be more than just interested.

Insider buying at 42c a share could explain why those of us who have been waiting to collect at 41.5c or lower have not been able to get our orders filled. Technically, immediate resistance is at 43c, the last high.

Nobody wants to buy at resistance and this is probably why volume has reduced which suggests an overall picture of caution.

Insiders probably don't care much for technicals and using insider buying activities as a guide for short term share price performance is probably not a good idea. However, using the same in our longer term investment decisions could prove to be more fruitful and for those of us who bought some at 42c a piece, we could take comfort from knowing that Mr. Lee did so too.

Conservatively, I value Marco Polo Marine at 50.5c a share which is 8x PER based on the EPS of last year. They are likely to see higher earnings this year. So, keeping 8x PER as a guide to a fair valuation, 50.5c could turn out to be an understatement.

See announcement: here.

Related posts:
1. Marco Polo Marine: Indonesian Cabotage Law (Part 2).
2. Marco Polo Marine: Still cheap.

Soup Restaurant: Special dividend declared.

When Dian Xiao Er became independent of Soup Restaurant last year, the expectation was that Soup Restaurant's earnings would be hit badly. If we look at the year 2011, 42% of Soup Restaurant's profit was contributed by Dian Xiao Er.

In 2012, although profit from continuing operations, net of tax, jumped 126.9% year on year, removing the contribution by Dian Xiao Er reveals a more modest increase of 59%. Even so, we should take note that the performance of Soup Restaurant was boosted by a one time gain from the divestment of Dian Xiao Er to the tune of $3.4m.

If we examine my initial motivation to invest in Soup Restaurant last year, a big part of it was because I thought the probability of a special dividend being declared was quite good. Of course, since I like Soup Restaurant's food and would patronise their restaurants monthly, there is the benefit of getting a discount as a shareholder during my visits too.

Well, the special dividend did not happen then as the management decided to plough the money back into the business. However, since then, I have received dividends twice and this would be my third round of dividends.

Total declared this round:
Interim dividend: 0.35c
Special dividend: 0.8c
Final dividend: 0.35c

As some would say "third time lucky" and a special dividend has been included this time round. A total dividend payout of 1.5c translates into a dividend yield of 10.95% based on the high of 13.7c per share touched this morning. Without the special dividend, dividend yield would be a less exciting 5.1% but still not too shabby.

See financial statement: here.

Related posts:
1. Soup Restaurant: Special dividend?
2. Soup Restaurant's S-card.

Oz The Great and Powerful!

I have always enjoyed movies by Disney. I guess I am still a little boy at heart. ;-p

Well, a new Disney movie is coming to town!

“Oz The Great and Powerful!”

When a small-time circus magician was transported from dusty Kansas to the vibrant Land of Oz, he thought he had hit the jackpot until he met the three witches who were not convinced he was the great wizard everyone had been expecting!

I have always enjoyed the messages embedded in Disney's movies. This movie is probably no exception as the magician transformed himself not only into a great and powerful wizard but into a better man too!

“Oz The Great and Powerful” screens in Singapore on the 7th of March 2013.

Visit the official website and you could also take part in a contest to win exclusive movie premiums at:
Disney's "Oz The Great and Powerful!

Yongnam: Broke resistance! 29.5c tested.

On 14 February, in a reply to a reader regarding my take on Yongnam, I wrote:

"My view? Technically, positive momentum is very strong and there is a chance that resistance could be taken out if this keeps up."

Hot on the heels of that statement, the share price broke resistance at 28c today on the back of heavy volume to touch a high of 29.5c. Spooky!

Of course, based on my observation that Yongnam's share price seems to move in bands of 1.5c, 29.5c is the new resistance to watch. 28c is the new immediate support.

On 15 February, in another reply, I wrote:

"Although I don't have a working crystal ball, I am almost sure that Yongnam would hit 31c a share in the next 12 months. There, I know I shouldn't say things like this but I am not WB. So, indulge me."

Now, if 31c were to be reached this week, it would really be spooky!

Related post:
Yongnam: Partial divestment at 27.5c.
(See the comments section.)

China Minzhong: Sharply up! Going higher?

Mr. Market certainly likes the news that Indofood has become a substantial shareholder of China Minzhong. Like a child on a sugar high, its share price rushed upwards today.

I did another partial divestment as share price closed the gap at $1.20. This tranche which was divested had shares which were purchased in June last year at 55.5c a piece. So, the ROI is pretty high.

Together with the tranche of shares I divested last month, I have in total sold about 60% of my investment in China Minzhong. With the gains from these divestments, it also means that my remaining investment in China Minzhong is "free".

Will China Minzhong's share price continue to rise tomorrow? Only Mr. Market has the answer.

If share price should progress higher, watch those golden ratios.

138.2% is at $1.30.

150% is at $1.37.

161.8% is at $1.435.

Related posts:
1. China Minzhong: Indofood is a new substantial shareholder.
2. China Minzhong: 2Q FY2013 stellar results.

SIM Open House 2013.

Thinking of pursuing a Diploma, a Bachelor’s or a Master’s Degree?

You might want to consider going to SIM Open House 2013 and learn more about what SIM Global Education (SIM GE) has to offer.

Partnering 11 international universities that include the University of London, RMIT University, University of Manchester and University of Birmingham, SIM GE offers more than 50 full-time and part-time programmes.

Also, find out more about the scholarships available!

Be entertained and inspired as current students put on an exclusive showcase of music, dance and martial arts. Go on a campus tour of SIM Headquarters and hostel facilities!

Help is also at hand to assist parents who want to learn how to guide their child in making an informed education choice.

Start by visiting online:
SIM Open House 2013.