Soup Restaurant: Gain of $7.7m.

On 14 June, Soup Restaurant confirmed the sale of its stake in YES F&B Group Pte Ltd. The consideration is S$7.9m which represents an excess of some S$7.7m over the cost of investment of the Group at the end of FY2011.

The net tangible assets (NTA) per share and consolidated earnings per share (EPS) of Soup Restaurant will be positively impacted in the current FY2012. The former would see an increase of 1.18c per share while the latter would see an increase of 1.05c per share.

The completion of such a sale is not going to happen immediately. It is going to take some time but the rising OBV seems to be telling us that smart money is accumulating shares of Soup Restaurant even as its share price suffers from some weakness in recent sessions.

I bought some shares recently at 12.3c. If I do not make money from this investment, at least I would get a 15% discount when I dine at Soup Restaurant outlets in future as a shareholder. ;p

See announcement: here.

Related post:
Soup Restaurant: Special dividend?

China Minzhong: High volume white candle day.

Having added to my long position in China Minzhong recently, believing that it was not a time to sell, I am pleased to say that I seem to be on the same page as Mr. Market now.

I added more to my long position today as share price broke resistance provided by the 20dMA at 57c on the back of very high volume in the morning. Volume is the fuel that drives rallies and the high volume breakout could see some follow through.

Fundamentally undervalued, China Minzhong was, technically, also very oversold. However, with the relentless selling by Mr. Market and decline in share price, the technicals are pretty damaged and it would take some time to repair.

The share price is in a downtrend; there is no doubt about it. Drawing a trend line shows us where resistance could be found over time in the event of a price recovery. Shortists who might have covered their shorts today could come out of the woodwork once the share price is at resistance.

In the meantime, the rising momentum oscillators suggest that selling pressure continues to ease and if buying pressure should continue to overcome the sellers, a test of trend line resistance is on the horizon.

The resistance provided by the declining 50dMA is something to watch out for as, if I were to hazard a guess, sellers would be out in force then. Immediate support is now provided by the 20dMA, formerly resistance at 57c.

Related post:
China Minzhong: Too cheap to sell.