Thursday 14 November 2013

What Happen In Instacom??

The two most important persons in Instacom, Mr Ngu & Ms Anne Kung are disposing Instacom shares and warrants for the last 2 months!

It started with Ngu who first disposed the warrants just 2 days after acquiring them at 14.52% in September 2013. In early Oct, Ngu has got zero warrants.

Warrant may not be important as it does not represent shares in the company, is not entitled for dividend and need extra cash to convert it into company share. Perhaps the director want some cash urgent.

Furthermore, with the conversion price of 33sen, the warrants are currently trading at a positive premium. So he may think that the warrants do not worth the current price.

However, besides the warrants, Ngu also disposed his ordinary shares as well since early Oct, paring down his stake in Instacom from 14.52% acquired during the reverse take-over exactly one year ago, to 8.4% yesterday. 

       Anne Kung & Ngu

Now Anne Kung joins in since one week ago in early Nov 2013. The CEO has reduced her warrants substantially from 14.52% to 1.8% in just one week time. 

It seems like both of them have not finished yet.

The executive directors know the company inside out. If they know that the company will post an impressive quarterly result this month, or able to sustain its earning in the near future, it is quite impossible for them to throw their shares and warrants substantially at this time.

Initially I think that Instacom is worth at least 40sen if it can maintain its earning in the first 2 quarters of FY2013. However, I am in doubt now.

Thus, I won't touch this stock until the release of FY13Q3 results, and will probably downgrade it from my stock watch list to stock alert list later.

Are they using the money to buy other company like Dato Thong of Inari? I don't know.

But if Anne Kung starts to dispose her ordinary shares, then ...

1 comment:

  1. thanks for sharing.
    ya i noticed this counter dropped sharply these few days.