S$0.96-AMTK.SI
Standard Chartered Private Equity (SCPE) bought another 902,000 Amtek shares in the open market on 21 June 2011 when the stock traded between 92.5 cents to 97.5 cents.
SCPE had made their first open market purchase of Amtek shares on 17 June 2011 when they picked up 500,000 shares between 91 cents to 92.5 cents.
SCPE’s latest open market purchase represents about 43% of that day’s traded volume, similar to 17 June 2011’s 44%.
SCPE currently owns 28.53% of the company and is the single largest shareholder after Metcom Group’s 28.27% and Capital Group’s 7.07%.
Given that there were market concerns of share overhang when SCPE and Metcom Group’s 6-month moratorium expired in early June 2011, we believe SCPE’s continued open market purchases is important as it would provide comfort for shareholders that they deem it too cheap to sell at current levels and in fact are buyers of the stock.
We too would accumulate the stock at current levels given that its off 32% from its Jan 2011 highs, 26% off its IPO price and is trading at 6-7x PE against growth of 20-25% and also provides a reasonable yield of about 6%.
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