S$1.045-CMIN.SI
The company’s founder and CEO Lin GR made his maiden open market purchase in the company, buying 200,000 shares at $1.03 yesterday, raising his stake to 6.32% of the company.
While the 200,000 shares only represented 5.7% of yesterday’s trading volume and a mere 0.6% of his holdings, it likely helped the stock recover from yesterday’s intra-day and all time post listing low of $1.
The stock’s selling pressure has accelerated recently when it broke its all time post listing low of $1.09.
Since hitting its all time high of $1.90 in Mar ’11, the stock has been under tremendous selling pressure likely due to continued share overhang concerns, corporate governance concerns given global frauds for Chinese companies as well as selling pressures of their peers in Hong Kong.
While these may linger for a while longer, we understand that fundamentals of the company continue to remain intact, underpinned by continued demand for higher quality vegetables both in China as well as overseas and the company’s expansion and growth plans remain on track.
More sustained buying by insiders could help stabilize the stock.
Further weakness would be a buying opportunity.
Maintain BUY.
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