S$0.067-SKYP.SI
We do not expect CEO Liu Qingzeng’s 1.1% addition to his stake (to 22.11%) to interest anyone.
He is likely trying to lend some support after the hit to share price caused by Monday Oct 10th announcement of Ernst & Young’s abrupt resignation as Sky’s auditors. (Sky’s Audit Committee dispatched CFO to China to verify cash balances of the company, which at end Jun ‘11 stood at S$58.7 mln, down from end ‘10’s $65.8 mln. Sky has no back debt.)
And this was in turn because of the recent resignation of Ernst Young Hua Min as auditor of US-listed Sino Tech, whose Chairman-cum-Executive Director is also Liu Qingzeng.
The last time Liu bought Sky shares was in August, after the share price collapse of Sino following allegations its import agent, supplier and principal customers appeared to be shell companies and its technology questionable. He bought just over 9 mln Sky shares at around 11 cents.
Recall how the listing of Sino Tech in Oct ’07 had so excited investors in Sky Petroleum that SGX had to query Sky for reasons to explain the surge in its share price.
Interestingly, Tan Sri Quek Leng Chan, through Guoco Group, brought his stake in Sky below 5% after selling 10.15 mln shares on Oct 15 ’07. Stock was then trading at around 62 cents. We believe QLC has since sold out completely.
And so would have Dubai Investments and Prudential Asset, whose stakes fell below 5% in Oct ‘07 and Apr ‘06 (when the stock was at 56 cents) respectively. (Source: Bloomberg)
In Oct ’10, Sky placed out 60.28 mln new shares to14 investors, at 17.68 cents each.
Finally, note that at 6.7 cents, Sky’s market cap of S$22.9 mln is actually below the company’s profit of S$25.6 mln for 12 months to June ’11!
No comments:
Post a Comment