Your comments made me curious, so I decided to take a look.
As far as I can tell for the time period, Wai Chan sold 8,000 shares from his 3.1 million shares. Edmund Mak was given 100 K shares at 0.55 and sold about 20 K at around $ 1.35. Personally, I don't see why this guy was appointed director, so I am not sure what improtance his selling suggests. He probably needed the money for a down payment on a new BMW is my guess.
I am a little disappointed to find no insider buying though. It kind of supports my theory that they are not motivated in the day to day stock value (more interested in growing the business than shareholder value).
It was interesting to note that there was a lot of cashing in when the stock was trding in the $ 2.5 range. I expect that if we ever see the price north of $ 5, you will see some more insider sales.
Its surprising that Wai Chan even bothered selling 8000 shares - its got to be chump change to someone with 3.1 M in holdings. I can only guess that they may have decided to feed the bidd to keep it a little bit active.
Another company I watch, Trivalence Mining, TMI-V, is another different example of insider trading. The major owner pretty well bought all the shares that were sold at $ 0.80, I can't be certain, but he picked up over 300 K shares to support the price. That gave me the confidence to keep holding on.
I wouldn't worry about the price based on what they do. I used to work in the pulp side, and generally, they seem pretty safe. Mind you, if the mills they sell to have problems, the company could be stuck holding a lot of promisary notes. I don't like the high receivables you see sometimes, but its the nature of what they sell.
I know you don't think the GEMS deal was good, but frankly, I think it is excellent. The interest rate is favourable unless the stock price doesn't head north of $ 1.72. This should be easily acheivable.
My only worry is what the upcoming American market melt down will do. The prices people paid for some stocks is silly to say the least. As one economist put it,
"The fate of the world economy is now totally dependent on the growth of the US economy which is dependent on the stock market, whose growth is dependent on 50 stocks, half of which have never reported any earnings"
Cheers |
