Insider Trades : Wilmar International Ltd SGX

Wilmar

Kuok Khoon Ean is increasing his deemed interest in Wilmar. Price seems to be in an uptrend now.

Insider Trades: euNetworks Group Limited SGX

We take a look at euNetworks, a European internet infrastructure company listed on the SGX. Things are looking good for this company. Look at the stock price now (we are not considering the interest of substantial shareholders for now).

euNetworks stock chart

Look at when the insiders buy into the stock. Do they know or have an indication that the company is doing well?

Kai-Uwe Ricke Independent, Non-Executive Director bought on the open market on 14 August 2013.

John Scarano who is the Vice Chairman of the board and also the Executive Vice President of Finance, Operations & Corporate Development bought some on the open market on 28 August 2013.

Daniel Aegerter Non-Independent, Non-Executive Director bought on the open market on 5 September 2013. 

Look at what the disclosure form, part III states:
"Mr. Aegerter gave a purchase order to his bank to buy up to 200,000 shares at SGD 0.58 per share. The purchase order was given on 5 September 2013 and was valid until 13 September 2013. Mr. Aegerter received confirmation from the bank only on 16 September 2013 (date on which he became aware of the acquisition) that the purchase of the shares was completed on the first day of the purchase order."

Wow, seems like he bought in at a good price.

3 key people bought into the stock within weeks apart. In October 2013, the stock price shot up.

See the power of the insider activities as disclosed by the disclosure form.

***NOTE***

Please note that I do own the stock and I am NOT recommending anyone to buy this counter or invest in this directly or indirectly. I will not take responsibility whatsoever. I started this stock as my first analysis because I do own it and it makes it easier as I have the information already on hand.

Insider Activity Vs Insider Trading

Let's not mix up between insider activity and insider trading. Some people see that it is actually a fine line separating the two. But let's not dwell on that.

For stocks trading on the Singapore Stock Exchange (SGX), the board of directors, key management personnel and substantial shareholders have to report any changes of their interest in the company.

Board of directors and key managers have to file in FORM 1: NOTIFICATION FORM FOR DIRECTOR/CHIEF EXECUTIVE OFFICER IN RESPECT OF INTERESTS IN SECURITIES whenever they buy or sell their interest.

This creates transparency and their trades are open for all to see. We will use this information to assist us in evaluating a company.

There are other forms for other reportables (person/parties) as well and we shall also take a look at those as we go along.

Insider Activity and Trades

What better way to know about a company than to follow what the insiders think. Insiders in this sense refers to the key people in a particular company. In this blog we consider the insiders to be the board of directors and the key management.

These insiders can provide a particular insight into the health of a company. It is said that the insider can sell their stake in a company for many reasons:

1) they want to lock in the profits made
2) they need cash fast
3) they believe the company's stock is going down in the near/long term
4) many other reasons

but usually they buy because of only 1 reason, that is:

1) they believe the stock price will go up

We will study this as we go along and I will highlight some examples as part of the research. This is another method of following the big boys or the smart money. We used to follow the commercials. Now we follow the people who knows much more than the commercials do. The people who knows the inside story. The insiders.

Importing Stock Prices Data into Metatrader

I have received queries from readers on importing stock prices for SGX, ASX, HKSE, KLSE stocks into Metatrader. Some of the Metatrader data providers have charts for some stocks on the American exchanges suchs as NASDAQ but for other exchanges it is virtually non-existent.

It is possible to import such prices into Metatrader, all it requires is just a bit of programming and modification. You can contact me for more details.

No More Commitments of Traders (COT) Proxy?

Hi All,

I guess below is self-explanatory. I am not sure even if this guy is legit. Anyway better be safe than sorry.

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The message:
trader811 October 2013 22:26  Hey guys my COT Proxy index is a proprietary tool. i took me years of reassearch and heartache to develop, If you insist on giving away the formula you leave me no choice but to sue. Please stop...this is just not fair.  larry williams

My reply:
Uncle Ti 8816 October 2013 15:16  We are not giving away the formula, this site is merely providing an overview of the index by sharing examples. Anyway we are no longer going to post anything to do with the cot proxy index anymore.
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I am going to now go into another alternative where we can gauge the real interest of some of the big boys. What better to follow than the real insiders...

Choosing Junior Mining Stocks on ASX

I read an article on the ASX website on the factors to consider when choosing which junior mining companies you want to put your money in. There are dozen of these companies and they seem to have lost their lustre due to the China slowdown and this dampens the commodities boom.

Here are some of the factors to look out for:

1) What are the kind of commodities the company is mining? eg. gold, uranium, copper, diamonds
2) Where are the projects? eg. Australia, in a volatile African country
3) Are the projects on a big scale?
4) Who is the managing director?
5) How much cash does the company has?

These junior mining companies do look attractive given success stories such Paladin Energy Ltd (ASX : PDN). Imagine a share worth a couple of cents going up to $10.00. But do take note that these type of successes are not that common.