Tuesday, May 24, 2011

Update On Koon Yew Yin's Investment In Xingquan

It's so understandable that many likes to follow the investing moves of their stock market heroes. If the stock guru buys, then they will buy.

That's how it is.

Now I am not here to argue whether this is correct or wrong but let's reconsider one popular example again.

Back in April 2011, I posted the following posting: Koon Yew Yin's Investment In Xingquan.

Why Xingquan again? Well Xingquan is one of them many Chinese listed stock selling at a cheap valuation and Koon Yew Yin is a famed local investor.

Now Koon Yew Yin's investment in Xingquan was first mentioned in the posting Regarding Xingquan's Cash And Dividends

  • ch said...
    Dear All,Yes, the issues brought up by Moolah, Mosea and Snowball are primary concern(s) if one is invested into Xingquan. The dynamics of Chinese stocks and business community are always tinged with mysterious circumstances. Be that as it may, the Chinese are rapidly becoming the world economic superpower. One thing I know about Xingquan is that a shrewd investor by the name of Koon Yew Yin is a minor majority shareholder. Please refer to Bursa Malaysia under change in shareholdings column. This is the same man who has years of experience in stock investing and the same person who pledged to donate RM30 million to UTAR (but was turned down by MCA for reason(s) best known to them. He is a smart share investor and invested a sizeable amount in Xingquan. Guess he should know something about Xingquan that we do
Now if one surfs the Bursa website for more information, they would find the following announcement: Notice of Interest Sub. S-hldr (29A) - KOON YEW YIN

Date interest acquired : 27/09/2010
No of securities : 15,422,100

After the acquisition, KYY has

Direct (units) : 16,901,000
Direct (%) : 5.5

But there is no price stated. Shares were said to be purchased on Sep but the announcement was made on 19th Nov 2010.

From Star biz website: http://biz.thestar.com.my/marketwatch/charts/BizHistory.asp?submit=1&scode=5155, all we one can do is to make a guestimate of the acquired stock price. And if one use the average from Sep 15 to Sep 25, perhaps the average price is around 1.60.


Is this correct? Or is this wrong? I do not know exactly but I would be flawed to use a guesstimate price of around 1.60+

Posted the next day on 20 Nov 2010: More Balanced View On Xingquan

And I mentioned ....

So much interest.

Well... for the record...

ps: how many quarterly earnings has Xingquan reported since listing?
ps/ps: how has Xingquan reallly fared?
ps/ps/ps: has Xingquan's perfomance so far being up to par? Has it beat 'expectations'? or has it grossly perform below expectations.

How? I just raised some simple questions.

On Jan 2011: Notice of Person Ceasing (29C) - Koon Yew Yin

Mr. Koon Yew Yin did a share transfer of 4,000,000 shares and with this share transfer he is no longer consider a substantial shareholder.

Which means he does not have to report to Bursa Malaysia anymore in regards to his shareholding in Xingquan. Has he sold some? Does anyone know? Or who has he transfer his shares to? Or did he top up more shares in this other account?

So how? If you are following KYY, how now?

And as everyone knows, Xingquan had fared rather poorly since Nov 2010.

So how?

Some even dare insinuate KYY called a buy call at 1.10. Rather dubious because since Nov 2010, the lowest Xingquan traded was 1.12.

ps: Do refer last month's posting: Koon Yew Yin's Investment In Xingquan.


xinzhang said...

Dear Moolah,

You can check for yourself with Koon Yew Yin if he is still holding Xingquan at yewyin@gmail.com I have been informed that he transferred those shares to his daughter. This is an information which I got from himself. He is also holding Xingquan through his wife and other close relatives. The total holdings might be more than the 5.5% quoted. The point of him dumping Xingquan does not arise. However, the apparent dismal price movement of this counter had many riled up in anger.

I have read the comment posted by Gwyn Welsh on Xingquan in your blog recently. He had pointed out pertinent points which are of course facts. The management of Xingquan has to increase dividends to its shareholders in order to instil confidence among shareholders and potential investors. The confidence among investors now on Chinese stocks are very low.

Xingquan has to show that they are above the rest.