It was a relatively docile week for the Straits Times Index (SGX: ^STI) after closing at 3,170 on Friday for a 0.6% weekly gain. But, that did not stop some shares from making huge moves. Let?s take a look at them.
We can start with curry-puff and snacks retailer Old Chang Kee (SGX: 5ML). The company?s shares ended trading this Friday at S$0.76, representing a 31% increase over last Friday?s close of $0.58. On Thursday, Old Chang Kee announced that it might be the possible target of an acquisition but stressed that there?s been no formal agreement or any firm…
It was a relatively docile week for the Straits Times Index (SGX: ^STI) after closing at 3,170 on Friday for a 0.6% weekly gain. But, that did not stop some shares from making huge moves. Let’s take a look at them.
We can start with curry-puff and snacks retailer Old Chang Kee (SGX: 5ML). The company’s shares ended trading this Friday at S$0.76, representing a 31% increase over last Friday’s close of $0.58. On Thursday, Old Chang Kee announced that it might be the possible target of an acquisition but stressed that there’s been no formal agreement or any firm acquisition intention stated.
That did not stop the market from being overly excited however, as Old Chang Kee’s shares ended Thursday with a 25% daily gain to $0.85. Its shares pulled back a little on Friday, but still managed to log substantial weekly gains.
Next on the line is Cordlife (SGX: P8A), up 29% to S$1.135 from last Friday’s close. Yesterday, the company, which provides cord-blood banking services, announced that its Indian subsidiary was awarded the International Certificate of Accreditation by AABB for activities relating to the processing, storage and distribution of cord blood.
Jeremy Yee, Executive Director and Chief Executive Officer of Cordlife added “AABB is the world’s gold standard in private cord blood banking, and facilities undergo an intensive accreditation process that includes auditing activities such as client education, processing, testing and storage of clients’ precious cord blood units.”
Cordlife’s accreditation in India comes at a good time as the company wants to capture market share in the fast growing private cord blood bank market (with 35% annualised growth rates from 2007-2011) in the country.
After looking at some big winners, let’s turn our attention to a company that had a particularly bad week.
Otto Marine’s (SGX: G4F) shareholders must be wondering when would the week end after seeing its shares tumble by 27.5% to S$0.058 from last Friday. On 29 June 2012, the company announced a 45-for-100 renounceable rights issue at an issue price of S$0.05 that is expected to raise S$62.8m for the company after deducting costs of S$1.2m.
Otto Marine, an off-shore marine engineering firm, plans to use the fresh funds to pay down debt and strengthen its balance sheet amid difficult operating conditions in its shipbuilding business due to an overcapacity of vessels within the industry. The company currently carries US$378.3m in debt with only US$223.7m worth of shareholders’ equity, placing the company in a heavily leveraged situation.
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