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“Falling Knife” of the Week: Innopac Holdings Limited

InnoPac LogoAn investment holding and management services company, Innopac Holdings Limited (SGX: I26), has plunged 20% since Monday. It is our “Falling Knife” of the Week.

The shares currently cost  $0.052, which values the company on a historical PE of 17.5.

An interesting fact about this company is that it was once operated the fast food franchise, Kentucky Fried Chicken (S) Ltd. The franchise was divested in 1992.

On 10 October, Nomura International announced that it had sold part of its stake in Innopac. Before the sale, it held 5.64% of the company. It now holds 3.31% of the company. Nomura sold 73m shares for $7,35m. Following the disposal, Nomura is no longer a substantial shareholder of Innopac.  (A substantial shareholder is one who owns more than 5% of a company).

Last week, Singapore Exchange queried Innopac over a substantial decrease in its share price. The company replied that it was not aware of any information not previously announced that might explain the trading activity and decrease in the price of the Company’s shares.

On the same day, it was announced that Mr. Wong Chin Yong, Chief Executive Officer and Managing Director of the company, bought more of his company’s shares. He bought 4,000,000 shares at a total price of $300,000. After the purchase, his shareholding increased from 0.44% to 0.57%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.