3 Companies With Insider Activity

The_InsiderOne of the more commonly used strategies by investors is to follow the insider transactions. Some might even assume that since insiders are “in the know”, they will be able to predict or control the price of the company.

Consistent insider purchases may indicate the share price is undervalued and brings confidence to the price trend of the share price. And, there might yet be others who would turn the argument around and say that if insiders are selling, then bad news is likely to be around the corner although there is no basis for that because they may be selling for their personal reasons.

With that in mind, let’s take a look at three companies with insider activity for the past week.

ASL Marine Holdings Limited (SGX: A04)

The company is an integrated marine services group which operates in 5 segments: shipbuilding; ship-repair and conversion; ship-chartering and rental; engineering and lastly, investment holdings. It owns a total of 4 shipyards located in Singapore, Indonesia (Batam) and China (Guangdong) which caters to customers from Asia, Europe, Australia and the Middle East.

On 22nd April 2014, Fidelity Investments bought 96,000 shares for the total consideration of S$69,120 via the open market. This transaction increases its originally deemed stake from 7.99% to 8.02% of the total number of voting shares. ASL Marine last traded at S$0.715 on Friday with an modest P/E ratio of 6.77 and offers an annualized distribution yield of 2.8%.

Cambridge Industrial Trust (SGX: J91U)

Cambridge Industrial Trust is a real estate investment trust (REIT) that focuses income-producing industrial properties and has a diversified portfolio of 51 properties located across Singapore, with a total gross floor area of approximately 8.0 million square feet. Its properties are grouped under 4 segments; logistics, warehousing, light industrial and general industrial, which are located close to major transportation hubs and key industrial zones island-wide.

On April 24, Wealthy Fountain Holdings Inc acquired 1.411 million shares at an average price of S$0.73 for a total consideration of S$1,030,030. After the purchase, its direct interest in the firm rose from 11.89% to 12.01%. As Tong Jinquan, the sole shareholder of Shanghai Summit Pte Ltd which in turn, is the sole shareholder of Wealthy Fountain Holdings Inc, she is deemed to own 149,730,719 units which Wealthy Fountain Holdings Inc holds as well.

Cambridge Industrial Trust last changed hands at S$0.735 on Friday and commands a NAV of S$0.694, which translates to a Price/Nav of 1.06. Its gearing ratio stands at 29.90%, comfortably below the 35% stipulated by the Singapore Government and also sports a distribution yield of 6.903%.

Venture Corporation Limited  (SGX: V03)

Founded in 1984, Venture Corp has become a leading global provider of technology services, products and solutions. It designs and develops electronic and mechanical solutions for manufacturers and supply chains. The company also possess technological  know-how and intellectual property with many segments such as domain in printing and imaging, advanced storage systems and devices, medical devices, just to name a few.

On 24th April, Aberdeen Asset Management Asia Limited snapped up 258,000 shares for a sum of S$1,995,475.20, equivalent to an average price of S$7.73. This acquisition pushes its already significant 22.9546% deemed stake in the firm to 23.0485%. Venture Corporation closed at S$7.72 on Friday and it sells for 15.85 times earnings. It offers an annualized dividend yield of 6.48%.