Singapore “Flyer” of the Week: ITE Electric

singapore flyer

Despite falling by 8.9% yesterday to S$0.082,  ITE Electric (SGX: 581) has still enjoyed a tremendous week so far with its shares gaining 41.4% from last Friday’s close at S$0.058. This makes the company this week’s Singapore “Flyer.”

The firm is involved in the manufacturing and sale of electrical distribution and control equipment at wholesale and retail levels. It is also a major supplier of electrical distribution and control equipment to the construction industry both in Singapore and Malaysia.

Last Friday after the market had closed, the firm announced that its Chief Executive Office, Ho Cheng Leong, would be selling his 16.58% stake in ITE Electric (representing some 22.77 million shares) to Aw Cheok Huat. Aw, who is the chairman of ICP (SGX: 5I4), would be purchasing ITE Electric’s shares from Ho at S$0.06 apiece. ICP’s main activities appear to be in a similar field with ITE Electric; the former provides electronic manufacturing services and markets and distributes electronic components.

After the news broke through, shares of ITE Electric shot up on Monday and actually traded at an intra-day peak of S$0.077 at one point, representing a 32.8% gain from last Friday’s close. On Wednesday, ITE Electric’s shares hit a high of S$0.096.

Incidentally, ITE Electric is also assisting the Commercial Affairs Department with the latter’s investigation into the penny shares saga that rocked the Singapore market in October last year. Back then, shares of Blumont Group (SGX: A33), Asiasons Capital (SGX: 5ET), and LionGold Corp (SGX: A78) had fallen by almost 90% or more in market value in a matter of days.

ITE Electric has been making losses for its past three financial years and is currently going at 1.4 times its historical book value.

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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.