SGX Announcement 20 May 13:
GP Hotel Chairman Koh Wee Meng bought yet another 1,000 lots via open market at $0.27, spent another $270,000+ on the purchase.
The day's entire transacted 1000 lots @ $0.27 were purchased only by him, at 4.56pm, pushing the closing price to $0.27.
His direct stake increase from 4.37% to 4.47%, with deemed stake at 52.28%.
NAV: 38.46cent (based on 13Q1 report)
EPS FY12: 2.07cent (based on AR12)
PE Ratio: 12.8
Clearly he's either too eager to buy back his stakes in the company (not sure if he's planning to take the company private), or he's trying to "influence" the price chart. The coy's closing at $0.27, led its price to close above all its Moving Averages, some short-term MAs like 5D, 7D MAs cross above longer term MAs like 100D MA. This on a chartist point of view, create a bullish picture & signal potential entry.
That is, if the market responds & follow the Chairman's lead to push up the share price further. $0.275 is its resistance point, if break above, the price may retest its IPO's initial trading prices of $0.29-0.295.
So far, his purchase covers close to 30-40% of the entire trading volume of the day, but with his substantial stakes, any offloading by him will be "visible" & cause the price into freefall. Clearly if he's not trying to accumulate to take coy private (coz he think e current price is too cheap) or he's trying to boost the price for whatever reasons; I am not sure what else his continuous substantial purchases could mean.
In any cases, a rising price makes shareholders happy anyway.
Caveat: I am vested