(18-05-2017, 06:47 PM)holymage Wrote: [ -> ]Just to share something interesting.
Was chatting with a friend who works near UMS. My friend told me, he observed that Andy Luong changes his high end car very frequently for a period of time. Perhaps Andy sells his shares to sustain his lavish lifestyle, while keeping a balance between compounding wealth and enjoying life. Insiders may sell for a host of reasons but insider buying most likely speaks positivity.
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Interesting info on the private lifestyle of Andy, though your friend didn't mention when the "period of time" was and how "high-end" the cars were.
However, to put things in perspective, Andy is the only SSH with 20.6% stake in UMS.
Maybe below points should also be considered:
1) Being a SSH or any directors of UMS, he has to obey SGX ruling to declare any share sales/purchase, no matter how small amount, within a few work days of such transaction. So I don't suppose he sold his shares in the last 2 years since he last declared insider share sale was in Mar 2015.
2) Andy has a habit of selling his stake in UMS in the beginning of the year until March 2015. He did mention he did it for his personal interest which some other VB buddies has shared in earlier posts in quite detail, if I recall correctly. In FY2014 AGM (held in Apr2015) , he mentioned 20% is just right and he will stop selling. So far, he seemed to have kept his word for the past 2 years.
3) Assuming UMS continue to pay 6cts dividend each year, with his holdings, he stands to collect every quarterly a substantial amount sufficient for him to sustain a lifestyle of changing cars frequently ( well, unless your friend mentioned he always pay for his high-end car in cash in full amount ). And this amount is also almost 2x his current pay package, based on latest AR. With this, I am always glad Andy didn't pay himself a fat pay package but instead, try his best to share the profits to shareholders, which in fact, he also stand to gain. In order to maintain the dividend payout policy, he has to make sure UMS can generate sufficient free cashflow each quarter . This in a way, is also to keep UMS mgmt team on its toes, to make sure they can deliver to shareholders.
4) With the price rocketing to an almost unprecedented level this year, I'm sure Andy will be glad he don't have itchy-hand to sell his stake like he did in the past of he stand to lose > 60% in price appreciation, with the latest >$1 price.
P.S: I'm also glad I'm not itchy-hand to sell all my stake, as it continue to hit new highs..
I do, however, agree that if he starts to sell again, it may start another wave of selling with shareholders suspicious that UMS is "overvalued".
Just sharing my 2 cents worth, no offence intended
But if this is really important, I'll try attend FY2017AGM next year to clarify with Andy Luong why he like to change cars , lol.
- vested in UMS