Monday, November 29, 2010

C and O : Trading Halt. WTH!?

I think this is a bit too much for me. First it was GMG Global that declared a trading halt on a Monday morning. Now is it C&O Pharma turn to announce a trading halt in the evening. The company says it will make an announcement on Tuesday morning.

Given the lack of price-volume action but a substantial paring in stake in recent months by a Lee Chong Min who linked to a PE firm, I can only think of three possibilities what will happen tomorrow:

  1. C&O is affected by some new regulation or price cuts.
  2. Insignificant acquisition of a smaller company (Most likely)
  3. Placement of shares.
Good luck to all those vested.


Removed profit warning.


  1. Does announcing profit warning require a trading halt? Even with regulated price, the management already said they expect to be compensated by increased volume.

    It could be announcement of tie up with foreign drug maker who wish to enter into China market. Good news.

  2. Nope. profit warning will not need a trading halt. i edited that out. i wanted to say it was unlikely, but adding that line made the formatting a bit ugly. i seriously have no idea what is going on, but i'm still guessing number 2. if it is 1 or 3, the share price action will tell.


  3. Other possibilities could be positive news such as signing of a new deal for distribution of drugs, or some major breakthrough with respect to the R&D of a new drug.

    Possible negative news may be a rights issue, or an M&A triggered which is a discount to the last done market price.

    This should be interesting, and I shall be monitoring as well.

  4. MW,

    how would you deal with two trading halts in a day? in my opinion, thats one of the problems of having too many stocks under your belt. IMO GMG is the least of my worries because they have a plan which they plan to execute and is moving like clockwork. For C&O i really have to see what they will announce tomorrow morning

  5. Hi SG Stock Picker,

    Well, it's hard to say how I would feel as the most I've had is one trading halt and usually I know what it's about (e.g. Suntec REIT doing private placement). For my other companies, trading halts are almost unheard of as I know they have sufficient cash reserves so a placement or rights issue is extremely unlikely. So I guess the only possibility (should it happen) is likely to be a takeover offer (GO).

    Yes I think it may be a result of having too many companies in your portfolio, then again to each his own. :)