I had a quiet weekend spending money, buying stuff for my weekend football games. Unsurprisingly, I went to Queensway Shopping Centre to get my new pair of boots as well as some footballs.
But before I went there, I read a few posts online regarding China Animal Healthcare and its interesting sell queues. I spent a little time vexing over this issue because while the writer had put a positive spin on it, most of us cynics would try to understand the underlying reason as to why a substantial shareholder wishes to pare down its stake in the company. It is worrying because against the backdrop of a broader penny stock rally China Animal Healthcare's share price has been stuck at 24-26 cents. Furthermore, this selling is ahead of the company's announcement of its results. The truth will out.
The other thing that I was thinking about is ST Engineering's acquisition of Nera Telecommunications. The stock has not moved much in terms of share price, but it has rewarded those who hold it for its dividends with a decent yield. For some, it will be a pity. However, it is almost inevitable when a company that is consistently generating cash but not able to grow in size, to be swallowed up by a bigger entity. The alternative would be for the company to be taken private. In this case, I guess the offer by ST Engineering is too good to resist and maybe most of its senior management wants to take a break.
We are already into the second month of trading and things have started looking shaky as one head of equity research put it. I will hold my breath.