Directors selling such a small amount is extremely normal - after all, if you are one of the major shareholders and also the director (an ethical one), the fruits from your hard work is the increase in share prices, rather than the director salary.
And to consume that fruits (by monetizing the increase in share value), you have to find a good time to offload it. Timing wise, these week would obviously be the best time, considering the share price just shot up over 20%.
For example, before the share price increase, you own RM 10 million worth of shares. After a 20% increase in share prices, it is now worth RM 12 million. Even after selling RM 50K, you still have RM 11.95 million worth of SMRT shares, and hence essentially the director has not really reduced their shareholdings.
Removing the guaranteed profit of 10 sen per share due to the ELT contract, SMRT is still trading at a PE of 7.5X - ULTRA ULTRA LOW COMPARED TO THE STANDARD EDUCATION INDUSTRY WITH PE OF OVER 20X!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
weijian
477 posts
Posted by weijian > 2014-04-23 11:59 | Report Abuse
No worry la, as you compare the volume that came in and go out. Up Up Up