What does Koh Wee Meng ‘s moves signifies?
Koh Wee Meng,Fragrance group CEO has sold a large chunk of Tee Land and Roxy-Pacific shares in order to use the cash to buy his own companies Fragrance Group and Global Premium Hotel. On first look, it looks like he is confident of his companies prospects and less of other companies propects. However, these companies are in the same business,property and hotel. Unless, his companies has a special competitive advantage over others, they will suffer and prosper together.
It means that he is eager to shore up defence in his own companies to hold up the share price due to selling pressure and the cash has to come from shareholdings in other people’s companies.Of course,my deductions may be wrong but if it is correct, property bubble may burst soon and hotel business also may take a setback. Watch Out!
Entry filed under: Watch your step.