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Following Ong Beng Seng in HPL

Ong Beng Seng bought 1.326 mln shares on Wed Aug 31st at $1.96 a share. This would be OBS’ first purchase since May-July ’06, when he and wife Christina bought 2.37 mln shares at $1.81 average.
Wheelock Properties bought its 19.99% stake back in Mar ’06 and also at $1.80, from Quek Leng Chan who got in in 2001 at $1.15 a share.
From the 2007 peak of $6.16, HPL fell 87% to its nadir of 82 cents in Mar ’09, from which it rebounded to $3.00 in Aug ’10.
Given that the celebrated husband-and-wife team does not sell shares, their latest purchase, we believe, could simply signal that they see value in the stock, rather than as a precursor of positive / exciting developments ahead, as in 2006 when talk of a bidding war for control was very much in the air.
Trading at 0.78x price to book of $2.63, it isprobably worth taking the cue from OBS.


Adapted from lim and tan securities 

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