Tuesday, November 24, 2015

CWT Limited

This post was sparked by a post on valuebuddies.

The post was

"Well, wasn't CWT around 1.50-1.60 two months ago? And its chairman have heavily bought its shares at around 1.50-1.60. 

Since the chairman will know more about CWT than most people, I can just follow him and start adding at 1.50-1.60 and below. No need to think so much."

I wanted to examine whether this is the case.

Here is a look at all the insider transactions in CWT Ltd in 2015


DateTimeCompany NameSecurity NameAnnouncement Title
14 Apr 201506:50:01 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF DIRECTOR
14 Apr 201506:48:02 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF SUBSTANTIAL SHAREHOLDER
02 Apr 201506:17:35 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF DIRECTOR
02 Apr 201506:15:18 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF SUBSTANTIAL SHAREHOLDER(S)
01 Apr 201505:56:05 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF DIRECTOR
01 Apr 201505:52:27 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF SUBSTANTIAL SHAREHOLDER(S)/ UNITHOLDER(S)
13 Mar 201505:42:55 PMCWT LIMITEDCWT LIMITEDREPL::Disclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer
13 Mar 201505:38:01 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer
13 Mar 201505:35:03 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Substantial Shareholder(s)/ Unitholder(s)::Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer
11 Mar 201505:15:01 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::Disclosure of Interest/ Change in Interest of Director/ Chief Executive Officer
24 Feb 201506:02:32 PMCWT LIMITEDCWT LIMITEDDisclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer::DISCLOSURE OF INTEREST/ CHANGES IN INTEREST OF DIRECTOR


You will see that the transactions happened between Feb-April 2015.

Now, here is a look at the prices in terms of charts.


The first big purchase was on Feb 24 at 1.615 per share.

Similarly, the next big purchase was on March 11 at 1.54 per share.



Also, there was a big buy in April at 1.605 per share



A simple strategy which is what the comment  had alluded to, i.e. follow the chairman, would have paid off in the form of roughly a 20% return on capital assuming one bought at SGD 1.61 and sold today at 1.92 SGD.

As one can see, the share price is trending down. Hence, there may be some chance of the Chairman deploying his war-chest to scoop up some more shares.

However, it looks like 1.5-1.6$ is where he sees value.

Full Disclosure : I will be keeping an eye out for any insider transaction in CWT Ltd and deploying some cash to piggy-back


Disclaimer :- 

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures

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