China MinZhong

China MinZhong: CMIA Capital Partners (CMIA), where Anson Wang is co-founder and managing partner (and also non-executive director of China Minzhong), sold 4.4m China Minzhong shares on 14 Nov ‘12 at 83c each, reducing their holdings from 36.4m (6.53% of the company) to 32m shares (5.74%). Before the latest share sale, CMIA had sold 47m shares, reducing their stake from 15.5% to 6.53% between 15 Apr ’10 to 11 May ’11 from a high of $1.83 to low of $1.14 a share. The latest share sale was likely done in an off-market transaction given that on 14 Nov ’12 when the sale was done, the mkt price was between 75.5 to 77.5c but CMIA’s disclosed sale price was 83c/share. While it should be no surprise that CMIA has continued to sell China Minzhong’s shares, sentiment in the stock could take a short-term hit given that their latest sale price of 83 cents is 53% below their last sale price of $1.78 in May ’11 and also 27% below the lowest price ($1.14) they had sold at in Nov ’10. Besides CMIA’s remaining 32m shares, the mkt may also start to worry about Olympus Leaf’s 57.2m (10.4%) remaining given that they had already sold 77m shares between $1.15 to $1.70 from 15 Apr ’10 to 12 May ’11. Thus, notwithstanding China Minzhong’s improving fundamentals and low valuations, given renewed concerns about share overhang, it could weigh on the stocks ability to outperform.