Yamada

Yamada: The mushroom farmer surged 9.8% today, with market watchers highlighting that a block of 54.1m nil-paid rights were transacted on 3 Sep.

While no official data has been released in regards to the parties behind the rights transaction, some observers were quick to hypothesize that the 54.1m rights size matched that of Global Yellow Pages’ entitlement, given its current shareholding of 108.1m shares (1 rights for every 2 shares held).

With Yamada’s CEO, Chen Qiuhai undertaking to subscribe for his rights entitlement, this effectively rules him out to be the seller.

Meanwhile, some traders are speculating that the potential buyer of the rights shares could be substantial shareholder Sam Goi, who currently owns a 7.8% stake in Yamada via 90% owned Hydrex International, as he had underwritten to subscribe for rights not taken up by shareholders.

Valuation for Yamada is undemanding, at just 2.5x FY15 P/E and 0.24x P/B.