ForelandFabrictech

ForelandFabrictech: Found and exec chairman to sell 30.8m of his own shares at $0.16 approx 33% to closing of $0.12. One investor who is also one of the top ten major customers of co will take up 20m shares. After the placement, his stake will fall from 58.1% to 51.9% but will cont to have majority control…

Co expects that the performance of 1Q2011 (net profit of Rmb28.3m 22-fold yoy) to continue on to 2Q2011. Co trades at 6.3x P/E and has a net cash position of $111.4m (mkt cap approx $60m). However, the overhang caused by prev S-chips accounting problems is likely weighing on the stock.