China Minzhong's share price gapped down today and formed a long black candle on the back of very high volume.
Apparently, "one party sold 57.23 million shares at S$0.80 each.
"A trader said one of China Minzhong's shareholders had sold its entire stake in the company through a private placement.
"According to Thomson Reuters data, Olympus Capital Holdings Asia, is the company's third largest shareholder, with 57.23 million shares or a 10.3 per cent stake.
Franklin Templeton Investments Corp is the second largest shareholder with a 12.2 per cent stake, or 68.13 million shares." (Source: REUTERS, 6 Dec 12.)
I do not know why the investor decided to sell especially when the fundamentals of the company have been improving. However, if there is no material deterioration in fundamentals, this correction is an opportunity to accumulate shares of the company cheaper.
Technically, the negative ......