Superhero strength and superhero cash generating abilities indeed best describe Fu Yu Corporation ("Fu Yu Corp"). Earlier this week, I was surprised to see that Fu Yu Corp stock price has shot up by 40% relative to my average entry purchase price of S$0.205. Turns out that the trio co-founders has sold off the majority of their stakes to a private equity fund. The co-founders have sold off 29.8% of their stakes, around 224.4Mil shares of Fu Yu Corp, for S$58.3Mil to local fund management firm, Pilgrim Partners Asia. This works out to a valuation of S$0.26 per share.

1. Is Fu Yu Corp overvalued at S$0.290 given last major sales is at S$0.26 per share? Time to sell?

Based on net assets per share, it is showing S$0.217 as per the recent announcement. However, there was an analysis report by UOB Kay Hian which had interviewed the management then to...