MEGB fell 19 cents to its closing price of RM2.15 on 13 January 2010

Today, MEGB fell 19 cents to RM2.15, which is 1 sen different with my cost price of RM2.14. Will it decline to further its lowest RM2.03? If that is likely to happen, it will be worth to buy. anyway, it is already quite attractive for me at current price level.






















It seems like Fidelity equity fund, significant shareholder of MEGB is being selling its stake in MEGB, according to my research from bursa website, they has been selling since 24 Sept 2010. On 11 & 12 Jan 2011, they continued selling its stake in MEGB as there are annoucement of change in shareholding of significant shareholders on Bursa website on 11 & 12 January 2011 as follows:

The initail shareholding of Fidelity was 5.34% (or approx. 21.9 million shares) on 18 May 2010 While SMALLCAP World fund (or approx 24.3 million shares) was 5.93. The price at mid-may is at around RM 3.70.

Thereafter, Fidelity's shareholding was increased to 9.5% or approx 39.0 million shares at 6 Sept 2010.
From 24 Sept 2010 onwards till now, Fidelity has been disposing MEGB and as refering to Bursa website, they are still holding 7.26% or 29.7 million shares as of 7 jan 2010.  A net disposal of Approx. 9.3 million share was done during 24 Sept 2010 to 7 jan 2010, about 3 moths time. Within this period, the disposal price is believed to be low than its cost price.
the disposal price is believed to be low than its cost price. What are they doing? i really need to learn and understand it. Meanwhile, the shareholding of SMALLCAP does not change during the these period.
On 12 & 13 jan 2011, the high volume was likely to be Filidety's disposal transaction. According to bursa list requirements, any changes in shareholding of signficant shareholder is required to made an announcement within 3-4days if i am not wrong. i will expect such annoucement on 18 and 19 jan 2011.
In view of Fidelity's activity, the share price is hardly go up. Probably, it could only go up after Fidelity ceases to become significant shareholder of MEGB that is shareholding less than 5%.
But i am still optimistic on MEGB's fundamental and business prospect, it is a long term investment. That may be an opportunity to grasp a lower price when this unwelcome foreign equity fund is selling Let look for long term, my target is EPS to be at 25 sen per share and PE at 12.