GAMUDA (5398) make it as one of the top gainer today on FBMKLCI, gained 14 sens closed at RM3.75 with a nice supportive volume of 29.8millions shares transacted. Looking back early last week, GAMUDA is trading at around RM3.40 in less than 2 weeks it moved up around 10%! Why? Look who is buying the company shares, Dato’ Lin Yun Ling, Gamuda Group Managing Director, one of the KEY person in the company.


Looking back at GAMUDA (5398) company announcement, the acquisition announcement are first filed with Bursa at 31st Oct and the acquisition activity actually started back at 25th Oct. Here’s a summary copied from Bursa,

Type of transaction
Date of change
No of securities
Price Transacted (RM)
Acquired
25/10/2012
8,414,500
3.499 
Acquired
29/10/2012
4,949,100
3.548 
Acquired
31/10/2012
5,110,100
3.593 

Take note the above shares are acquired through open market. On top of the open market acquisition, GAMUDA do file another company announcement today that it also acquired another 7 millions shares at RM3.58 through off market acquisition on 1st November. You can see the obvious increase in volume with a strong break out of the bollinger band in the following chart during the acquisition.





Is usually a very positive sign when a key person in a listed company start accumulating the company shares, in HUGE chunk, because who knows about the company better than these guys? By saying that, does Dato’ Lin action indicate GAMUDA (5398) is standing at a very attractive price? Do some simple calculation give you the result that he has spent over RM90millions in the past few days to acquire shares in GAMUDA! Based on information from Forbes.com, Dato’ Lin have a net worth of USD$150 million, which is roughly RM450 million. So far he has spent around 20% of his net worth over the past few days in buying GAMUDA shares, does that mean anything to you? It sounds to me he is very bright about the company future!


Based on record found on Bursa information (up until 1999), Dato’ Lin has never acquire the company shares from open market before, he normally acquire shares through ESOS, Bonus Issues, Warrants and etc. Back in early 2008 Dato’ Lin hold around 5% of GAMUDA(5398) shares, which is traded around RM5 before he dumped around 70% of the shares in 20th Feb 2008. Those are the time where FBMKLCI start crashing too and GAMUDA closed below RM1.5 at the end of Oct 2008, FBMKLCI closed below 850 points. Take a look at the chart,





Is 4 years now, is Dato’ Lin back in action and ready to start accumulating again? So far he is holding 2.89% of Gamuda shares, will he bring it up to 5%? I definitely hope so, cause I’m still holding the shares. :D Looking at it from a technical perspective, the immediate resistance level stands at RM3.85 which reached in early 2012, if the acquisition keep going tomorrow, that resistance will be broken easily and looking next level of resistance standing at RM4.20 which is archived in early 2011. Good luck and have fun trading! :D