Jan 19, 2011
Liquidity analysis has in most of the cases been my main tool for determining where smart money and dumb money are located in the stock market, and whether they are net seller or net buyer at any given point. My point here is closely watching institutional and “insider” activities, i.e. board members and managers who run the companies, could provide traders with a substantial advantage.
An instance to highlight the above theme is CX Technology (TAIEX: 2415), which manufactures magnetic induction speak parts for world-renowned companies, such as BOSE, Harman Kardon and JBL. CX’s chairman and his brother are said to have made “sound” investments into Vietnam’s technology, real estate and stock market sectors; examples of which include Phu My New City Center and Phu My Bridge, both in District 7, Ho Chi Minh City.
Another less well-known investment of CX Technology in Vietnam is Fortune Securities Corporation (HNX: PHS), which currently accounts for 1.68% market share of total volume on the HOSE. My gut feelings are that investors should keep an eye on this small cap, as PHS is implementing radical business model revision in an attempt to prepare itself to capture additional market share with a focus on retail.