Sam Goi only bought an additional 25,000 shares at an average price of 11.9cts, costing him only around $3K. Interestingly, this rounded his total holdings to just over 18%.... maybe he like this number! Time will tell if he will continue to buy more.
Shares are currently trading below its recent 2 for 5 rights issue at 12cts. Also, I will be very cautious of companies that will be impacted when the economy turns south as restaurant overheads are not easy to manage during such times.
Tung Lok has developed a number of good brands and I am sure there is hidden potential value in these brands. If I recall correctly, Zhou Holdings, with 38% shareholdings, is partly owned by Andrew Tjioe. After all these years, I am sure he has relationships with a number of other key shareholders. Hence, any 'changes' is likely to have to go through him.
Andrew is a great guy who can make anyone feel at home. He has lots of influential friends and is also a good brand ambassador for Tung Lok. It is clear that Andrew enjoys his work tremendously. As always, you have to read in between the lines.
With $10 million operating loss, Tung Lok need to think of ways to cut cost, rental and labor. Sheng Siong on the other hand has cut cost by buying one supermarket instead of renting. Let us see how Tung Lok work around before deciding on investing. I have been to Tung Lok a few times before the past few years and the price of the dishes is getting higher and now out of my reach. I think Tung Lok is more for the richer folks..