OTAS has been flagging some interesting Insiders transactions in the regional market lately. These transactions are valuable to investors as they show how the stocks could perform well in the long run, or the opposite.
LG Chem (051910 KS)
The demand of the Electronic Vehicle Batteries has been growing rapidly, and LG Chem is one of the names that is well positioned.
From the OTAS news, the battery size of the market is estimated to reach a market size of $17.26 billion by 2021.
Looking at Graph 2 & 3 below, the share price of LG Chem has been corrected -18% from the peak in March. Since then, the Company management has been increasing stake for more than 16 times since April 2016.
Asia Large Cap (Graph 1)
LG Chem (Graph 2) – Green arrows represent the times of increasing stake
LG Chem (Graph 3)
On the other hand, OTAS flagged that the CEO and Independent Director of Commonwealth Bank of Australia (CBA AT) have been cutting stakes at A$77 levels. Market concern of the bank’s net margin shrinks as interest rate trend is declining, and worry about whether the bank can maintain its dividend pay-out. Would A$77 be a toppish level?
Article on Australian Banks a potentially catastrophic crisis
Commonwealth Bank of Australia (Graph 4)
Commonwealth Bank of Australia (Graph 5)