Alset Inc. (AEI) is a small conglomerate with business segments running in a range of industrial sectors. As an established business, the company holds a proven track record and a stellar liquidity position. Despite this, the stock has been on a bearish tumble early this morning.
Alset Falls Despite Insiders Loading Up on Stock
After a relatively slow day on Friday, the stock for Alset Inc. (AEI) saw somewhat of a volume rush during the early hours on Monday, taking the stock down from its Friday closing price of $3.10 to a present price of $2. One interesting reality about AEI stock is the fact that the management owns more than half of its total outstanding shares. In fact, Chan Heng, who is now the CEO of the company has spent almost $8 million since last year, loading up on AEI shares. During this period, no insider has sold a single stock of Alset Inc.
Questions Raised about AEI’s Upcoming Offering
Despite insiders’ confidence in the prospects of Alset Inc., it is evident that the recent price fall suggests the market feels more pessimistic about the stock. News recently came that the company has been looking to turn towards a public offering, with the intention of raising proceeds for the purpose of working capital. Based on social media chatter, market participants have been raising several questions about the move, with many concerned about the lack of transparency with the decisions of Chan Heng. This is especially the case because the company’s liquidity position is already stellar with a quick ratio of 24.8.
AEI stock has been falling in the pre-market hours as market players continue to raise eyebrows toward the upcoming public offering. The need for this, with an already strong liquidity position, and the impacts of share dilution continuously seem to be coming forward.