It's interesting to note from The Edge dd. 25th May 2015, the Australian mining company Siburan Resources Ltd (SBU) which is acquiring a 16.67% stake in China Automobile Parts Holdings Ltd (CAP) for 60 sen per share counts some prominent Malaysian corporate figures among its major shareholders e.g. Negeri Sembilan royalty Tunku Naquiyuddin Tuanku Ja'afar who owns 5 million shares or a 2% stake and RH Resources Ltd an associate of Rimbunan Hijau Group which owns 10.33 million shares or a 4.18% stake.

The business alliance between SBU an upstream exploration company involved in a tungsten project in New Zealand and CAP will allow the latter to secure a new supply line of tungsten which is highly sought after and has high end applications in the automotive and mobile phone industries.

Hence, these factors explain why Credit Suisse was drawn to take a substantial 6 stake or some 39 million shares in CAP between late May and early June; they must have planned their investment ahead of news which broke on Friday and made purchases the following week so as to avoid an impression of insider trading. Any subsequent divestment (which by the way is noticeably too small) is not unusual for a foreign investor seeking to protect its investment against a depreciating currency and has nothing to do with CAP whose fundamentals remain unchanged.

That's why the recent decline in CAP price was unwarranted. If the market understands the events better, the stock will be back trading at 50 sen and above come Monday. Any less than a fair price is a steal.

                                                                                                                                              Ezra, 14 June 2015