Kuo Hsing Li Spends HK$461k On Mei Ah Entertainment Group Stock

Whilst it may not be a huge deal, we thought it was good to see that the Mei Ah Entertainment Group Limited (HKG:391) Founder & Chairman, Kuo Hsing Li, recently bought HK$461k worth of stock, for HK$0.10 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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Mei Ah Entertainment Group Insider Transactions Over The Last Year

Notably, that recent purchase by Kuo Hsing Li is the biggest insider purchase of Mei Ah Entertainment Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is HK$0.11. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Kuo Hsing Li.

Kuo Hsing Li bought 22.36m shares over the last 12 months at an average price of HK$0.099. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Mei Ah Entertainment Group

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Mei Ah Entertainment Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mei Ah Entertainment Group insiders own 63% of the company, currently worth about HK$405m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Mei Ah Entertainment Group Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Mei Ah Entertainment Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mei Ah Entertainment Group. For example - Mei Ah Entertainment Group has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.