Get Nice (64.HK) Is Getting Nicer

My wife and I first bought this stock, Get Nice Holdings (64.HK), ion 5^th April 2016 and later added more on 1^st Aug 2017. Our average price was at $0.2748. This stock generally gave 2 cents dividend in a year, and the last declared dividend of 1 cent was xd just last week on 30 Aug 2017, and payable on 13 Sep 2017. We have treated our investment of this stock as our fixed deposit as we have been enjoying a solid dividend yield of 7.28% based on our purchase price. The price movements have been in the doldrums since we purchased it but we do not mind at all as long as the company maintains its low price-earnings ratio and delivers to us about 7% dividend yield a year.

It closed at 31.5 cents today, 4 Sep 2017, up 5%, with volume spike too. This was probably due to the recent rampant purchases by the Chairman and CEO of Get Nice, Mr Hung Hon Man, with the last being the purchase of 4,000,000 shares at 30.5 cents done on 28 Aug which increased his shareholding from 29.28% to 29.33%, which is very close to the 30% threshold for a general offer to be made under the Codes on Takeovers and Mergers.

The codes mandate that the interested party has to make a general offer to the rest of the shareholders with generally a higher bid vis-à-vis his last purchase price from the open market if the party's aggregate shareholdings amount to 30% or more of the voting rights of the company unless otherwise decided by the Securities & Futures Commission of Hong Kong.

Get Nice (64.HK) had some positive price movements lately. Its 72% owned subsidiary, Get Nice Finance (1469.HK) has surged in the past month much more in terms of percentage and its p/e is now 16.3x with the closing price at $1.79. The p/e of Get Nice (64.HK) is only 7.1x, still considered vastly undervalued.

Even if this does not end up a general takeover offer, I will enjoy the ride and the solid dividend yield of 6.35% at the current price, knowing that the CEO is confident of the development of the company.

Superphang
http://superphang.blogspot.sg