Significant Trading Interest for this Electronics Components Distributor

Listed electronics components distributor, Serial System, surged some 43 per cent on 14 June on heavy volume after founder and company chief executive Derek Goh announced that he has bought shares in the company.

The stock closed at 14.5 cents, up 4.3 cents or around 42 per cent, on a volume of 53.38 million shares at the end of trading on Monday. This made it the 11th most active stock and third highest percentage gainer during the Monday session.

Source: ShareInvestor C2 Chart

The price surge comes after the company announced last week that Mr. Goh had acquired 461,000 serial Systems shares last Friday for S$47,072.71. This works out to average price of 10.2 cents per share.

Mr. Goh now holds direct and deemed interest of 363,023,070 shares or 40.5 per cent of company.

About a week ago, the company unveiled a strong set of first quarter results, showing net profit after tax of US$2.7 million for the three months ended March 31, 2021. This was a sharp reversal from a loss of US$6.5 million during the same period a year earlier.

Speaking to SI, the company attributed the stronger performance to its strategies to widen its supplier and customer base and improve efficiencies following the outbreak of COVID-19.

Mr. Goh said the company was seeing a strong turnaround in its fortunes.

“There is a semiconductor shortage worldwide which strengthens the value proposition of an established distributor such as ourselves,” he said. “We have increased our base of chip suppliers as well as a range of customers while continuing to focus on growth sectors such as automobile, data centres and 5G connectivity.”

He added that the so-called ‘technology war’ and chip shortage was playing out in favour of Serial Systems.

Click here to find out more about the recent interview with Derek Goh: https://www.investor-one.com/editorial/17291-Riding-on-the-Semiconductor-TailwindAn-Interview-with-Serial-Systems-Top-Management