It’s a convoluted maneuver. Sometime back OP needed to raise cash. So they exchanged part of their long cash equity position for a loan equity swap position and received a corresponding amount of cash less margin. I suspect since then their portfolio has come under further pressure and they are active sellers of both cash equity and equity swap positions. Hard to say when this will end. OP just lost their HK SFC license. Good chance they are aiming for a full liquidation of their fund.
On another note, let’s see the Q2 numbers. Think they will look fairly good. May have an additional 10mn cash in the kitty. I understand the need for a generous war chest to weather the cycle and investment needs. But the endless hoarding of cash is becoming a problem. A modest share buyback should be done at the minimum to help clear the OP overhang and return some earnings to shareholders. It’s been a long and rough ride.
MLX Price at posting:
29.3¢ Sentiment: Hold Disclosure: Held
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