Substantial sale of FEC puzzling

I AM writing as a public investor of Far East Consortium (FEC).

I was dismayed at the stock exchange disclosure of a substantial sale of FEC shares by managing director David Chiu.

While I accept that he has the right to sell shares at any time and at any price, I am puzzled that he has chosen to sell these shares at about half their book value worth.

This sale does not reflect good sound commercial judgment by the managing director.

The latest annual report dated August 27, 1993 shows that the group believes it will enter a high-growth period.

There should be no reason to sell at current price levels unless the company's present circumstances are not as presented in the report.