Corporate: Rural Funds directors walk the talk, buy $1.2m in stock

Three days after attacked by short-sellers, three Rural Funds Group (ASX: RFF) directors have bought $1.2 million in shares between them.

Bonitas Research dropped a bombshell in a research report released on Monday saying the stock was “worthless”. It led to the stock dropping over 40 per cent in a day.

We are short Rural Funds Group (#ASX: $RFF) and believe it is a Fraud. Expect $RFF #RFF to ultimately be worthless. New Fraud Report just released on our website https://t.co/c9zj9ObJr3 @ActivistShorts @FT @business @markets @WSJbusiness @ASX

— Bonitas Research (@BonitasResearch) August 6, 2019

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The company went into a trading halt then released a statement blasting the allegations as false. It said it was obtaining legal advice although it had also engaged EY to investigate the matters to assess RFM’s rejection.

But also yesterday, three directors topped up their holdings.

Guy Paynter bought $698,750, David Bryant bought $499,912 and Michael Carroll bought $29,808 – all up nearly $1.23 million.

While it is easy for anyone to make allegations online, investors were concerned because it was Bonitas. Bonitas’ allegations against Blue Sky Alternative Investments (ASX: BLA) led to Blue Sky falling up to 80 per cent this year, and it’s yet to recover.

Since Rural Funds’ response, its share price has made a significant recovery but is still slightly below last week’s levels.

In other ASX corporate news today…

Two days after Emu (ASX: EMU) responded to an ASX query about its financial condition and whether or not it was adequate to warrant being listed, it released a letter to its shareholders about its plans for the next few months. Its main focus is its precious metals project in Chile’s Maricunga Belt – Elevado.

It noted it had a budget of around $3 million for exploration activities and also disclosed it was reviewing opportunities in Australia and was looking for “low-cost, leading edge incisive technologies with a view to delivering high-value outcomes”.

QMS Media (ASX: QMS) are buying TLA Worldwide and in turn Stride Sports Management for $32.7 million. The firms offer talent management, merchandising and sports marketing services. CEO Barclay Nettlefold told shareholders this morning: “These acquisitions provide QMS Sport with an enhanced service offering that together creates a unique vertically integrated sports advertising platform.”