Michelle Payne told doubters to 'get stuffed'. Best way to do that as a company director is four your company to do well. (Pic: Getty)
Director Trades: A great way to say ‘stuff the doubters’… or prevent being stuffed
Director Trades
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This week’s list of director trades over $100,000 includes directors that are buying shares when the market (or a segment of it) think otherwise.
One way investors bet against a stock is shorting and since we began our fortnightly Short & Caught column we have noticed graphite explorer Syrah Resources (ASX: SYR) a handful of times. Its own James Askew defied the shorters by buying $124,500 on market last Tuesday.
A short-seller’s allegations against Rural Funds Trust (ASX: RFF) sent its shares plunging fast. Not only did the company’s directors rebuke the allegations in word, they also did so in action. Guy Paynter bought $698,750 and David Bryant bought $499,912.
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Whichever way this saga ends, someone will lose because as the board noted, Bonitas stand to make substantial financial gain if Rural falls due to its short interest in the stock. Having famously “outed” Blue Sky Alternative Investments (ASX: BLA), Bonitas’ reputation won’t come out of this saga as solid as before if it’s shown to be wrong.
‘Long’ investors can hurt too, but you can also defy them
While Kalium Lakes (ASX: KLL) is still up 77 per cent in 2019 it has fallen 24 per cent in the past couple of weeks. Malcolm Randall bought $100,000 in a placement.
Euroz (ASX: EZL) has also had a few tough weeks, falling from over $1.30 to $1.07 since mid-June but Greg Chessell bought $115,720.
Candy Club (ASX: CLB) has been in decline since its IPO. It is now at 6 cents having listed at 20 cents. But Chi Kan Tang bought $565,000 and James Baillieu bought $174,258. Baillieu became a substantial holder for the first time while Chi Kan Tang consolidated his position as largest shareholder.
In contrast Devex Resources (ASX: DEV) has enjoyed a great August, gaining 52 per cent. Tim Goydner bought $160,535 on market.
The sellers
Consolidated Zinc (ASX: CZL) director Stephen Copulos sold $240,000 of stock but finished the week with more stock than before. That’s because in the same week he turned $927,000 of convertible notes into shares.
The one other director who sold over $100,000 this week was Digital Wine Ventures’ (ASX: DW8) Dean Taylor. He sold $105,564 and had no choice – it was part of a divorce settlement.
| Code | Company | Director | Change | Date | Volume | $ | What |
|---|---|---|---|---|---|---|---|
| CZL | Consolidated Zinc | Stephen Copulos | Sell | 30 July | 20,000,000 | $240,000 | Off market |
| DW8 | Digital Wine Ventures | Dean Taylor | Sell | 30 July | 16,630,566 | $105,564 | On market |
| CLB | Candy Club | Chi Kan Tang | Buy | 5 August | 7,062,730 | $565,000 | Rights Issue |
| CLB | Candy Club | James Bailleu | Buy | 5 August | 2,178,228 | $174,258 | Rights Issue |
| SYR | Syrah Resources | James Askew | Buy | 6 August | 150,000 | $124,500 | On market |
| EZL | Euroz | Greg Chessell | Buy | 7 August | 106,532 | $115,720 | DRP & on market |
| DEV | Devex Resources | Tim Goyder | Buy | 8 August | 2,000,000 | $160,535 | On market |
| RFF | Rural Funds Trust | Guy Paynter | Buy | 8 August | 400,000 | $698,750 | On market |
| RFF | Rural Funds Trust | David Bryant | Buy | 8 August | 292,500 | $499,912 | On market |
| KLL | Kalium Lakes | Macolm Randall | Buy | 2 August | 200,000 | $100,000 | Placement |
