Director Trades: Is following Chinese billions a winning strategy?
Link copied to
The boss of Chinese orange farmer Dongfang Modern Agriculture (ASX:DFM) has spent more millions on his company as the share price continues to languish.
Hong Kong tycoon Hongwei Cai is the fresh-faced chairman of Dongfang who has been on a buying binge since September last year.
He owns 66 per cent of the fruit grower. He once owned 80 per cent of the company, in 2016, but sold to let four new investors in that year. He has been slowly buying on market since then to rebuild his stake.
Dongfang has been listed since late 2015 and revenue peaked last year at $245m. The profit dipped to a mere $88m.
They’re numbers most sub-$400m company investors would dream about, but Dongfang shareholders in Australia have voiced concerns about a lack of transparency and the recurring lack of dividend.
In what may be the ASX’s fastest ever takeover or the smallest ASX company, Anchor Resources is gone and the chairman Jianguang Wang just made $1m.
Anchor only had a market cap of $683,000 and the buyer got the whole thing for $1.1m.
A Chinese buyer offered 2c a share for the company and all of its $17m debt. What they’re buying are base metal exploration licences in NSW and Queensland.
Lev Mizikovsky’s heavyweight deals continue. Last week he received shares he’d bought in Queensland home builder Tamawood’s (ASX:TWD) March capital raising at $3.65 but sold $1m — half — for $3.60 a pop.
Mizikovsky has been a frequent buyer since November, although many of his trades have been under the $100,000 level this column usually reports on.
He still doesn’t have total personal control of Tamawood. Despite buying 567,000 shares (and selling 278,000) Mizikovksy’s shareholding remains under half of the company, at 49.28 per cent.
Energy Action (ASX:EAX) has not yet managed to right the ship after confirming in December that it was considering its options, after warning of a financial washout.
But it’s on track enough for cofounder and chairman Murray Bleach to venture back into the market, the first director to put their head above the parapet in 18 months.
Bleach bought $187,529 worth of stock then sold $43,441 of stock.
Energy Action’s half year results collapsed from a profit to a $10m loss, as reported in February, and earlier this month the company reported cost cutting, redundancies and repositioning its services to remain viable.
And finally, RMA Global (ASX:RMY) chair David Williams now owns 31.5 per cent of the real estate agent profile site. We covered why Williams has been collecting stock in the newly listed company recently here.
|Code||Company||Director||Change||Date||Volume||$||What||Total holdings controlled|
|DFM||Dongfang Modern Agriculture Holdings||Hongwei Cai||Buy||16 April||5,000,000||$4,550,000||Off market||280,751,628|
|TWD||Tamawood||Lev Mizikovsky||Buy||17 April||566,821||$2,068,897||Capital raising||12947096|
|AHR||Anchor Resources||Jianguang Wang||Sell||15 April||50,711,165||$1,014,223||Acquisition||0|
|TWD||Tamawood||Lev Mizikovsky||Sell||12 April||278,000||$1,000,800||On market||12380275|
|BLK||Blackham Resources||Milan Jerkovic||Buy||31 January||62,704,501||$940,568||Capital raising||72,218,771|
|CMM||Capricorn Metals||Timothy Kestrell||Buy||9-12 April||7687458||$628,282||On market||16,957,458|
|RMA||RMA Global||David Williams||Buy||9-10 April||2,307,045||$415,268||On market||116,045,341|
|AZI||Alta Zinc||Alexander S Burns||Buy||12 April||101,839,785||$407,359||On market||353,564,515|
|AMH||AMCIL||Michael Hirst||Buy||9-10 April||345,000||$292,735||On market||345,000|
|AZI||Alta Zinc||Marcello Davide Cardaci||Buy||12 April||58,977,649||$235,911||Capital raising||132,699,710|
|EAX||Energy Action||Murray Bleach||Buy||10-12 April||627,984||$187,529||On market||2,310,854|
|PNN||PepinNini||Rebecca Holland-Kennedy||Buy||12 April||48,866,547||$146,600||Capital raising||146,599,641|
|OEL||Otto Energy||Kevin Small||Buy||11-12 April||2,325,378||$129,896||On market||14056043|
|FYI||FYI Resources||Roland Hill||Buy||11 April||2,000,000||$120,000||Off market||13661632|