Director Trades: It was rush hour all week; 21 $100k+ trades worth $17.8m took place
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Last week was one of the busiest weeks all year for director trades. 21 directors engaged in transactions of $100,000 or more and the total value was $17.78 million.
Four trades were over a million dollars and the biggest of all was the first to be declared to the ASX on Monday. Eagle Health Holdings (ASX: EHH) CEO Zhang Mingwang sold approximately a quarter of his stake in the company for $7.5 million.
The closest thing to a reason given was Mingwang’s declaration it would increase liquidity in the stock. Indeed he is correct since prior to the trade he held nearly 40 per cent of the company. Now he only has 28 per cent.
Despite the supplement maker boasting an $18 million profit in 2018, it has fallen over 20 per cent in the last month.
The other million dollar sale was undertaken by Rameulis Resources (ASX: RMS) managing director Mark Zeptner who sold $1.3 million in stock rights after exercising options.
Since 2014, Rameulis has increased over 20 times as the company has progressed from merely looking for gold to producing nearly a million ounces of gold (a threshold it is expected to cross soon).
But to use options to sell you have to buy in the first place and Fatfish Blockchain (ASX: FFG) director Gan Nyap Liou bought $1.1 million and did not sell.
One other director bought over a million in stock and it was despite three brokers (Ord Minnett, Morgans and Taylor Collison) recommending ‘Hold’ rather than ‘Buy’ in recent weeks.
Ardent Leisure Group’s (ASX: ALG) Gary Weiss bought $2.5 million in shares. Ord Minnett, and Morgans ‘Hold’ calls came even though they set target prices over 40 per cent above its current price.
As we reported on Friday, gold miner Beacon Minerals (ASX: BCN) fell short of the funds it wanted in its capital raise by a third. Geoffrey Greenhill and Graham McGarry bought nearly $1.6 million between them to make up the shortfall.
Australian Family Legal (ASX: AFL) is rising out of the ashes of Navigator Resources, anticipated to commence trading this week.
Despite being expected to resign, former Navigator directors Joshua McKean and Gregory Ruddock bought $400,000 between them as part of the recapitalisation.
One sign it might be time to buy is when your company is finding massive diamonds and making millions from them. Last week Lucapa Diamond (ASX: LOM) sold US$22.1 million in diamonds to date this year and once again showed its discoveries.
Director Ross Stanley bought $161,719 in the last week. Unfortunately for the entire board, options held by multiple directors at 53 cents per share expired last Sunday.
On Friday Stockhead reported Australia could become a major player in the silica market. VRX Silica (ASX: VRX) director Peter Pawlowitsch bought $200,000 in a placement.
Only two weeks ago Hartleys analyst John Macdonald, headlining his report with the words “There’s money in shifting sand”, tipped the stock to nearly triple to 18 cents.
Last week’s Director Trades wrap reported Image Resources (ASX: IMA) director Li Huang Cheng bought $462,500 in stock right as it signed its first off-take agreements. This week Li bought again, acquiring $301,800 in shares.
ARQ Group (ASX: ARQ) director Andrew Reitzner bought $157,839 last week after buying $44,286 the week before.
While we’re on the subject of ARQ, the week before last his colleague Martin Mercer sold $329,363 due to a tax bill. Presumably it’s been settled because on Thursday he bought some of those shares back – $25,000 to be exact.