Director trades: That moment when you get your new stock and it’s already underwater
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You know that feeling when you buy something and immediately see it on sale somewhere else?
That’s how smart-concreter directors Douglas and Gregory Solomon would have felt after together putting $409,748 into a 5.4c cap raise.
However when their purchase finally came in the stock was trading at a 7 per cent discount.
And like the last Christmas odds and ends still on the racks at the end of January, but at the end of the week you could pick up Eden Innovations (ASX:EDE) stock for a 12 per cent discount on the cap raise price.
There’s no lowest price matching guarantee on the ASX and we couldn’t help thinking, what a bugger.
Family business Embelton (ASX:EMB) — famous for doing the metal bending for the sculptures on Melbourne’s Southbank and the handrails in Crown Casino — popped up last week as dad picked up $645,000 of stock.
The off-market trade came via a super fund named for Elizabeth Montgomery — that’s Elizabeth M, not US pinup Elizabeth V who was the star of TV show Bewitched and is dead.
George Embelton now owns 46 per cent of the furnishings fabricator and has been chair for 39 years.
James Embelton is the managing director, and the company has two other independent directors.
Sunbridge’s (ASX:SBB) Australian board were feeling a little less like the “well-groomed and upper middle class gentleman” they sell clothes to in China, after missing a big share sale by the managing director and CEO — from November.
Jia Yin Xu sold $352,000 worth of stock, but it was only reported this week.
To be fair, the ASX didn’t notice either. It only issued the standard ‘please explain’ note after Sunbridge put out their notice.
Mr Xu has made four trades worth $1.3m since Sunbridge listed in 2013, all sales, and he started selling in 2016.
Since 2015 he’s been taking home $100,000-odd as a salary for being the boss; the gravy years were 2013 and 2014 when he was getting $200,000 to $400,000 for the job.
Alto Metals (ASX:AME) chairman Terry Wheeler is clearly confident about something, converting a loan into shares at a price of 4.7c a share.
However, that’s not a price seen since early January and the company is fending off a takeover offer from Middle Island Resources (ASX:MDI), priced at — you guessed it — not quite 4.7c
Middle Island is offering an all-stock deal valuing the shares at 4.4c.
The bidder reckons their deal is pretty sweet, throwing around numbers like “61 per cent premium”, but a glance at both companies’ share price charts suggests there’s something fishy going on.
Alto’s stock is near 52-week lows while Middle Island’s offer, based of course on the price of its own shares, was made on the day its stock peaked at a five month high.
If this deal were to work, the new company would still have less than $500,000 to spend on their now-neighbouring WA Sandstone gold project.