Director Trades: The people with the perfect timing
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Memphasys (ASX:MEM) directors bought at exactly the right moment last week — just before a 14 per cent spike in the company’s share price.
On Friday, the sperm-separator gave Monash IVF its agreed pound of flesh of 4m shares, or $80,000 worth.
The share price shot up to 2.5c when investors realised the deal, organised in September last year for Monash’s consulting services, had been done.
CEO Alison Coutts converted a pile of debt owed to her for just under 2c a share while the other driving force behind the company Andrew Goodall also converted some debt but also bought on market as well.
He got in at exactly 2c.
The pair own 39 per cent of the company.
Coutts and Goodall have been tidying the company up after years of fights over legacy legal claims and an ASIC investigation, and are working towards commercialising the flagship ‘Felix’, a device that separates good human sperm from the bad.
Coutts said last week testing by their “key opinion leaders”, who hail from Europe, the US and even Iran, is “imminent”.
Finally, Hot Chili (ASX:HCH) chairman Murray Black took a turn on the epic rollercoaster that is this company’s share price.
He bought into the recent cap raise which was selling shares at 1c.
Weeks after the cap raise was announced the stock unexpected surged to as high as 3.2c on very little news.
Hot Chili said in a statement to the ASX that maybe it was due to a deal they’d announced weeks earlier, that was re-presented at a mining conference at the end of February.
The market is not yet believing Secos’ (ASX:SES) story about biodegradable plastic, even though it’s been telling it for over 18 months now, but the directors kind of have to keep putting money in.
The boss Richard Tegoni turned $100,000 of convertible notes into stock and a director, Donald Haller, bought $192,308 of stock market.
The stock on Friday was 0.1c above all-time lows, at 3.9c, as the company struggles to shake off the terminal legacy businesses that don’t involve turtle-friendly plastic.
It tried to find a buyer for the Aussie films business (that’s plastic films on things like tampons and nappies, not the cinematic kind) but no one wanted it.
It said in February the 9 per cent dip in half year revenue and almost doubling of the loss wasn’t a reflection of how it sees the business, promising that when the new Malaysian plant is fully running, things will be better.
There were two big sellers last week, Megan Baldwin at Opthea (ASX:OPT) and Greg McCormack at tree grower Midway (ASX:MWY).
Baldwin, CEO and managing director of the eye company, sold off $440,220 of stock to cover a tax debt that popped up out of options exercised in 2015 and shares coming out of escrow in 2016.
McCormack was the founder director of Midway in 1980 and sold down, alongside another major shareholder, in order to make some space for new institutional investors.
Those new investors got in for a steal for $3.60 a share, 40c lower than the high Midway hit at the start of March.
Interestingly, the board didn’t know.
“The decision to sell down some of their shareholding in Midway was made independently by the substantial shareholders but reflects a desire of the board of directors to broaden and deepen the shareholder base,” the company reported ahead of the director and substantial shareholder notices.