Director Trades: This agriculture director bought $4.2m then came back for more
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On the afternoon of Friday May 24, the chairman of Chinese agricultural stock Dongfang Modern Agricultural (ASX: DFM) Hongwei Cai bought $4.23 million in shares.
Then on Tuesday the 28th, he bought another $274,821. Now he now holds over 68 per cent of the company.
Dongfang has had an outstanding few years with an $84 million profit last year and record harvest figures. But the company believe it can continue to grow.
Ir recently acquired local food supplements business Bio Health and is tripling the size of its manufacturing facility. It’s also continuing to grow its orchards in China.
One common pitch of companies seeking business with or in China is the country’s growing middle class. This is true whether you’re a fruit grower or a miner seeking to sell to steel producers.
Zircon exporter Image Resources (ASX: IMA) announced last week it had signed its first offtake agreements with Chinese companies. Only a couple of days later, director Li Huang Cheng bought $462,500.
Despite the uncertainty of the Italian oil and gas industry, three Po Valley Energy (ASX: PVE) directors participated in a $1.2 million placement. Michael Masterman bought $224,000 and Byron Pirola and Kevin Bailey bought $100,000 each.
While the directors had agreed last December, the shareholders only signed off this week. Any placement affecting more than 15 per cent of the company has to be approved by shareholders. That is why you might see companies raise capital in distinct “tranches”.
One other director bought over a million dollars this week – Jupiter Mines director Priyank Thapliyal (ASX: JMS). Unlike Hongwei, he is a small shareholder only holding 2.93 per cent despite the trade.
While Jupiter is only 35.5 cents, in the last month three firms have tipped Jupiter for growth. Fosters Stockbroking, Cantor Fitzgerald and Hartleys set target prices of 61 cents, 65 cents and 42 cents respectively.
If Hartleys are right that purchase of 23.5 million shares will become $9.86 million. But if Cantor are right then it will grow to $15.27 million.
Despite the status quo prevailing in the recent South African election, Hartleys still rated sentiment in South Africa as a key risk.
Black Rock Mining (ASX: BKT) director Ian Murray bought $127,505 on market while Eastern Goldfields (ASX: EGS) director Peter Mansell bought $250,000 in a rights issue. The latter company is in the process of recapitalising, although it does not yet have a time frame for re-listing on the ASX.
Assetowl (ASX: AO1) director Simon Trevisan bought $219,950 in its rights issue. His colleagues Andrew Lane and Geoff Wilson participated as well, buying $99,000 and $10,000 respectively.
But the rights issue only raised $796,000 of the $1.25 million that was hoped for. The underwriter, Patersons Securities, is currently seeking to place the shortfall.
The third biggest trade this week, after Jupiter and Dongfang, was in “traffic-tech” stock Redflex (ASX: RDF). Adam Gray bought $590,652. Yes, by traffic-tech we mean red light and speed cameras.
But it also works with major road operators to intelligently manage them, such as changing speed limits and alerting drivers to speed changes and lane closures. So while at times traffic tech may be a curse it can be a blessing in disguise.
Seafarms Group (ASX: SFG) director Ian Trahir bought $105,000 in a rights issue. This was a more successful deal, meeting the prawn farmers’ expectations and raising over $4 million.
Three directors sold over $100,000 of their shares last week. The biggest seller was ARQ Group’s (ASX: ARQ) CEO Martin Mercer who sold $329,363; but apparently it was against his will. he told shareholders: “I am reluctantly selling shares to meet personal tax obligations arising from the vesting of performance rights.”
“I am very positive about the company’s growth outlook and I look forward to continuing to lead the company into the future.”
Cashwerkz (ASX: CWZ) director Brook Adcock sold $300,000 of stock. His 3Y notice said, “this was a strategic sale to an Australian Financial Institution to acquire a substantial allocation of shares”.
Finally, Firstwave Cloud Technology (ASX: FCT) director Scott Lidgett also sold $300,000. No reason was given although thanks to the sale and a dilution, his stake fell from 10.9 per cent to 6.8 per cent.
|DFM||Dongfang Modern Agriculture||Hongwei Cai||Buy||24 May||5,000,000||4225000||Off market||286,073,628|
|IMA||Image Resources||Li Huang Cheng||Buy||24-29 May||2,000,000||462500||On market||134,145,311|
|ARQ||ARQ Group||Martin Mercer||Sell||27 May||190,941||329363||On market||318,216|
|CWZ||CashWerkz||Brock Adcock||Sell||23 May||1,500,000||300000||Off market||54,239,679|
|FCT||Firstwave Cloud Technology||Scott Lidgett||Sell||30 May||1,000,000||300000||On market||19,011,990|
|DFM||Dongfang Modern Agriculture||Hongwei Cai||Buy||28 May||329,832||274821||On market||286,403,460|
|EGS||Eastern Goldfields||Peter Mansell||Buy||28 May||25,000,000||250000||Rights issue||25,000,000|
|PVE||Po Valley Energy||Michael Masterman||Buy||24 May||5,333,333||224000||Placement||162,026,327|
|AO1||Assetowl||Simon Trevisan||Buy||24 May||31,421,490||219950||Rights issue||48,146,520|
|BKT||Black Rock Mining||Ian Murray||Buy||21-24 May||1,291,842||127504.8||On market||1,508,706|
|SFG||Seafarms Group||Ian Trahar||Buy||29 May||1,166,662||105000||Rights issue||454,557,889|
|PVE||Po Valley Energy||Byron Pirola||Buy||24 May||2,380,952||100000||Placement||61,875,087|
|PVE||Po Valley Energy||Kevin Bailey||Buy||24 May||2,380,952||100000||Placement||135,109,121|
|RDF||RedFlex Holdings||Adam Gray||Buy||27-30 May||1,380,545||$590,651.99||On market||41,628,866|
|JMS||Jupiter Mines||Priyank Thapliyal||Buy||31 May||23,497,667||$6,814,323||On market||57,437,584|