Last week three people illustrated how you get rich from being a director of a publicly traded company: get given stock or options and sell when the price is high.
Mike Ververka, the boss of online lottery company Jumbo Interactive (ASX:JIN), made $2.2m by converting options into stock and then selling up.
He’s made a cash profit of $17.7m since September last year, from exercising options he received as incentives to grow the company.
His options were worth $3.50 when he received them but on Friday the Jumbo share price was $16.80.
At bike dashcam maker Cycliq (ASX:CYQ), chairman/CEO Chris Singleton also got some incentives as well as stock as an interest payment on a loan he’d made to the company.
The incentive shares were worth a solid $68,827 — 0.7c — when the stock was trading at 0.3c on Friday. The interest shares were also priced at 0.7c.
Cirralto (ASX:CRO) managing director Adrian Floate is still on the journey, but has the right idea.
He’s being partly paid in stock: $103,996 worth.
The stock he was paid is worth slightly more than the market price of the shares — 0.95c versus 0.8c — much like with Singleton. If both men are confident in where their companies can go, it’d be well worth holding on a selling once the share prices have some upwards momentum.
Three of the largest buyers last week were picking up stock on market — that is, paying for it out of their own pocket because they want to, not because the company is raising money or giving away free stuff.
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The buying was led by one of the few women to ever appear among the big director traders, Katrina Doyle at Alcidion (ASX:ALC).
Given the health software maker has been on a massive run since mid-April, Doyle didn’t exactly time her purchase well.
She bought on April 26, eight days after Alicidion’s share price took off after two years in the wilderness.
But not to worry: on Friday it was still climbing.
Two directors were selling on market.
One of those sellers, Justin Osborne at Gold Road (ASX:GOR), said he was only selling to pay off a tax bill.
Johns Lyng Group’s (ASX:JLG) Adrian Gleeson didn’t say why he sold $404,000 of stock.
Code | Company | Director | Change | Date | Volume | $ | What | Total holdings controlled |
---|---|---|---|---|---|---|---|---|
JIN | Jumbo Interactive | Mike Veverka | Buy | 23-30 April | 250,000 | $3,072,125 | Exercise of options | 9656848 |
ATS | Australis Oil & Gas | Jonathan Stewart | Buy | 30 April | 2,857,143 | $1,000,000 | Placement | 65835002 |
JLG | Johns Lyng Group | Adrian Gleeson | Sell | 24 April | 130,000 | $404,427 | On market | 1,442,517 |
MPR | MPower Group | Nathan Wise | Buy | 1 May | 6,663,461 | $346,500 | Placement | 77,071,518 |
GOR | Gold Road Resources | Justin Osborne | Sell | 30 April & 1 May | 184,175 | $171,060 | On market | 4381235 |
ALC | Alcidion Group | Katrina Doyle | Buy | 26 April | 2,000,000 | $165,400 | On market | 33156347 |
ASG | Autosports Group | Nicholas Pagent | Buy | 17-18 April | 138,000 | $165,398 | On market | 104,452,574 |
DUB | Dubber Corporation | Peter Pawlowitsch | Buy | 24 April | 263,157 | $100,000 | On market | 3409348 |
CRO | Cirralto | Adrian Floate | Buy | 2 May | 10,947,013 | $103,996 | Shares in lieu of director fees | 55,870,291 |
CYQ | Cycliq Group | Chris Singleton | Buy | 1 May | 14,475,286 | $101,327 | Shares as incentives and as interest on a loan. | 22,575,286 |