Director Trades: When you’ve bought before and made millions, it’s time to buy more
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There are many signs it’s time to buy. Some include making millions from selling diamonds or your company is listing in London.
But evidently the most obvious sign is when earlier trades have made you money.
When Vaughan Bowen joined Uniti Wireless (ASX: UWL), he declared his confidence in the company and bought $951,560.62. On Wednesday we reported his stake was worth $4.4 million thanks to its rise in recent months through company growth and acquisitions.
Since then the share price risen even further and that parcel would be worth $5.7 million – yes, it rose $1.3 million in just two days.
Early last week he topped up his holdings by another $1.55 million and because the share price is now $1.80 that purchase is now worth $2.35 million and his total stake over $8 million.
Image Resources (ASX: IMA) director Li Huang Cheng bought $13 million back in April 2018. Thanks to the share price rise from 10 cents to 24 cents, now that would be $31.7 million.
Li bought another $462,500 in late May (which would now be $480,000) and recently he bought another $240,000. The zircon explorer has been quiet in recent weeks but at the end of last month secured sales agreements to export its mineral concentrate to China.
MGM Wireless’ (ASX: MWR) Mark Fortunatow was another buyer this week having chipped in $150,000. In late 2017 he bought $122,500 and thanks to its rise from 35 cents to $3.25, that would now be worth $1.1 million.
Sometimes directors can buy together and Traka Resources (ASX: TKL) directors Neil Tomkinson and Patrick Verbeek did just that, buying $198,249 each in a rights issue.
At 1.2 cents there’s plenty of room to grow but considering there was a 65 per cent shortfall in the offer, there aren’t many other believers. One other was Patrick Verbeek who put in $57,556.
Magnis Energy Technologies (ASX: MNS), are one of the more intriguing battery metal players because it does both mining and manufacturing. Last week Stockhead attended the Bloomberg Electric Vehicles Outlook and heard the EV revolution is some time away in Australia.
But EVs have made ground elsewhere world and Bloomberg predicted we will catch up. Perhaps the humiliation of having fewer EVs than New Zealand will be the push we need. Magnis’ managing director Marc Vogts bought $136,875.
Only last month the company presented at the Benchmark Minerals Intelligence world tour where it expressed confidence at its technology and therefore its potential.
Two directors sold share packages above $100,000 last week. It’s easy to suggest tax time, but this explanation does not hold up in either case.
The boss of investment group CVC (ASX: CVC), Alexander Beard, sold all his shares for $3.66 million, but this was part of an on-market buy back.
Turners Automotive Group (ASX: TRA) director Paul Byrnes sold NZ$1,659,992 ($1,576,262), but New Zealand does use a different tax year to us. This was why the used car seller announced its profit last month. It came in at $27.4 million.