Director Trades: Who was buying and who was selling last week
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The sellers were out in force last week, but the key players were cashing in after a truly meteoric rise.
We’re talking about Phoslock (ASX:PET), a waterways cleaning company that popped in 2017 and really popped after announcing a maiden profit in early 2018.
Then from May the stock has rocketed again, rising 82 per cent after it won a cleaning contract for a lake two-thirds the size of Sydney Harbour and after China’s water ministry recognised its technology.
Phoslock is a material that attacks phosphate. When phosphate is present in water it is easier for quality and odour issues to be present, including algae.
Three directors, including boss Robert Schuitema, sold up to take advantage of the epic share price, which closed at 75c on Friday.
Schuitema exercised some options, bought on market, and sold and ended up being up $675,559 after the exercise.
It is common knowledge that air quality is a significant problem in China, but water quality is just as concerning, especially in regional areas.
Surveys conducted last year, by Chinese environmental officials, found 29 per cent of water samples were unsuitable for drinking and fishing and phosphorus was one of the major pollutants.
Four of TerraCom Resources’ (ASX:TER) seven directors bought into a cap raise last week, and three of those were noteworthy (ie, above $100,000).
It wasn’t clear which company non-executive director Paul Anderson was buying for but he ‘made’ the biggest buy in, on behalf of one of the two other investment vehicles he runs: Bonython Coal No 1 or the Singleton No. 5 Investment Trust.
Zelda (ASX:ZLD) director Mara Gordon sold off stock “to meet personal commitments” after the board promised not to sell stock unless to strategic investors in November last year.
Luckily, a couple of strategic investors were found: serial pot investor Merchant Funds and an unnamed “entity” which farmed the remaining shares out to individual investors.
Gordon needed the cash to settle some convertible notes.