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Directors Trades: Last week’s biggest believer put $5.6m into a prawn farming stock
Director Trades
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The top directors trade last week was a $5.6m cash injection into prawn farmer Seafarms Group (ASX:SFG).
The buyer was chairman Ian Traher, with his buy accounting for nearly half of a capital raising.
While he had committed to pay in March, he had to wait for shareholders to give their blessing last week because he already owned over 24 per cent of the company.
Seafarms is building a prawn farm off the coast of Queensland, which when complete will produce 150,000 tonnes annually. It is targeting export markets which post-COVID have been tipped to be a big opportunity for companies like Seafarms.
At its meeting last week the company told shareholders it believed Asian consumers would turn away from wet markets and towards food that remained safe and clean throughout the supply chain.
“We estimate that PSD [Project Sea Dragon] will be coming into production just as the world economy rises from the pandemic,” Seafarms said.
The company also believes local demand for seafood as a protein source will be an opportunity too.
| Code | Company | Director | Change | Date | Volume | $ | What |
|---|---|---|---|---|---|---|---|
| JAY | Jayride Group | Rodney Cuthbert | Buy | 18 June | 500,000 | $100,000 | Off market |
| SVM | Sovereign Metals | Ian Middlemas | Buy | 22 June | 500,000 | $100,000 | On market |
| INR | ioneer | John Hofmeister | Buy | 23 June | 950,000 | $116,090 | On market |
| LTR | Liontown Resources | Timothy Goyder | Buy | 19 June | 3,000,000 | $315,000 | On market |
| TIG | Tigers Realm Coal | Bruce Gray | Buy | 24 June | 1,370,404,436 | $13,704,044.36 | Rights Issue |
| SRY | Story-I | Michael Chan | Buy | 25 June | 15,150,000 | $181,800 | Off market |
| BSA | BSA | David Prescott | Buy | 26 June | 3,971,903 | $1,063,278 | On market |
| AV1 | Adveritas | Matthew Rutty | Buy | 26 June | 2,727,273 | $150,000 | Placement |
| DCG | Decmil Group | Dickie Dique | Buy | 25 June | 3,789,129 | $205,306 | On market |
| RNO | Rhinomed | Ron Dewhurst | Buy | 26 June | 4,250,000 | $327,250 | Rights Issue |
| NVX | Novonix | Robert Natter | Buy | 25 June | 750,000 | $217,500 | Rights Issue |
| NOX | Noxopharm | Frederick Bart | Buy | 23 June | 2,538,462 | $330,000 | Off market |
| WKT | Walkabout Resources | Trevor Benson | Sell | 29 June | 836,567 | $130,421 | On market |
| VYS | Vysarn | James Clement | Buy | 30 June | 8,700,177 | $391,507 | Rights Issue |
| BNK | BNK Banking | John Kolenda | Sell | 25 June | 744,526 | $294,088 | Off market |
| SSM | Stream Group | Christian Bernecker | Buy | 29 June | 19,175,944 | $113,516 | Dividend Reinvestment Plan |
| SSM | Stream Group | Lawrence Case | Buy | 29 June | 43,791,384 | $109,478 | Dividend Reinvestment Plan |
| SFG | Seafarms Group | Ian Traher | Buy | 30 June | 187,979,999 | $5,639,400 | Placement |
| ENE | Enevis | Greg Jinks | Buy | 22 June | 10,156,858 | $457,059 | Rights Issue |
| BSA | BSA | David Prescott | Buy | 30 June | 626,000 | $174,028 | On market |
| PET | Phoslock | Zhigang Zhang | Sell | 1 July | 1,500,000 | $435,000 | On market |
| IVT | Inventis | Peter Bobbin | Buy | 1 July | 239,600,000 | $718,800 | Rights Issue |
| RAP | Resapp | Tony Keating | Sell | 2 July | 10,000,000 | $1,500,000 | Off market |
Small cap directors buying
One stock that has had a tough year is industrial play Decmil (ASX:DCG).
In March it reported a half-yearly loss of $75m because of two particularly troublesome clients that weren’t paying.
Executive director Dickie Dique, who also became CEO in May, took another leap of faith by purchasing $205,306 on market last week.
Another company that’s had a tough year and saw a director tip more cash in is airport transfer booking service Jayride (ASX:JAY). Rodney Cuthbert bought $100,000 off market.
The company’s bookings plunged 95 per cent in April 2020 compared with last year but it told shareholders its recovery in May and June had exceeded expectations. It says demand for “health-secure door-to-door travel” would rise as restrictions gradually eased.
Timothy Goyder bought another $300,000 of shares in Liontown Resources (ASX:LTR). Share-price wise Liontown has had a quieter 2020 than in 2019, but the company still busy from an operational perspective.
The company is looking to do work at its Moora nickel project — located in the same geological terrain as Chalice Gold Mines’ (ASX:CHN) Julimar discovery, 95km to the south.
Liontown is also hoping to complete a pre-feasibility study for its Kathleen Valley lithium project, which sent it flying last year.
Small cap directors selling
Meanwhile a handful of directors were selling to pay tax bills.
Sellers who attributed their trades to potential tax liabilities included Walkabout Resources’ (ASX:WKT) Trevor Benson, who sold over $130,000 and Resapp’s (ASX:RAP) Tony Keating, who sold $1.5m.
Zhigang Zhang, deputy chairman of water cleaning tech stock Phoslock (ASX:PET), parted with $435,000 worth of shares. The company said it was for “personal reasons” but noted he had sold off market to an unnamed family member.
