Director Trades: Who’s been buying and selling (or only disclosing) this week?
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There’s a saying which some people agree with “better late than never” – but the ASX do not. The first directors trade over $100,000 to catch Stockhead’s eye this week was Dacian Gold’s (ASX:DCN) director Barry Patterson who bought $979,615 on market.
Yet the trade actually occurred back on June 6 – missing the ASX’s deadline for reporting directors interests. Anticipating a “please explain” from the ASX, Dacian blamed “an inadvertent administrative oversight”.
But a more positive sign for Dacian was that Patterson bought only a day after the company cut production forecasts. Since then the company has made a high-grade gold discovery, although the share price has failed to recover.
Two other gold company directors made large purchases this week. One was Sihayo Gold (ASX:SIH) director Gavin Caudle who bought $3.3 million last Tuesday. This was underwriting a significant shortfall of shares – a rights issue raised only 15 per cent, and Sihayo had been looking to place the shortfall since April.
The other was Black Cat Syndicate’s (ASX:BC8) Paul Chapman who bought $110,000. The company will have a busy next quarter with survey results and an upgrade of resources anticipated.
Three other directors bought over $100,000 in shares this week. Healthia (ASX:HLA) chairman Glen Richards, who is a career veterinarian and entrepreneur (having founded Greencross), bought nearly $300,000 on market.
Healthia is a holding company for several physiotherapy and podiatry brands including iOrthotics, DBS Medical, Extend Rehabilitation and MyFootDr.
The stock listed last September and currently sits at 78c – 22 per cent lower than its IPO price.
Director of Furniture retailer Adairs (ASX:ADH), Trent Petersen, bought $211,224 shares on market.
Earlier in June, Adairs slightly downgraded its financial year guidance but it still expects earnings around $43m. CEO Mark Ronan said, “A review of our FY19 performance shows that we have a healthy and growing business”.
Three directors sold over $100,000 in shares this week and their reasons for selling were no secret.
Alex Abrahams, director of dental stock Pacific Smiles Group (ASX:PSQ), told the company he had to “meet an unexpected near-term funding requirement” and the company signed off.
Despite selling $2.25m in shares, which were directly owned by his wife, he still owns over 20 per cent of the company.
Donaco International (ASX:DNA) directors Joey Lim Keong and Benjamin Lim Keong Hoe sold their shares to company receivers. Joey sold $7.1m while Benjamin sold $981,794.
For some weeks, shareholders were left worried about the potential impact on Donaco’s loan with Mega Bank — potentially they could have altered the agreement due to a “change of control” event.
Last week, the company told shareholders Mega Bank agreed not to do so. However, paying $US8.6m of principle not due for another few months cannot hurt.
|DCN||Dacian Gold||Barry Patterson||Buy||6 June||2,000,000||$979,615||On market||8,954,987|
|HLA||Healthia||Glen Richards||Buy||18 June||365,670||$299,907||On market||4,995,329|
|SIH||Sihayo Gold||Gavin Caudle||Buy||25 June||220,058,128||$3,300,872||Rights Issue||745,338,063|
|DNA||Donaco International||Joey Lim Keong Yew||Sell||19 June||65,887,422||$7,157,021||Receivers||136,019,375|
|PSQ||Pacific Smiles Group||Alexander Abrahams||Sell||25 June||2,000,000||$2,250,000||On market||36,327,361|
|BC8||Black Cat Syndicate||Paul Chapman||Buy||26 June||550,000||$110,000||Placement||4,216,502|
|ADH||Adairs||Trent Petersen||Buy||26 June||150,000||$211,224||On market||19,560,922|
|DNA||Donaco International||Benjamin Lim Keong Hoe||Sell||19 June||8,925,397||$981,794||Receivers||98,385,803|