Director Trades: Who’s been buying and selling (or only disclosing) this week?

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.
Health & retail directors buy too
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”.
A sell is a sell even if its your spouse or to receivers
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.
Code | Company | Director | Change | Date | Volume | $ | What | Total holdings |
---|---|---|---|---|---|---|---|---|
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 |
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