Skin in the game: Which directors are buying shares in their companies heading into 2024?
Leading into 2024 has seen several directors of companies increase stakes in their companies, buying shares via on-market trades or participating in capital raisings.
For eagle-eyed investors, this can often be seen as a positive sign because it implies the director is not-so-quietly-confident in the company’s projects when they put some of their own cash into the kitty.
It’s by no means a guarantee the company will do well or is worth investing in but, if a director has some personal wealth tied to the company’s success, it could lead to greater accountability and decision-making that’s in the best interest of shareholders.
Finland and Slovakia-focused minerals exploration company Prospech (ASX:PRS) saw its leadership team take part in the company’s share purchase plan (SPP) announced at the start of December.
Executive director and CFO Peter Nightingale acquired 1,935,484 shares to the value of $60,000. Nightingale now has more than 12 million shares and 2 million options.
Managing director Jason Beckton, non-executive chairman Thomas Mann and executive director John Levings each ponied up for 967,742 shares to the value of $30,000.
Beckton now has more than 7 million fully paid ordinary shares and 500,000 options. The latest purchase takes Mann’s holding to almost 10 million fully paid ordinary shares and 1,325,625 options, while Levings has more than 8 million fully paid ordinary shares and 1.5 million options.
PRS raised $1.02 million from the SPP and using its 15% placement capacity, placed a further 12,967,742 shares with sophisticated investors at 3.1 cents/share to raise an additional $402k.
“The raising of $1,422,000 is a very strong result and speaks to shareholders’ excitement about the rare earth assay results being achieved by the company in its sampling program at the Korsnäs project in Finland,” Beckton says.
“The funding will enable the company to continue with the sampling program in 2024 and also undertake new confirmatory drilling to validate geological interpretations and procure fresh material for metallurgical and mineralogical studies.”
After receiving a cash off-market takeover offer last year of all Advance Zinctek (ASX:ANO) shares for $1.05/share by Ankla Pty Ltd, an entity within the Mizikovsky Group, or its preference to acquire up to 11,237,709 shares, its non-executive chairman Lev Mizikovsky has indirectly increased his holding.
Throughout December Ankla has been increasing it holding. As of January 4, 2024 Mizikovsky held 136,696 shares directly in the company and more than 33.5 million indirectly, including 5,159,812 shares under Ankla.
The manufacturer of zinc oxide powder for the personal care sector has risen 23% in the past month. ANO’s board says it is looking into the proposed offer and ANO shareholders need to take no action at this stage.
Executive director and COO Vladimir Mitnovetski of Australian wholesale distributor of computer hardware, software and related products Dicker Data (ASX:DDR) ponied up for 5000 shares directly to the value of more than $58k in late December.
Mitnovetski now holds 824,992 shares directly and 53,184 indirectly in DDR, which over the last decade has risen by an impressive 1,200%.
DDR was established in 1978 by CEO and chairman David Dicker and his ex-wife Fiona Brown and listed on the ASX in 2011.
Mitnovetski told Stockhead’s Eddy Sunarto recently that the company’s best years are still ahead and believes that it’s about to ride the next big tech boom.
“We have an amazing diversified business with a portfolio of technologies under one roof,” he says.
“We’ve done a number of exciting acquisitions last year which will continue to bring a lot of success, opening up new markets and opportunities for us.”
Supplier of monitored security and IOT solutions Intelligent Monitoring Group (ASX:IMB) has seen its non-executive chairman Peter Keenan continue to up his stake in the company throughout December.
Throughout the month Keenan made several purchases of shares in IMB ranging from $30k to more than $300k bringing his indirect interest to 141,779,671 as of December 29, 2023.
According to the ASX announcements Keenan is the ultimate controlling shareholder of the Black Crane Asia Pacific Opportunities Fund investment manager, Black Crane Investment Management Limited, which makes all investment decisions for the fund.
As of December 28, the Black Crane Asia Pacific Opportunities Fund had a 58.47% voting power in IMB.
IMB provided a positive FY24 update in December. Five months into the financial year including with four months of ADT contribution following its acquisition by IMB, the company continues to trade at or ahead of its guided EBITDA forecast of $31 million for FY24.
IMB finalised the acquisition of the ADT business in Australia and New Zealand in August.