PSG’s vote of confidence
Quiet week sees R7m net buy in Top Fix
IN A RELATIVELY QUIET WEEK, mining company BHP Billiton’s Ian Wood was the only trader of note when he sold A$1m (around R7m) worth of shares soon after exercising his options on them. Wood is vice-president for sustainable development at BHP Billiton. The 25 000 shares Wood sold were awarded to him at no cost between 2001 and 2007 under the company’s long- term share incentive scheme.
His average selling price of A$39,90 (R268,69c/share at the prevailing exchange rate at the time of writing but the highest it reached in Johannesburg during the week was R183,16) was markedly down from the
Massmart is one of few companies that have defied the
bloodbath on the markets.
A$50/share in Sydney mid-May. In South Africa BHP Billiton reached a high of R323,50/share at the same time.
At the time of writing BHP Billiton was trading at half its peak price at R162,95/share. Such has been the extent of value destruction in the aftermath of the sub-prime mortgage crisis.
Massmart chief financial officer Guy Hayward was another major trader after spending R4,7m to exercise his options. The nearly 50 000 (9425c each) shares Hayward acquired, upped his interest in the company to around 840 000 shares, mainly achieved through Massmart’s long-term share incentive scheme since 2000, when he joined it as group financial executive. The value of Hayward’s stock can be described as a fitting reward for his long and loyal service to the retailer.
At around 8000c/share mark, Massmart is one of few companies that have defied the bloodbath on the markets and still boast a positive return on the year. The share is up 18% since January while the general retail index is down 20% and all-share index is down 30%.
Investors should take note of PSG Capital buying more than 12m Top Fix Holdings shares last week. After a 150c/share debut on the AltX in December 2006, the construction services provider went all the way up to a high of 325c/share 10 months later before embarking on a downward spiral that resembled a straight line to its current 38c/share.
Loyalty pays out.