PSG’s vote of con­fi­dence

Quiet week sees R7m net buy in Top Fix

Finweek English Edition - - Companies & Markets -

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.

Guy Hayward

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