Di­rec­tors buy in cheap

Finweek English Edition - - Companies & Market -

THREE DI­REC­TORS of Pre­to­ria-based fi­nan­cial ser­vices firm StratCorp – in­clud­ing CEO David Har­ing­ton – scooped up more than 4,5m shares in “off-mar­ket” trans­ac­tions priced at a mas­sive dis­count to the rul­ing share price. On 2 Au­gust the di­rec­tors paid be­tween 3,5c and 3,975c/share for their re­spec­tive parcels of 1,5m shares when the price for StratCorp shares on the AltX was 20c/share.

The price for the di­rec­tors’ buy­ing spree was even well be­low the 12-month low for StratCorp shares of 12c – rais­ing ques­tions about just how des­per­ate the sell­ers could be. While the value of the trans­ac­tion is petty cash, the num­ber of shares bought is equiv­a­lent to 2,5% of StratCorp’s is­sued shares. Per­haps it would have made more sense for StratCorp – con­sid­er­ing the lot of its long-suf­fer­ing share­hold­ers – to have rather bought back those shares?

In­ter­est­ingly, two of the di­rec­tors in­volved in the re­cent bout of buy­ing – Har­ing­ton and Ian Wright – also cashed in early last year. Har­ing­ton sold 1,4m shares at 72c and 6m shares at 48c, while Wright sold 521 000 at 48c/ share.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.