Directors buy in cheap
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.