What happened while you were away...
Non-executive bulks up fam m ily trust by R30m
THE HOLIDAY season was a fairly brisk period in terms of directors’ dealings – perhaps suggesting some clever fellows were using the festive lull as a time to quietly shuffle scrip when most market participants were sunning their buns in Plett. The standout deal – at least for me – was Chris Otto, a non-executive at inventive investment company PSG, cashing in almost R30m of PSG shares via the Chris Otto Familie Trust.
Currently, it’s a very interesting time for PSG, with its investment in Capitec still holding up well and its specialist investment companies – such as Zeder and Paladin – holding quite a few irons in the fire. While it’s a big transaction, Otto – widely regarded as the foil for PSG’s adventurous founder Jannie Mouton, may well be just being prudent in taking a little profit off the table. Indeed, Otto sold the shares at prices close to PSG’s all-time high of 4000c. Now that’s something open to interpretation.
Another interesting bout of selling was by Dave Alexander, the CEO of electronic security specialists,
Amecor. The company has started to look operationally adept and its share price has recently started reflecting the market’s recognition of its dividend attractions. Alexander sold 2,25m shares at 145c to cash in a nifty R3,26m.
While Alexander’s decision to sell off a portion of his shareholding might raise questions about Amecor’s medium term value, its directors at Argent Industrial seemed determined to send a message to the market that the company’s shares are value laden. Argent directors bought en masse (off market) – including almost R800 000 spent by CEO Treve Hendry.
Penny stock punters should perhaps take note of a flurry of deals in low-cost housing group RBA Holdings. Designated adviser Marius Meyer certainly had no qualms throwing some of his (well-earned) Christmas bonus at RBA, snapping up around 1,4m shares at prices between 16c and 17c from 14 to 22 December. If you scan RBA’s Sens notices for the past few months you’ll see it wasn’t the first time RBA’s company’s designated adviser has taken a tilt at the shares. Meyer, who has been around the small cap block a few times, clearly sees value in a company with its most recent numbers not really making pretty reading.
Other – perhaps significant – share buying included Italtile, where chairman and founder Giovanni Ravazzotti splurged R5,6m on 2,3m Italtile shares at 400c each via 60% controlled vehicle Rallen; and poultry group Country Bird Holdings (where founder Kevin James snapped up 194 000 shares at 300c each).