Stefanutti takes stock (so to speak)
THE TRANSACTION last week that might have generated some debate was the enthusiastic dealings by a crowd of executives at construction company Stefanutti Stocks – one of the few infrastructure counters that still appears to hold reinforced prospects. Stefanutti – unlike so many of its peers that listed in the midnoughties listings rush – still appears to be firmly on the front foot and earlier last month even made a strategic acquisition.
But sentiment for the broader infrastructure sector remains brittle and the market still tends to over react to any little operational setback or slightly negative development. No doubt the market would have taken heart that all and sundry – in terms of senior executives at Stefanutti – climbed in to buy shares in terms of the “Stefanutti Stocks Holdings Ltd Forfeitable Share Plan”. But it was by some cruel coincidence at roughly the same time a sizeable sell order by chairman Biagino Stefanutti got hit on the open market.
While perhaps the chairman probably didn’t send out the most positive message in letting go shares worth R17,5m, we must take cognisance of the fact that Stefanutti still remains a most significant shareholder in the business. And too often we do begrudge executives who take a bit of profit now and again.
If we are to reinforce the bright side of this transaction, Finweek does suspect the buyer of such a large parcel of shares must have been an institutional investor (which is a good thing, isn’t it?). And readers may also notice a director of construction group Wilson Bayly Holmes – Ovcon sold R1,1m worth of shares.