Media barons dominate trade, Murdoch sells $10m in shares

MEDIA figures dominated directors' trades, with Rupert Murdoch and interests associated with Kerry Stokes accounting for more than half of the $29 million turnover.

By InvestSMART · 24 Nov 2012

By InvestSMART ·
24 Nov 2012

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MEDIA figures dominated directors' trades, with Rupert Murdoch and interests associated with Kerry Stokes accounting for more than half of the $29 million turnover.

Murdoch sold nearly $10 million of News non-voting shares, while Stokes' interests through Seven Media Group, topped up their stake in Seven West Media.

Seven West scrip has been weak for most of this year and not that long ago hit $1.07, compared with a year's $4.10 high.

The Stokes' buying was done at about $1.49 and yesterday the shares closed at $1.57.

Elsewhere, there was more buying of Boral shares.

Michael Kane, Eileen Doyle and Richard Longes bought in recent days, which means that six of the eight-member board have bought shares since the annual meeting.

Kane took the managing director's reins last month; he opened his account with the purchase of 10,000 shares.

Paul Rayner did the best of them, buying at $3.57, while the others paid up to $3.75. The scrip closed yesterday at $3.95, so they're nicely ahead of the game.

Among others buying shares after getting appointed to a board was Howard Mowlem who last month became a Billabong director.

A former numbers man at Dairy Farm International, Mowlem paid about 88? and now they're 94?.

Recently John Borshoff sold $5.6 million of Paladin Energy scrip; another director, Donald Shumka, bought some shares. Chairman Rick Crabb, also a recent buyer, said at the annual meeting this week that "from some quarters" there had been some unfair commentary about Borshoff's sale.

"I note that this was the first time since inception of the company in 1994 that Mr Borshoff has parted with some of his shares, [it] was done for personal reasons and I am sure this does not at all change the confidence he has for the future of Paladin," he said.

Belinda Hutchinson, who heads the QBE Insurance board, pounced on some shares at $10.86; one month ago the scrip was $14.04.

Elsewhere, Flight Centre heavy Graham Turner sold shares as did Wotif.com managing director Robbie Cooke.

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Frequently Asked Questions about this Article…

Which director trades dominated recent market activity and why should everyday investors notice them?

Media figures dominated recent directors' trades: Rupert Murdoch and interests linked to Kerry Stokes accounted for more than half of about $29 million in turnover. Large director trades can move market attention and provide clues about major shareholders' views of their companies.

How much did Rupert Murdoch sell and what type of News shares were involved?

Rupert Murdoch sold nearly $10 million worth of News non‑voting shares, according to the report — a sizable director sale that featured prominently in the period's trading activity.

What did Kerry Stokes' interests do with Seven West Media shares and at what price were they buying?

Interests associated with Kerry Stokes, via Seven Media Group, topped up their stake in Seven West Media. The buying was done at roughly $1.49 a share, and the stock had closed at $1.57 the following day; the scrip had been weak earlier in the year (recent low around $1.07 versus a year's high of $4.10).

Why did Boral directors buy shares and what were the purchase prices?

Six of Boral's eight directors bought shares since the annual meeting, signaling director support after board changes. New managing director Michael Kane opened his account with 10,000 shares. Paul Rayner bought at about $3.57, other directors paid up to $3.75, and the scrip later closed at $3.95 — putting those buyers ahead in the short term.

What happened with Paladin Energy director trading and how did the company explain it?

John Borshoff sold about $5.6 million of Paladin Energy scrip, while another director, Donald Shumka, bought some shares. Chairman Rick Crabb said Borshoff's sale was for personal reasons, the first time he had parted with shares since the company began in 1994, and that it should not be taken as changing his confidence in Paladin's future.

Did any QBE Insurance directors trade shares and what were the prices?

Yes — QBE Insurance chair Belinda Hutchinson bought shares at $10.86. For context, the scrip had been around $14.04 about a month earlier.

Which travel sector executives sold shares recently, according to the article?

Flight Centre heavyweight Graham Turner sold shares, and Wotif.com managing director Robbie Cooke also sold shares during the reported period.

How should everyday investors interpret director buying and selling activity?

Director buying can signal confidence or alignment with company strategy — for example, several Boral directors bought after the annual meeting and a newly appointed director bought Billabong stock after joining the board. But director sales aren't always negative: Paladin's chairman said Borshoff's sale was for personal reasons and didn't reduce his confidence. Everyday investors should view director trades in context (size, timing, company news) rather than as standalone buy/sell signals.