SOME new corporate faces appeared on the buying side of directors' trades this week, while mining stocks dominated the disposals list.
The scorecard registered $31 million to $51 million in favour of sellers and once again a couple of directors took a big hand in proceedings billionaire Hans Mende at Whitehaven Coal and concrete vendor Raymond Barro at Adelaide Brighton.
Hills Holdings made a rare appearance thanks to chairman Jennifer Hill-Ling's large-scale buying at prices not seen for at least 15 years.
Hills whose products range from ladders and clothes lines to hospital equipment experienced a weaker second half than forecast, reported a 37 per cent earnings drop and booked a $100 million asset and goodwill write-off.
In 2007, Hills' scrip sold above $6.50 but Mrs Hill-Ling whose father was chairman and managing director for 40 years has spent more than $900,000 on the shares at about $1.20 apiece.
At $1.12 a share, the $1 billion-a-year sales group is selling at about 11 times 2011 earnings 7 times 2010 earnings with a dividend yield of about 9 per cent.
Elsewhere, two directors of employment concern Chandler Macleod, another friendless stock, picked up useful quantities.
John "Jack" Cowin, the fast-food- chain man who joined the Chandler board earlier this year, bought 2 million shares at 34? 43 per cent down on the year's high, while John Plummer also topped up his stake.
Meanwhile, Greg Hywood, Fairfax Media's managing director, opened his account with a $100,000 purchase.
He paid 84.5? a share the group is trading at about 7 times underlying earnings.
On the selling side, Hans Mende's interests disposed of $36 million worth of Whitehaven Coal stock.
AMCI International GmbH, which he co-founded in 1986, sold the shares at $6 apiece.
The Mende interests retain $412 million of shares.
Fellow directors Allan Davies and Neil Chatfield were also sellers.
Michael Donaldson and Robert Watkins, directors of gold counter Beadell Resources, collected about $400,000 each and explained they'd sold to provide funds for "book publishing expenses" and for "personal residence construction expenses", respectively.
Elsewhere, Terry Smart, the JB Hi-Fi chief, did some useful option exercising and selling.
He exercised options at $11 a share, costing nearly $1.2 million, and sold stock at $14.85, collecting $5.2 million. He retains more than $19 million of stock as well as options.
There was multiple-director buying in Probiotec, Sims Metal, Leighton and Circadian.
Frequently Asked Questions about this Article…
What was the overall trend in director trades this week — were directors net buyers or sellers?
This week the directors' trades favoured sellers: the article's scorecard registered between $31 million and $51 million in favour of sellers, with mining stocks particularly prominent among disposals.
Why did Hills Holdings' chair Jennifer Hill-Ling buy shares and what do the company metrics look like?
Jennifer Hill-Ling made a large-scale purchase at prices not seen for at least 15 years, spending more than $900,000 at about $1.20 a share. The company recently reported a 37% earnings drop and took a $100 million asset and goodwill write-off. At $1.12 a share the business was trading at roughly 11 times 2011 earnings (7 times 2010 earnings) with a dividend yield of about 9%.
What happened with Whitehaven Coal director sales and how much stock remains with Hans Mende's interests?
Hans Mende's interests disposed of about $36 million worth of Whitehaven Coal stock, sold via AMCI International GmbH at $6 apiece. After the sale, the Mende interests still retain around $412 million of Whitehaven shares.
Which directors picked up shares in Chandler Macleod and why might that be notable for investors?
Two directors of Chandler Macleod, including John 'Jack' Cowin, bought useful quantities of stock. Jack Cowin purchased 2 million shares at a price that was about 43% down on the year's high, and fellow director John Plummer also topped up his stake — a sign that some insiders saw value at lower prices.
Did any media executives buy shares and what was the Fairfax Media transaction?
Yes — Fairfax Media's managing director Greg Hywood opened his account with a roughly $100,000 purchase. He paid about 84.5 cents a share, and the group was trading at about seven times underlying earnings at the time.
What option activity and share sales occurred at JB Hi‑Fi involving Terry Smart?
Terry Smart exercised options at $11 a share, costing nearly $1.2 million, then sold shares at $14.85 and collected about $5.2 million. He still retains more than $19 million of stock as well as options.
Why did Beadell Resources directors sell shares, and how much did they raise?
Two Beadell Resources directors, Michael Donaldson and Robert Watkins, each collected about $400,000 from share sales. They said the proceeds were to fund 'book publishing expenses' and 'personal residence construction expenses', respectively.
Which companies saw multiple directors buying shares this week?
The article notes multiple-director buying in Probiotec, Sims Metal, Leighton and Circadian, indicating coordinated insider buying at those companies.
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