Trading hiatus ahead of results
The scorecard registered $1.6 million to $1.9 million in favour of directors doing some selling, compared with $2.8 million to $13 million last week.
There were few industrial counters on the buying side, with a host of resources companies making up the numbers.
One exception was Ecosave, a tightly held outfit that went public early this year and whose mission in life is to save businesses money by reducing energy consumption.
The group floated on the basis of estimated tax-paid earnings of $3 million for the year just finished.
The $1 shares gave stags a lovely little profit when they listed at $1.40 and such was the excitement they hit $1.80 in March.
But, come July, chief Marcelo Rouco announced that earnings, rather than $3 million, would weigh in at between $1.6 million and $2 million.
Those tidings had the effect of slicing the scrip from $1.61 to $1.24, but it's since bounced as high as $1.61.
Mr Rouco said that "none of the major opportunities which made up our initial public offering forecast have been lost" and there had been delays in closing sales, and resources had been allocated to a high number of contracting bids in the latter part of the 2013 financial year.
"We chose to enter those bids knowing it could draw resources away from fulfilment of existing contracts and therefore push some revenues into financial year 2014," he said, adding that the strategy had paid off with contract wins.
Three directors bought shares this week.
Elsewhere, there was multi-director buying in algae to biofuels group Algae.Tec, in mining services concern Subzero Group and Santana Minerals.
Frequently Asked Questions about this Article…
The article says directors' trades fell substantially as the results season was about to start. The scorecard showed $1.6 million to $1.9 million in favour of directors doing some selling, compared with $2.8 million to $13 million the prior week.
Most of the buying came from resources companies, with multi‑director buying reported in algae‑to‑biofuels group Algae.Tec and mining firms Subzero Group and Santana Minerals. The article notes fewer industrial counters were on the buying side.
Ecosave floated earlier in the year on the basis of estimated tax‑paid earnings of $3 million for the year just finished. In July, CEO Marcelo Rouco said earnings would instead be between $1.6 million and $2 million, not the $3 million originally forecast.
Ecosave listed at $1.40 and climbed as high as $1.80 in March. After the July earnings revision the stock fell from $1.61 to $1.24, but it later bounced back as high as $1.61.
CEO Marcelo Rouco attributed the shortfall to delays in closing sales and resources being allocated to a high number of contracting bids late in the 2013 financial year. He said the group deliberately entered those bids knowing it might push some revenues into the 2014 financial year, and that the strategy had led to contract wins.
Yes. The article says three directors bought shares that week, and it highlights multi‑director buying in Algae.Tec, Subzero Group and Santana Minerals.
The article highlights that director trading activity can shift ahead of results season, with selling dominating in the week covered and selective buying in resource names. Everyday investors may want to track director trades, earnings revisions and sector‑specific activity as companies report results.
Yes. The article describes Ecosave as a tightly held outfit that floated earlier in the year. Its mission is to save businesses money by reducing energy consumption.
Call 1300 880 160
Start a chat
Schedule a call
