Turnbull back in the market
Turnbull - the chairman of the developer of bio-therapeutic products for cancer, including one for ovarian cancer patients in remission - on Wednesday bought 250,000 shares that followed her acquisition the previous week of 200,000 shares - all of them around the 9¢ mark.
Mrs Turnbull was appointed chairman in 2010 when the scrip was fetching 14¢. In April 2011, the shares hit 42¢ but since those glory days they have more or less been on the slippery slide to current levels; the group is valued by the market at $97 million.
The company is cashed-up with about $28 million in cash or near-cash and is going to shareholders for even more with a share purchase plan and an options issue. Shareholders soon will consider allowing directors to subscribe for up to $2 million of any shortfall from the share purchase plan.
Elsewhere, Wayne Sidwell returned to the market and bought a useful line of shares in his listed printing business, Wellcom Group.
Sidwell, the executive chairman, late in February bought 100,000 shares at $2.62 apiece, following the unveiling of a 32 per cent earnings decline.
He ha's just had another bite at the cherry, this time paying $2.40 a share or some 12 times forecast current year earnings.
On the selling side, a couple of Henderson Group executive directors sold shares following the exercise of freebie options. Chief executive Andrew Formica and numbers woman who will retire next year Shirley Garrood said they had sold purely to fund British tax and national insurance costs.
There was multi-director buying in Malabar Coal, Sundance Energy and TechNiche. Robin Parish again bought shares in Troy Resources.
Frequently Asked Questions about this Article…
Lucy Turnbull recently topped up her stake in Prima BioMed, buying 250,000 shares on Wednesday after purchasing 200,000 shares the previous week — all at around the 9¢ mark. She is the company's chairman and has continued to buy despite the shares trading well below earlier highs.
Turnbull’s continued purchases and her description of Prima BioMed as one of Australia’s most innovative biotech companies can be read as a show of confidence. The article also notes the company has a history of higher prices (14¢ when she became chair in 2010 and a 42¢ peak in April 2011) and is currently valued at about $97 million.
Prima BioMed is reported to have about $28 million in cash or near-cash. The company is offering a share purchase plan and an options issue, and shareholders will soon consider allowing directors to subscribe for up to $2 million of any shortfall from the share purchase plan.
Wayne Sidwell, executive chairman of Wellcom Group, returned to the market and bought shares in the listed printing business. He bought 100,000 shares at $2.62 late in February after a 32% earnings decline, and later bought more at $2.40 a share (about 12 times forecast current year earnings).
Two Henderson Group executive directors — chief executive Andrew Formica and Shirley Garrood, who will retire next year — sold shares after exercising free options. They said the sales were purely to fund British tax and national insurance costs.
The article reports multi-director buying in Malabar Coal, Sundance Energy and TechNiche. It also notes that Robin Parish again bought shares in Troy Resources.
When Turnbull was appointed chairman in 2010 the Prima BioMed scrip was trading around 14¢. It peaked at about 42¢ in April 2011 and has since declined to the levels around 9¢ where her recent purchases occurred.
Director buying can indicate confidence in a company and director selling can sometimes be for personal reasons such as funding tax obligations, as disclosed by Henderson Group executives. Investors should consider these disclosures alongside company fundamentals noted in the article — for example Prima BioMed’s $28 million cash position, upcoming share purchase plan and overall market valuation — before drawing conclusions.
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