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Dana Petroleum – profits ‘surge’, shares up 47%. Thanks Tom.
April 5, 2009 in Directors buying, FTSE 250 company, STRONG signal | Tags: Dana Petroleum, DNX, Tom Cross | Leave a comment
Tom Cross, CEO of Dana Petroleum (DNX 1223p) has a great track record- again!
Back in June last year he and a colleague, David MacFarlane exercised options and sold significant amounts of shares in Dana Petroleum (DNX, 1223p) at close to 19 pounds a share.
In the market turmoil of October Cross bought shares back at 10 pounds a share CHEAPER.
Since then the market has bounced, as has the oil price, and the shares are up 50%.
I’m sure there’s more to go, and longer term you might want to follow Cross’s lead, not mine.
But having seen great results (‘surge in annual net profit‘) for the year to December 2008 (note to self: 10 months were ‘in the bag’ when Cross and Dayer bought shares), I’m happy to take Dana off the ‘STRONG signal, ‘Directors buying’, ‘Positive’ list, with a 47% absolute return and a 34% relative outperformance against the market (FTSE 250 index).
Note of October 19th ‘CEO invests at 853p having sold at 1886p in June’:
Only last week, October 15th, followthedirectors wrote ‘Technical director thinks DANA Petroleum undervalued‘.
One day later. the CEO Tom Cross, and one of the non executive directors Philip Dayer, also bought shares in Dana Petroleum (DNX, 831p).
Non exec Philip Dayer bought 5787 shares at 864p, taking his holding to 9387 shares. CEO Cross bought 43490 shares at 853p, taking his holding to 1,044,890 shares.
So this isn’t a significant move on Cross’s part. But when you look at the $$ amount invested (GBP 370k), and the coincidental purchase of shares by three other directors in the week (Brian Johnston non exec, and Stuart Paton Technical and Commercial Director, as well as Dayer above), then Dana Petroleum starts to look interesting.
View on Dana: Neutral
For all Dana Petroleum comments see here.
Allscripts (MDRX) comes off ‘positive’ list with 96% return.
April 5, 2009 in Directors buying, STRONG signal | Tags: Allscripts, Glen Tullman, MDRX, Mike Lawrie, Misys, MSY | Leave a comment
It wasn’t that long ago (end of October), when Allscripts were trading at around $5, that we spotted an announcement by Misys (MSY, 124p) that their CEO, Mike Lawrie, was buying shares in Allscripts (MDRX, $10.84), the medical software group in which Misys own a majority position. Lawrie was followed shortly afterwards in his purchases by Glen Tullman, CEO of Allscripts.
We thought this purchase in shares of a subsidiary unusual, and suspected Lawrie of believing there to be better opportunities in Allscripts than in Misys.
The WSJ’s Inside Track picked up on our story on November 5th.
Since our note of October 30th (link here), Allscripts are up 96% in absolute terms, and up 120% vs the Dow Index.
Misys shares in dollar terms are pretty much unchanged over the period.
So Lawrie was right. Very right.
Why take Allscripts (MDRX) off the positive list? Because we think the share price now matches the markets expectations in the medium term: Q3 profits were out last week, and despite ‘better than expected results’ the stock was down 28c on the day (MSN Money).
Extract from our note of October 30th 2008:
‘Mike Lawrie, CEO of Misys plc (MSY, 118p), and Chairman of Allscripts after Misys completed a purchase of the majority of the shares in the company, has bought 70,000 shares in Allscripts at $5.0921 (27th October- source London Stock Exchange– type MSY into Code box).
Lawrie already has a $1m shareholding in Misys (excluding his share options and performance plan shares). Does he now think Allscripts is the cheap (er) way to invest in the group?’
View on Allscripts: Neutral
For all our earlier comments on Allscripts click here.
