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I’m a little surpised at the extent of Connaughts (CNT, 11p) fall from grace, but not by its direction.
Founder and CEO Mark Tincknell sold a third of his holding at close to four pounds (375p) not so long ago.
He, or was it the brokers who placed the stock, claimed it was ‘to satisfy institutional demand’.
Just serves as a reminder to look at what directors are doing with their own money.
Close ‘STRONG negative view on Connaught with a 96% absolute and relative (to FTSE 250) return.
See our note of April 30th 2008 here
See also todays FT report of an FSA Inquiry into Connaught. Maybe they should start with a discussion with Tincknell.
( https://followthedirectors.co.uk/2008/04/30/connaught-directors-selling-vs-eaga-directors-buying/)
John Jackson, Non Exec Director of The Restaurant Group (RTN, 157p), and CEO of Jamie Oliver Holdings Limited, prompted us to reiterate our positive signal on The Restaurant Group shares when he tripled his holding on October 20th by buying 200,000 shares at 104p (‘The Restaurant Group Non Exec trebles holding‘).
In March 2008 five directors invested gbp 400k, increasing their positions by between 15 and 50%. This prompted us to view the signal from director dealings as Positive, and of high value (‘STRONG’). See our March 14th comment: ‘Consumer stocks at risk? Not TRG according to directors’.
Jackson this week (May 8th) sold ALL his holding in The Restaurant Group, 300,000 shares, at 161.84p.
This share sale causes us to take profits on The Restaurant Group.
Share performance since March 14th 2008: Shares are up 14% absolute, or up 42% relative to the index (FTSE 250).
Share performance since October 22nd 2008: Shares are up 34% absolute or 10% relative.
View on The Restaurant Group: Negative
Strength of Signal: Medium
For all comments on The Restaurant Group click here.
John Wood Group plc (WG., 236p) have outperformed the market since directors bought shares in October 2008 (up 32% absolute, up 5% relative) and December 2008 (up 27% absolute, up 10% relative) (for the followthedirectors comments on October 28th (179p) and December 10th (185p) click here).
Last week we saw Mark Papworth, an Executive Director of John Wood Group, exercise options over 50,000 shares at 3.3p, and sell them all at 247p. (April 24th, source London Stock Exchange).
We at followthedirectors view this negatively. A sale of sufficient shares to pay for the tax liability on the options exercise would be seen as neutral. A`sale of a greater number of shares is treated as a net sale, in this case of around 25,000 to 30,000 shares. This follows 16 individual cases of share purchases since October 2008 by directors of John Wood Group.
View on John Wood Group plc: Neutral- close positive view of October 28th and December 10th 2008.
Strength of Signal: Weak