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Isn’t two months a long time in these markets!!
I was trying to find this post about the Easyjet (EZJ, 359p) Chairman Colin Chandlers track record in buying shares, and thought I’d written it only last month.
Now we see Andrew Harrison, the CEO, last week buying 72,000 shares at 345p, putting £250k to work. He has increased his position by more than 1/3rd so far this year, having put in another £250k in January at 424p per share.
The stock fell ( collapsed?) last week after easyjet disclosed that it would suffer from jet fuel price rises. No kidding !! What do you pay these equity analysts to do? Any conversation with the company would have revealed how far forward they were hedged, and jet fuel prices are quoted daily.
I stick to my view in January that these guys are worth following.
‘EasyJet slides as planes fly with empty seats’
Easyjet shares have recently taken a nosedive, prompting four directors to increase their holdings by a significant amount (Michels- Non exec, Browett- Non exec, Chandler- Chairman, and Harrison- CEO).
It is the Chairman, Sir Colin Chandler, who has the best track record. He has bought stock three times in the last five years. Within 10-12 months of his purchase, on each occasion, the share price has appreciated by between 70% to 110%.
February 2003- paid 205p. easyjet shares traded at 370p 10 months later.
August 2004- paid 140p. easyjet shares traded at 300p 12 months later.
February 2006- paid 378p. easyjet shares traded at 650p 10 months later.
January 2008- paid 424p.
OK, so Chandler never banked his profits. But from the evidence above he clearly recognises a buying opportunity. An example I’m happy to follow.
