Quick one Director buys

There seems to be some confusion on the boards re’ the recent director buy.

Any director who bought shares in his company then re-sold them within a few days taking a profit would be Hung, Drawn and Quarted by the FSA. Not forgetting that he/she would then be open to dismissal.

This has not happened here. The director buy at GKP is controlled by a trust which means that it is a long-term hold.



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  1. Randalf says:

    There was a story doing the rounds about an african dictator whose country had just received £24m in aid money from the uk. The next week the dictator put an order in with boeing for a £24m plane. When asked about it he said it was a different £24m.

    The question I have is that the director bought 2m shares and if he sells them for an immediate profit then the FSA will be all over him. What if he wants to sell some of his other 12m shares? presumably these have been held for some time.

    Would he as a director be. Locked in until retirement or t/o?

    • randalf says:

      Sorry for asking an obvious question but I got burnt on a company that issued a RNS stating that they had a contract and expected to see revenues in 2009 – cue directors buying, a month later another RNS followed saying that they were in discussions regards a further contract. SP jumps up astronomically directors sell percentage of shares.

      Then they announce layoffs stating that the first and second contracts referred to in the RNS were actually one and the same contract and that it had never been signed. Board resigns and general manager is promoted.

      not surprisingly the few worthwhile assets are then given away to one of the chairmans other companies in return for a short term loan.

      saw a 10 grand investment turn into £35 (that I haven’t seen yet) so I tend to look at directors dealings with a degree of scepticism.

      • Brokerman says:

        Was that a telecoms company run by Sir Terry?

        • randalf says:

          You would be correct.

          and the FSA just aren’t interested

          • Brokerman says:

            I remember that company. That will not happen here. GKP are a bankers dream.


          • randalf says:

            FWIW I think your right.

            The thing about share dealing is that you accept it is riskier than a building society, that you will have losses as well as gains and that you will learn from your mistakes. Which I think I have.

            But when false contract RNS’s are issued, combined with director buys and then conveniently timed sells, all I think I’ve learnt from that is there are some people who are very cute who really shouldn’t be allowed to be directors….oh and don’t invest in welsh telecoms companies.

            So GKP passes that test 🙂

  2. Brokerman says:

    No a director is not locked in (depending on what options the stock was bought with.) However common sense dictates that any director buying stock would never get away with selling it on 72 hours later.
    They would be immediately placed on “Gardening Leave.”


  3. bededrill says:

    hi dan i listened to todd’s speach , talk is now of £10 plus for this share! , any comment ? cheers

  4. G says:

    Hi BMD , great work as always –

    Are you able to post what you said you could not post until post presentation …?