I have had a busy few weeks, with the launch of the Woodford Campaign, the Sirius webinar and a massive 49 page response to the FCA’s Call for Input on the Consumer Investments Market, which I co-authored. So today it was time to look at my own investments and whilst perusing the early morning RNS’s and press coverage I saw the share sales by directors of Impax.
https://citywire.co.uk/wealth-manager/news/impax-chair-banks-11m-on-rocketing-share-price/a1440390 explained that the outgoing Chairman Keith Falconer sold £10.6m of Impax shares.
I am a great believer in skin in the game and this was a huge red flag for me.
I tend to buy shares in companies who present at ShareSoc events. This was where I first heard of Impax, who I have also seen at Mello and Equity Development, the latter writing paid for but excellent reports explaining Impax’s progress. As a result of some purchases in 2017/18 and subsequent great share price performance, Impax now makes up about 25% of my “growth” portfolio of shares. Having lectured Sirius ex shareholders on the wisdom of diversification, I am acutely conscious of not following my own guidance. So it is very important to keep a close eye on what is happening.
Chairman Keith Falconer is retiring. I feel that Directors should not sell until two years after they leave, so that any worms/gems they leave behind can emerge and influence the share price up or down before they sell. Anyway, no such rules applies at Impax and Keith has decided, not unreasonably, to diversify some of his wealth and sell 20% of his holding. He still retains about £37million. So, I am relaxed about his sale on this occasion. Were he to sell more, then my view might change!
Keith’s last sale was in Feb 2018 , when he sold 3.8m shares at £1.65 for a total of £6.35m. A sensible diversification, but in retrospect an awful decision as the share price is now £7.22!
Other worrying things are the sales by the CFO Charlie Ridge and largest shareholder BNP.
This week Charlie sold 66,666 at £7.10 for £473,000 and this was on top of selling 450,000 in July at £3.65 for £1.64million. (note to Charlie, not your greatest financial decision!) Does he know something I don’t? It is always a big red flag when the CFO sells.
Largest shareholder and long…
