MIDAS SHARE TIPS: Bullish bosses spending thousands buying their OWN shares

Daily Mail​

2 days ago

Company directors should know more about their business than anyone else.
Given their privileged position, there are strict rules about when they are allowed to buy and sell shares. Directors cannot trade in the run-up to results, if their company is about to raise money or if any information is about to be released that might move the share price.
Sometimes it seems there are precious few times when directors can buy and sell shares so, when they do, investors take notice.
Using data from analytics specialist Smart Insider, Midas has unearthed significant directors' deals of recent weeks – purchases that would seem to suggest those at the top believe their shares have further to go.
Corcel
A small oil and gas company with assets in Angola and Brazil, Corcel is valued on the stock market at less than £17 million and each share is priced at 0.32p.
However, chief executive Scott Gilbert has big ideas for the business and last month spent £75,000 on 25 million shares.
Chairman Pradeep Kabra and commercial director Geraldine Geraldo echoed Gilbert's confidence, splashing out a further £30,000 apiece on shares.
The purchases come at an interesting time for Corcel. It has a chequered past and previous management made mistakes aplenty. Today, however, under Gilbert's watchful eye, Corcel seems to be on surer ground.
Hailing from Aberdeen, Gilbert has oil and gas in his blood. Both his parents spent their careers in the industry and he followed suit straight from university.
Having made money early, he set out on his own and started looking for projects in Angola, where he had lived and worked as a young man. In 2022, Gilbert acquired three assets in the Kwanza Basin, an area rich in oil.
A year later he sold a 90 per cent stake in these projects to Corcel, and last May was appointed chief executive of the group.
At the time, Corcel shares had tumbled and prospects seemed bleak. Gilbert raised cash, strengthened management and moved ahead in Angola, while acquiring options to buy into gas fields in Brazil.
Progress has not been easy.
Two of the Angolan assets are majority owned by state-backed energy group Sonangol. They were expected to move into gear quickly, but early results were disappointing and Gilbert decided to look elsewhere for projects that could deliver short-term cash.
Brazil hove into view and a potentially lucrative deal has been struck with local operators.
Work continues on the two Sonangol sites and there is growing excitement about Corcel's third Angolan asset, known as KON-16. Gilbert has steadily built up Corcel's holding, most recently paying just $500,000 (£370,000) for a 27 per cent share. At the same time, Gilbert sold a 5 per cent in KON-16 to a Canadian investment firm for $2.5 million.
That leaves Corcel with several million dollars in the bank while retaining more than 70 per cent of this enormous, 1,000km² site.
Making ends meet at a small oil and gas firm is rarely plain sailing, but Gilbert is dedicated to success and has already made substantial progress. Plucky investors could take heart from his recent share deal. Some City fans believe the stock could reach 1.5p.
Haleon
Shopping for basics, many of us are happy with supermarket or cut-price goods.
When it comes to our health, trusted names take centre stage. Haleon is a leader in the field, with a stable of brands used across the world, including Panadol, Tums, Day Nurse, Sensodyne toothpaste, Nicorette and Centrum vitamins.
Split off from pharmaceutical giant GSK at £3.30 in 2022, Haleon had a bumpy market debut. But the stock has gained ground, reflecting strong sales, rising profits and steady growth in dividends.
Last month, chief executive Brian McNamara set out his stall for the future, suggesting the firm could deliver £800 million of savings over the next five years, improve profit margins and increase sales by 4 per cent to 6 per cent annually – well ahead of the market.
His pitch has gone down well with investors and Haleon shares are now at £4.18, having risen 8 per cent in the past month alone. Recent directors' dealings suggest McNamara's colleagues are optimistic, too.
Asmita Dubey, a hot-shot at L'Oreal, bought Haleon stock for the first time since joining the board three years ago, forking out nearly £62,000 on shares at £4.01.
Marie-Anne Aymerich, formerly at Unilever and LVMH, spent a cool £86,000 on shares at £4.05 each.
And Blathnaid Bergin, finance director at Sainsbury's and a Haleon director since February, also thought it timely to buy stock with a £25,000 purchase at £4.04.
The business encourages directors to buy shares – and quite rightly too. However, the recent flurry of deals, combined with McNamara's vision for the future are encouraging.
At £4.18, Haleon shares should deliver growth, bolstered by forecast dividends of 6.9p this year and 7.5p next.
Traded on: main market Ticker: HLN Contact: haleon.com
Checkit
Checkit is a £16 million business whose shares have fallen 40 per cent over the past year to 15.4p. But it seems that chief executive Kit Kyte believes better times are ahead as he recently spent just over £70,000 on shares at 14.16p.
The company's software, used in areas from food manufacturing to hospital drugs, helps to make sure equipment and machinery are working properly.
An annual meeting this week should reveal how Checkit is faring in a tough economic environment – but Kyte's purchase could bode well. One to watch.
Traded on: Aim Ticker: CKT Contact: checkit.net
SigmaRoc
Tim Hall knows a thing or two about rock. Now 72, he has spent his career in aggregates, with notable successes along the way.
In 2019, he became a director at SigmaRoc, a fast-growing lime and limestone business, valued on the stock market at £1.2 billion.
SigmaRoc was founded in 2016 by Max Vermorken, an exceptionally hardworking Belgian with an ambition to create a leading limestone firm across Europe.
Much work has been done, recent activity has been ahead of expectations and Vermorken is now focused on increasing sales by up to 5 per cent annually, improving profitability and rewarding shareholders with dividends or share buybacks. The targets were announced on May 7. A week later, Hall spent £84,000 on shares at £1.03 each. SigmaRoc has since risen to nearly £1.07 but there should be further to go.
Lime and limestone are critical in making steel, glass and paper, fertilising crops and purifying water, milk and sugar. Economic uncertainty is unhelpful but SigmaRoc is outperforming peers and Hall's purchase is encouraging.
The shares have risen 85 per cent since Midas recommended them in January last year, and cautious investors may choose to bank some profits. But this remains an attractive long-term investment.