Phumelela Directors - Who's Your Daddy?

It's always interesting to follow that little section coyly entitled 'Director's Dealings ' on the JSE.

Some time ago I idly asked the question with regard to a massive 'sell' trade by director (he's actually the non-executive chairman ) Peter M Malungani. At the time it was recorded at about R37,000,000 but I note that it has subsequently been revised up to R42,000,000. Hardly had I (innocently) posed the question than the selfsame Mr Malungani pops up on no less a programme than Carte Blanche with regard to other business dealings. He is described as 'controversial' on the programme.

Bernard Kantor, on the other hand, has been buying the share as if it is the only game in town according to recorded trades.

Then we have Mpho Ramafalo. This gentleman appears to be the beneficiary of some sort of share option scheme as he 'buys' at regular intervals only to 'sell' immediately at a very tidy profit.

Could somebody enlighten me as to how all of this fosters and promotes the business?

clearly fosters and promotes the business of said messrs....

Im sure these guys could find an investment with a higher ROI maybe putting their money into a game that they love is from the heart and not the pocket??

Hibernia -

I'm not sure I can agree with you :

eg

Director 'buys' ( 'acquires' would probably be a better description as it appears to be a share option scheme ) the share on 31.10.2008 @ R4,90.

Director sells on 15.12.2008 @ R 12,00.

Trust me - the market value on 31.10 was not R4,90.

And repeats same transaction at regular intervals.

Investment? Can I have some too,please!

Garrick,

Careful now.
On 31/10/2008 the price was 1180, and 10080 shares changed hands.
On 15/12/2008 the price was 1225, and no transactions were recorded.

Do you have your dates mixed up, perhaps?

no ulterior motives here hahaha

From the SENS archive:

5 November 2008
Director : M L Ramafalo
Number of shares : 33,400
Price per share : 490 cents
Date of transaction : 31 October 2008
Value : R 163,660
Class of shares : ordinary
Nature of transaction : Exercise of options
Nature of interest : Direct Beneficial

15 December 2008
Director : M L Ramafalo
Number of shares : 10,400
Price per share : 1200 cents
Date of transaction : 11 December 2008
Value : R 124,800
Class of shares : ordinary
Nature of transaction : Sale
Nature of interest : Direct Beneficial

12 January 2009
Director: M L Ramafalo
Number of shares: 23,000
Price per share: 1200 cents
Date of transaction: 9 January 2009
Value: R 276,000
Class of shares: ordinary
Nature of transaction: Sale
Nature of interest: Direct Beneficial

Garrick poses an interesting question though

Date of transaction : 31 October 2008
Nature of transaction : Exercise of options

So he didn't 'buy', he took what was due to him, then sold a little later.
Nothing wrong with that?

Was he alone?

Who is M L Ramafalo?

With options like these, would he have been 'given' them in the first place, or would he have had to purchase the options? In any case, turning R164k into R400k in 2 months with essentially zero risk is a great deal but it's small change in the greater scheme of things. It's not quite in the R42m region that Malungani traded.

Sabre..

Business in RSA follows a pattern...past 1994..

first we expand...into Africa..only 1 country's economy > than Gauteng's economy
include.....BEE...AA...EE..
list..JSE...
then we struggle to keep the share price up..nepotisim..look at town councils..
then we take over....Gold circle..destroy the competition..
then we have to "right size"....get control back of the timebomb..
then we have to "down size"...double staff compliment due to takeover..
then...last but not least....WE CAPSIZE....

It's like the lotto winners..
10 years later...O.U.T..
the fall from mink to manure...inevitable...because the business is not build on fundamentals...warren buffet....but rather traded like george sorros...dot com....dot bom......dot gone.....