Date: June 23 2012
JOHN Seymour, one of the founders of the company bearing his name, has topped up his stake in the road and bridgeworks group.
He did so on the day that Seymour Whyte scrip was poleaxed after a particularly nasty earnings downgrade.
The construction group went public in 2010 when it issued scrip at $1.10, made it up to $2.80 within a year, was selling at $1.69 on Monday and closed yesterday at $1.06.
What brought this about? Well, on Tuesday, the Queensland-based group said it had reviewed its projects and, what with one thing and another, tax-paid earnings for the current year would weigh in at $8.7 million - compared with the $12.8 million forecast.
While the company's robust sales growth continued, various things in the current half, including margin deterioration and timing issues, saw earnings slide by 93 per cent with the result that only $500,000 was made on sales of $138 million.
On that little piece of news the shares fell from $1.69 to 97¢.
John Seymour bought 200,000 shares at $1.07 or so on the downgrade day.
That was the first time he had appeared in the market since March when he was on the other side of the fence.
Then he raised $2 million selling shares at $2 apiece.
Brian Riggall, the then managing director, sold shares at the same price, collecting $4 million. He resigned soon after.
Seymour Whyte is now valued by the market at $82.5 million - about 9.5 times current-year earnings.
Meanwhile, the scorecard registered $2.9 million to $10.1 million in favour of sellers.
There were several repeat faces or companies in the sellers' list.
Seven Group's Bruce McWilliam had $4 million against his name, adding to a similar amount earlier this month following the expiry of a zero-cost collar.
Last week, M2 Telecommunications chief Vaughan Bowen sold $8.6 million of stock; this week John Hyn collected about $258,000.
Selling at $3.44 and $3.37 respectively, both were ahead of the short-term game as the scrip closed yesterday at $3.21.
Douglas Godshall of Heartware International was a seller, along with other directors including Robert Thomas in recent weeks.
Last week, David Farley, managing director of Australian Agricultural Company, was a buyer; this week chairman Donald McGauchie spent $54,150.
This material is subject to copyright and any unauthorised use, copying or mirroring is prohibited.
[ Canberra Times | Text-only index]