PGC directors' guide on how to speculate in company stock

Bryan Mogridge

Bryan Mogridge recently guided on what options to consider in dealing with PGC company stock. The full release can be found here, but we were intrigued by the following excerpt, 

"The further option is for shareholders to sell some or all of their shares into the AEP offer and then contemplate reinvesting at a lower price, should it eventuate. Naturally, there is risk in this strategy but we felt it important to point out the opportunity to shareholders and advise you that we as the independent directors will consider our position in this regard and may decide to sell some or all of our shares into the AEP offer and then repurchase at a later date. Once again we must reiterate that before you take any action you should discuss the situation with your advisor and recognise that any decision to act is yours alone."

This is a first in our experience and nobody that we spoke to have come accross guidance from an independent director before that "suggested" you sell your company stock now, because he and his "independent" adviser thinks you can buy it back for less in a few weeks' time. 

Irvine

We suspect it is only to provide cover for said director and retiring independent director Bruce Irvine to sell their shares into the offer, so guess what the next official release from the company will say? Directors selling their shares. 

In our experience and opinion it is totally out of order for a director to suggest you sell your shares now to buy it back for less later, which simply adds to a long list of inappropriate behaviors for PGC's directors.  

At least the same release also announces the date for the belated retirement of Irvine as director, which is a step in the right direction for both Irvine and PGC. 


Cheerio!
jA