Where’s Gordon?
As small holders of Cash Converters (ASX: CCV), we watched with interest yesterday’s 11 per cent share price rise on volume that was 50 per cent greater than the daily average, as there appeared to be no developments to warrant this movement.
Or so we thought…
This morning, Cash Converters made a price sensitive announcement to the market, and we cannot help but wonder if there were loose lips at play that influenced yesterday’s trading activity.
Cash Converters has announced it will acquire a 25 per cent equity interest in the New Zealand Cash Converters, which plans to increase its network of stores from 14 to 50 over the next five years. This is a positive development for the company, and would appear to warrant a favourable movement in the share price under normal circumstances.
One can’t help but wonder whether ASIC should take a good look at this one, as anyone who sold shares to recent buyers who might have been better informed deserve better.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Joe Rich
:
Speaking of insider trading, Codan (CDA) recently dropped 12% the day before announcing a pretty drastic profit downgrade.
They responded to an ASX price query stating that they had no knowledge of what was behind this…it’ll be interesting to see what comes of this, as this is yet another highly suspicious turn of events!
Steve Baron
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To maintain credibility with investors the powers that be must stomp on this like an elephant. Then again circus elephants often sit on their backsides don’t they?
scott.a.shuttleworth
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Agree looks like a plus for the company but this sort of behaviour needs to stop.
Question I want to ask is why doesn’t ASIC look into these kinds of events? Not the first time its happened.
p.s. I own ccv
ANTHONY SCELZI
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I noticed this also…Insider trading is alive and well in Australia …ASIC, please do something …
grant.rogers.94
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CCV might have a history of this occurring. I can recall at least a handful of prior announcements coming out after substantial price movement has preceeded them.
Raymond
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Terrific observation and comment Roger. I looked at this and wondered myself. Keep up the good work and who knows, we may see some action from the authorities.
Well done
Valen Chan
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Exactly what I thought yesterday. While I am happy with the share price increase, I despair about the lack of disclosure in ASX listed equities, especially in the smaller companies. Of course the opposite scenario often occurs, which leaves small investors out in the cold when the dust settles…
By the way, keep up the good work Roger! I have been following this blog for a while now and you and your team’s insights have definitely changed my investment philosophy for the better. Merry christmas to you and your team.
Roger Montgomery
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And a very happy Christmas to you too Valen