Ellies

[Preston]

Ellies is getting smashed. No official trading statement issued, so i am not sure if this movement is justified.

[Preston]

Directors dealing in shares seems to be (imo) a direct contravention to the company Act. The only news that is dominating this company is the Director dealing with regard to sale of share. Question, What prevent them from presenting a misstated financial statements?

[fressa]

Theres been alot of dodgy things going on in Ellies for some time. I think the share price is merely reflecting the dealings of its directors. Id stay away.

[#4]

well, my five shares short are in the money -:) Remnants of a miscalculated stoploss. I need Ellies down to 15c a share so I can cover my brokerage fees

[Preston]

I also believe that. My only concern is what perception those dealing are sending out to the market and based on the collar transaction that occurred on the 4 Feb 2013, director seems to benefit the most.

[Preston]

Company Acts / King 3 states that Directors must act in good faith of the company. The directors selling their share are not acting in the good faith of the company by virtue of their perception that there are creating. It will not surprise me that these directors in the near future could have legal proceeding against them?

[reyden]

Directors of Ellies were in the market for a fund manager to manage their "Family interest", I think they are more addicted to trading and getting less focused on managing the business.

[fressa]

It will be interesting to see if other directors sell in the near future. Will give a very clear indication of their intention if they do sell.

[Preston]

Also remember interim result are not audited.. So what prevent them from understating earning and driving share price lower. This is beneficial for them with regards to exercising the "put" part of the collar transaction.

[fressa]

take a read through the latest post on Alec Hoggs blog entitled "Directors Dealings - the growing trend of legal avoidance" The Ellies directors started with this nonsense a while back. In their defense though, in interviews they have always suggested that 2013 - 2015 were not going to be as glorious as previous years.

[Preston]

2015, coincide with the expiry of the collar transcation.

[SimonPB]

but it is no illegal, directors are allowed to sell and structure (even go short if they brave enough) .. point is if you don't like then don't invest in it

[SimonPB]

but by your reading of the act a director can never sell ??

[Preston]

I do like the Company but not the activities of the Directors.

[Mark_A]

I have been exchanging emails with Wayne Samson. He says that he cannot give an explanation as to why the share is falling. He says they too are concerned as to why the share is in freefall. I have a really bad feeling. It must be time to take the knock and jump ship.

[Preston]

Simon, as directors of company, there are a few trick one can do to make the share fall. 1. Do not declare a dividend . (accomplished) 2. State the interim result missed the mark. Interim result are not audited. (no assurance from 3rd party ) 3. Action of directors speaks loauder than words, all these selling are stirring the pot and creating a negative vibe. Why do they not issue an official statement abt earnings. All these action are suggestive that directors are not acting responsibly and in the best interest of the company.

[#17]

I think the issue is that the infrastructure division's pipeline is hard to forecast because it is made up of small high value projects. Most likely - their pipeline of potential projects looks a bit thin in this division. So if you take out that revenue, you end up with a par performance for 2012. If you are still in contact with Wayne Samson - I guess the best question to ask would be what is the potential pipeline for the Infrastructure division?

[SimonPB]

the half year is only end October, so any update is way away .. and rules only require a update if results 20% different either way ..

[Preston]

I agree with you, so without any empirical evidences, what is the reason for such a substantial fall from R7.20 to R6.36?

[SimonPB]

well it has hit R10, was R10 a fair price, dies anythign go u for ever ?? and the recent fall, sellers (and a lot more than just directors selling) .. point is easy, many years ago I decided I didn't like how the directors managed so I sold my holding at about 205c and haven't looked back