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In most cases it’s just a sign of commitment and confidence that the Director is literally invested in ensuring they leave the company in a better state than they took it on. It also helps them think at a very personal level about the impact on shareholders of any dilution - so other investors know that they really do have the interests of shareholders at heart. If all the Directors invest I don’t think it spooks the market if one sells at a time for whatever personal reason.
Could the same not be said for P.I's , heavy buys can also boost the SP short term but Directors would be expected to invest in their Company , not speculate like many that buy AIM stocks.
Director purchases are a double edged sword for directors. Buying is one thing and can give the SP a short term boost but then realising their investment by selling can drag the SP down by just as much or more. I would imagine that for some it is a strategic decision not to invest in the companies whose boards they sit on.
Hello again Tacuma. You are quite right regarding the lack of Europa director purchases over the longer term. I wasn't aware of their recent investment history here, or rather the lack of it, until you pointed it out. As you say, it can't have anything to do with closed periods or the like in EOG's case. In answer to your other Q, I have absolutely no idea why anyone would want to bur £2 worth of shares in any company. Could these small purchases perhaps be a book tidying up exercise by a market maker, or something like that? I currently hold no EOG shares, although I have held them in the past in a very small way. I am, however, invested in Egdon, RBD and UJO as you can guess from my posting history. That's because I'm interested in the UK onshore oil scene, and I like their licence portfolios more than EOG's nowadays. Also, I felt that the onshore players' share prices might hold up better than those oil companies whose assets are mainly offshore, and where the development and lifting costs are so much higher. I believe these costs currently exceed the oil price in many areas such as the North Sea.
@ Grey Panther, Since you've popped in to see us here, and you're welcome, as a RBD poster, perhaps you may know the answer to a Q that I have posed here a couple of times. Why do your fellow posters seem to have a preponderance of tiny £2 and less buys listed, I really don't get it, is there a tactic with this habit? I hope you might know.
Thank you for your friendly advice GP, all I wanted to know was is it possible for AIM directors to buy their own companies shares at will. As I mentioned, I Googled my own question and found the answer, so no need to correspond. I think it would be safe to assume that they have little interest in trying to lift the share price by backing their own company or else they would have already tried to rescue this appalling SP that we have.
When you say that he is a sensible person, is that because he has not increased his holding here. Many of us LTH here hold more stock than the Directors. That might influence prospective entrants here to wonder why they hold so little.
The directors do dip in here for a scan read on occasions so I'm not going to reveal my avatar to them or anyone else. That's why I'm a P.I .
One other thing, your closed period theory is weak, that' s all we've heard as an excuse from some of their defendants, they haven't invested here since 2018, right at the height of Hugh's big promise of the elusive Major making an offer, so that cannot hold any water in my mind.
I thank you for your advice but no thanks.
GLA as usual.
If the Directors are in a closed period, then they've been in it for a bloody long time...
Hello Tacuma. I can't think of any really good reason why you shouldn't write to Europa's acting CEO Simon Oddie if there's something you want to say. He's a sensible person, so why not be bold and identify yourself too? If I were in his shoes I wouldn't waste my time replying to an anonymous correspondent who might not even be a shareholder. Good luck anyway. I suppose the directors might, just conceivably, be in a "closed period" when they can't buy any shares because they know something the market doesn't yet know.
just Googled my own answer. Come on you lot at Europa Towers, get your hands in your pockets.
https://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwiN4dugvqzqAhXVShUIHdcICBYQFjAKegQIBhAB&url=https%3A%2F%2Fwww.ii.co.uk%2Fanalysis-commentary%2Faim-chiefs-buying-shares-their-own-companies-ii511520&usg=AOvVaw2sc6wHl9BnlLsnCuqpnIe3
Just a bit surprised our Board members are not tempted at buying in, is there anything to say they can't, are Directors limited as to their deals ? I don't know. To me it would be the greatest show of confidence possible. Might write to them but that would identify myself, anyone else fancy an anonymous email ?
I wouldn't blame you Peaky, Myself? Guilty as charged I'm afraid. Difficult not to have one last little dip.
Im getting at itchy right hand at these prices. Agree with your sentiments in the round.
What I would say the meeting for Holmwood was far more professional, that was a fiasco at best for UKOG.
Im not joking when I say one of the Cllrs seem to ask his wife how to vote. I promise you, I am not joking.
I would be astonished if no appeal. If overturned (IF) that may also may start a change. Especially if costs involved?
Take care - I will own up if I have another dive in. Another last one!!!!!
Keep it up, Tacuma, always worth a read - and you never know you might get a job offer as an economics correspondent! Re Irish Gov attitude, suspect you may be right, but could take a few months of the new Gov looking hard down both barrels of the economic situation to let go of some of the more “virtue signalling” positions. In the very short term (at least rest of July) I think we should expect all kinds of wild Green statements and posturing as the new Minister responsible slugs it out with his deputy for leadership of the Green Party.
It seems inevitable to me that the financial fallout from this Pandemic will eventually come to bear. there is going to be a cost to us all and that can only come from public spending. I believe that taxation will rise rather than fall as this government forecasts. Although production costs for domestic, aviation and transport fuels will not rise , I can see commodity prices rising, especially in taxes and levies being applied.
The North Sea is decommissioning more and more platforms which could make oil prices rise along with gas prices. Although I'm not going to forecast where these levels will be, I'm far from being a commodities expert but common sense tells me that there will have to be vast sums of income raised to support the huge deficit ahead. This can only come from taxation revenue, not the V shaped economic upturn that is the latest mumbo jumbo coming out of Downing Street.
Therefore, my point is that with the potential for massive possible reserves in The Irish North Atlantic, and the revenue that it could generate, I don't think that we have anything to fear of possible rejection from the Irish Government for permissions needed to explore and harvest their waters. Maybe even the South Porcupine could be back on the agenda. Does anyone remember the economic rewards gained from North Sea oil production in the late 60's - 70's that just about saved us from financial ruin, and it has been a steady economic income ever since.
I noticed that Surrey Council refused permission to UKOG earlier this week, but the decision was much tighter than the defeat we suffered at Holmwood. Perhaps the tide is turning.
Not very interesting but its something to read while we wait. Knock Knock, who's there,
Simon,
Simon who.
GLA.