RE: Strix CEO, BODs buy shares5 Apr 2022 14:11
Back in today early at 205 having sold at 223 on the results and outlook statement being a little underwhelming. Strix has been good to me as I was a broker (now retired) when it was floated at 100p and bought in the placing. Didn't get the top by a long way but did sell some at 310 on the way down.
I did ask at the investor presentation, which I found impressive, about directors possibly buying back in given their confidence and having sold so well higher up, so as the board have gone ahead I thought the least I could do was follow them back in. I do have concerns, China covid spread, cost inflation etc but at the end of the day the share price is reflecting a lot of that and I keep coming back to the fact that this is a world class leader, with strong innovation and ESG credentials, and I will feel like a prize t**t if they get taken over and I am not holding!
By the way, comments about market makers loading up on stock ahead of the divi are tosh. All things being equal, share prices drop by the amount of the div when they go xd so it is a zero sum game. Additionally, the days of MMs running big long term 'back books' are long gone, they are typically bank owned these days, risk-averse and encouraged to keep flat books so not likely to park a few as a punt. There are some income funds who if short of income will 'dividend strip', ie buy before the xd date and sell after, again there is no free lunch and there are trading expenses/spreads involved.