Simon Henrys holding worth say $98m so at $18m loan he is safe as houses from a margin call one would think. Even if SP halved again he would be fine
You are making a huge assumption that he has not used his DGL shares as collateral for other personal loans.
It is highly unusual imo for any public listed company to extend a loan (using debt off its own balance sheet) to its CEO/MD to refinance his personal debts using the company’s shares as security.
Remember how Simon on a few occasions in the last 2 years entered the market and bought DGL shares to demonstrate his confidence in the company? Where did he get the money from to buy those shares?
So in effect, we now have a situation where DGL has funded the purchase of those ‘expensive’ shares Simon bought!
And there were some posters here who bought too on the back of Simon buying. Ouch!
You are making a huge assumption that he has not used his DGL shares as collateral for other personal loans.
It is highly unusual imo for any public listed company to extend a loan (using debt off its own balance sheet) to its CEO/MD to refinance his personal debts using the company’s shares as security.
Remember how Simon on a few occasions in the last 2 years entered the market and bought DGL shares to demonstrate his confidence in the company? Where did he get the money from to buy those shares?
So in effect, we now have a situation where DGL has funded the purchase of those ‘expensive’ shares Simon bought!
And there were some posters here who bought too on the back of Simon buying. Ouch!
Where does it say he borrowed the $18m from DGL balance sheet? I cant see that written anywhere
Not unusual to follow insiders when they buy. I wouldnt be too hard on ones self if you are in that position.
Bought a few this morning, but I haven't put to much work in here and have put it in the "punt" (vs investment) category. Reason for purchase - director buying 150k worth, looks oversold, ebitda:ev currently around 4, SP close to NTA as backstop, relatively reliable industry, had a good close yesterday In an overall down market - selling could be slowing down and the majority of tax selling will end in the next few days.
Could be another downgrade which would be the big risk here to the above thesis.
In terms of how much I bought it's a very small amount.
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Originally Posted by Rawz
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