We’re not experts in stocks and shares here at GFG Towers, not by a long way, but even to us the sight of lots of top executives in a company selling their shares in the months before issuing profit warnings and presiding over a slump of around 50% in share value looks a little – well, undignified.
Quoted in yesterday’s Times, CEO Mike McCollum said of his share dealings that ‘it was the first time he had sold part of his “core” shareholding since Dignity had floated in 2004 and the move had been to diversify his savings.’
How lucky Mr McCollum obtained a share price of over £24.00 for each one of his 271,332 shares – a quick tally up shows that by offloading his shares in the company he runs, he’d have picked up £5,864,774.83.
What foresight was shown by the man in charge of the company that charges bereaved people among the highest prices for a funeral.
Just imagine if he’d held on to them until now, and tried to diversify today, with the shares priced at a miserly £.9.53 each earlier this morning after the stock markets took fright last Friday.
It’s good to know that the people at the top know what they’re doing.
Very reassuring indeed, these people know what they’re doing!
I’m no expert but this looks very much like insider trading to me. I hope the Financial Conduct Authority is aware.
As someone who dabbles in trading I’m pretty sure this IS classed as insider trading!
http://lexicon.ft.com/Term?term=insider-trading
Smells like libel.
Given that The Times has seen fit to highlight the actions of these bosses, ie selling off shares before issuing a profit warning, it would seem that asking questions about insider trading is legitimate and fair comment.