In the last few days a number of substantial share purchases have been recorded on behalf of Westminster Group (LON:WSG) ‘insiders’ and the share prices being paid has increased markedly.
At the start of September in an article titled ‘Westminster Group – giving money away’ I noted that buying the shares at 1.6p in the market looked great value.
Especially so as the group’s brokers were estimating that next year the group could well be showing earnings of 1.6p per share.
The Banbury-based company is a specialist security and services group that operates worldwide through an extensive international network of agents and offices across the globe, situated in France, Germany, Saudi Arabia, Ghana and Sierra Leone.
Delays led to downgrades
At the time a number of big contracts were still under negotiation, with a couple being close to signing-off.
Two months later the group declared that operational delays had seen a slippage in a multi-million Technology project – the news of which saw the shares drift easier to 1.425p.
It also brought about a broker’s downgrade on the group’s earnings.
The nibbling starts
However, since the beginning of this month there has been a constant nibbling away at the company’s shares.
At the start of this week, they responded to sizeable buying and edged up to 1.85p.
On Wednesday the buying persisted, closing at 2.05p.
It now transpires that three of the group’s key executives – the CEO, the CFO and the Co Sec – were buying additional holdings, at prices from 1.78p to 1.88p – a total of 2.137m shares.
Another 1.284m shares were purchased by Directors yesterday at prices ranging from 2.24p to 2.3p per share.
At the same time other company employees also bought shares.
Over 10m shares were traded in the first four days of this week, with dealing volumes up again today.
Conclusion
So close to the £7.5m group’s end of trading year, such activity can only be seen in an incredibly positive light.
‘Insiders’ – the workers on the shop floor who can always see what is going on – have limited times in which they can deal in a company’s equity.
We have already been informed that some substantial contract negotiations are underway – could any of these be close?