Never a dull moment for QPP (Quindell). A recent RNS (http://is.gd/TFiUiH) reveals directors purchasing 1.6m shares at around 123p. What is especially interesting is that the directors did so by way of loan, pledging 52m of their own shares as collateral. The lender, Equities First Holdings LLC, is prohibited from short selling or voting.
Chariman Rob Terry said: “As demonstrated by the purchases made by some of the board today and recently by other members of the board and executive team, we believe the current market valuation of the Company is materially below its true value. The board remains confident of meeting full year market expectations and of the Company’s longer term prospects.” They also alludes to possible further purchases.
The bulls and bears each consider the news as vindication of their own views. The bulls argue that the directors must be confident in the company’s undervaluation to make such a move. The bears argue that they must be making a desperate attempt to buoy up the share price.
As at writing, the share price is up nearly 3% to 129p. No position.