Selling Gunns shares

From the WEEKEND AUSTRALIAN – Business Section 27-28 February 2010; page 40

Its been a tough week for Gunns with the stock down 35 per cent to 57 cents a share due, it seems, to the same offshore economy and currency gloom that has hit similar companies. Back in September 2008, the company raised money at $1.50 a share.

The stock’s near-term high was $1.04 in early January 2010 then the dismal profit hit the stock price.

Back on December 8 last year, company boss John Gay sold 3.4 million shares – for $3.1 million, or just over 90 cents each.

The sale was disclosed and Gay confided he had a financial commitment to meet and it was the first time he had sold shares in the company for 35 years.

The company reported a profit of $420,000 in the half, well down on market estimates of $12 million-plus and a year ago returns of $33.6 million.

The ASX queried the company on the big difference on its reported numbers and market estimate but not, it seems, on the chairman’s share sales in December.