On the same day Stanley Gibbons (SGI) reported a profit warning, chairman Martin Bralsford purchased 22,000 shares in the company at 238p, for a total £52,360.
IC TIP:
Buy
at
270p
Mr Bralsford's actions are a vote of confidence in the company, whose share price has fallen since our buy tip a year ago (312p, 24 April 2014) to 270p. And we think his lead is worth following. First, the profit warning this month wasn't to do with problems in the underlying business, but the timing of a number of high-value sales, which did not complete by the year-end in March. These transactions will instead be booked in the first half of the current financial year. What's more, earnings will still be materially above last year's figure.