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Don't follow St Modwen family share sales

St Modwen's two largest shareholders have reduced their stakes, but we still reckon the shares are undervalued
April 17, 2014

Simon Clarke, non-executive director of regeneration specialist St Modwen (SMP), sold 1.5m shares in the company earlier this month and has therefore reduced his holding in the group to 3.1m shares. But there's more going on that this. Mr Clarke, who is the son of Sir Stanley Clarke - founder and former chairman of the property group - also represents the interests of the Clarke and the Leavesley families at board level and they have also been busy selling shares.

IC TIP: Buy at 361p

Indeed, the two families are the company's largest shareholders and they have sold 8.27m shares between them, representing around 3.75 per cent of St Modwen's issued share capital. Sold at 380p a share, that move generated a cool £31.4m in total. That leaves the Clarke family with 18.6m shares, or 8.43 per cent of the share capital, while the Leavesley family will hold just short of 16m shares, or a 7.26 per cent stake. Those members of the two families who sold shares have agreed not to make any further disposals for a period of 90 days without the written consent of JPMorgan Cazenove and Numis Securities.

BUYS       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
600 Group  (The) Derek Zissman7 Apr 14150,00017.526,250300,0000.355
Abcam Lady Patten of Wincanton9 Apr 1413,61736749,97413,6170.007
Abcam♥Dr Jonathan Milner (ce)9 Apr 1418,00037367,14027,103,37513.525
Access Intelligence Michael Jackson (ch)3 Apr 141,280,0003.7548,00023,865,85810.151
Anglo American Jim Rutherford8 Apr 148701,55913,5661,528<0.001
Anglo American Phuthuma Nhleko8 Apr 148911,55913,8947,7610.001
Britvic Ian McHoul8 Apr 1410,00071171,10010,0000.004
Craneware Keith Neilson (ce)3 Apr 144,57154024,6833,488,38012.916
Dunelm  Liz Doherty7 Apr 142,5001,00325,0752,5000.001
Everyman Media  Adam Kaye3 Apr 14100,0009090,0002,830,3417.799
Gaming Realms Michael Buckley (ch)8 Apr 1465,00021.513,97516,465,00010.239
Gaming Realms Michael Buckley (ch)8 Apr 14135,0002128,35016,600,00010.323
Gaming Realms Michael Buckley (ch)3 Apr 1461,66821.513,25916,361,66810.175
Genus Karim Bitar (ce)3 Apr 143,045985.0229,99440,0080.066
Genus Bob Lawson (ch)3 Apr 142,05197519,9977,2010.012
IndigoVision  M Kneen (ce)3 Apr 142,75046112,678212,5442.798
JPMorgan Emerging Markets Inv Trust Sarah Arkle7 Apr 146,000546.7532,8056,0000.005
Just Retirement  Shayne Deighton3 Apr 1425,000139.4634,8661,157,4330.231
Kromek  Richard Morgan (ch)7 Apr 1440,0005020,000372,3100.346
McBride CD Bull (ce)4 Apr 1420,00093.7518,750340,0000.187
Monitise Victor Dahir4 Apr 1460,00074.944,94060,0000.003
Next Fifteen Communications  Richard Eyre (ch)8 Apr 1418,16710919,802122,0770.201
Ocado  Ruth Anderson3 Apr 143,387468.215,85860,0000.010
Prudential AJL Nightingale4 Apr 1415,0001,328199,20030,0000.001
Reconstruction Capital II IA Florescu8 Apr 14589,0001270,68013,120,07513.120
RM2 International SARI Molson (ch)8 Apr 14225,00073164,2507,000,0002.191
SolGold*NCH Mather3 Apr 142,222,2229200,00065,519,57010.047
Synety* MJK Seemann (ce)9 Apr 146,00025015,000875,55310.403
Synety* SW Cleaver (ch)9 Apr 1418,70125046,753317,2543.769
TyraTech IncBarry M Riley7 Apr 14209,00011.5224,0773,055,5561.490
TyraTech IncBarry M Riley4 Apr 14248,00011.5228,5703,055,5561.490
TyraTech IncAlan Reade (ch)7 Apr 14197,50011.8223,34512,481,3586.086
WH Ireland  Richard Killingbeck (ce)9 Apr 1420,000106.521,300890,0003.737
Walker Crips  RA Elliott8 Apr 1446,5534320,018444,7381.202
SELLS       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
accesso Technology  Steve Brown3 Apr 14590,0006904,071,0001,133,9165.613
African Eagle Resources Julian McIntyre9 Apr 14184,245,0470.225414,55100.000
InterQuest  Gary Ashworth (ch)9 Apr 14250,000100250,00012,509,91236.735
IP Group David Baynes3 Apr 14125,000200250,000426,0660.089
Mattioli Woods Bob Woods (ch)3 Apr 14220,000445979,0003,073,70315.421
Michelmersh Brick Martin Warner (ce)3 Apr 141,000,00069690,0005,588,7326.914
Prudential Jackie Hunt4 Apr 1436,0001,338481,84985,9680.003
Quixant*Chen Tai Lin9 Apr 142,221,7391403,110,4354,589,8427.101
Quixant*Nick Jarmany9 Apr 148,109,34714011,353,08616,752,92325.919
Quixant*Gary Mullins9 Apr 143,142,1731404,399,0424,058,6416.279
RTC  J T White8 Apr 142,137,98620427,59700.000
St Modwen Properties Simon Clarke3 Apr 141,500,0003805,700,0003,112,6571.406
*Placing/tender/open offer ♥Spouse/connected party †Depositary receipts