Russell sells his entire stake in Fairpoint

Hanover specialises in providing management expertise to rescue struggling companies, and its input into Fairpoint - including a significant shareholding - has seen a dramatic improvement in fortunes, with adjusted pre-tax profits last year jumping by 87 per cent to £7.6m. Adjusted earnings per share virtually doubled to 13.4p, helped by a continuing strategy to diversify its revenue stream, and to build on its claims management services. And since last June the share price has risen from 65p to 108p. So, Hanover started to reduce its original 23.8 per cent stake in the company by selling 5m shares on 19 March at 103p and the remaining 4.98m on 12 April at 105p. Non-executive chairman Matthew Peacock was a founding partner in Hanover and as a result of the sale has no direct or indirect interest in Fairpoint shares, although he will continue to serve the board until a successor is appointed. Non-executive director Thomas Russell also leads investment analysis and research at Hanover and sold his entire stake of 38,509 shares in Fairpoint at 105p on 29 April. Meanwhile, on 12 April, Fairpoint chief executive Christopher Moat exercised 450,000 share options at 50p per share and sold them on the same day at 105p a share. The sale was required to fulfil some personal financial commitments, and Mr Moat still holds 201,531 shares in the company as well as options on another 450,000 shares.

Jonas Crosland

Show of faith for London Mining

Shares in iron ore miner London Mining (LOND) have yet to recover from the drubbing they took during the meltdown in iron ore prices last summer. The price of the key steelmaking ingredient fell by nearly a half on fears of an economic hard-landing in China, but they've since bounced back to nearly the same levels as before, around $140-$150 a tonne.

Yet London Mining's share price continues to wallow at a multiyear low, around 116p, amid a wider mining sector sell-off. So, three non-executive directors have made a show of faith, by buying a small amount of shares worth £5,650, £22,800 and £39,700 apiece. What's more, executive directors have elected to waive all year-end cash bonuses and to take any bonus payable for 2012 entirely in ordinary shares, with 50 per cent being deferred until a share price of 255p is achieved.

True, we see the potential for another, smaller pullback in the iron ore price over the short term. But London Mining's main Marampa mine in Sierra Leone should still be able to turn in a good profit as production expands nearly fourfold over the next two years.

London Mining's shares are lowly rated on 6.2 times forecast earnings for 2013, falling to four times 2014's earnings estimates, assuming $120 a tonne iron ore prices. The company is a heavily geared play, but we like its chances. Speculative buy.

Matthew Allan

Buys

Sells

Table compiled by Robert Ansted

Key to abbreviations: ch = chairman; ce = chief executive; cfo = chief financial officer; fd = finance director; coo = chief operating officer; cs =company secretary; md = managing director