Mobile phone and set-top box repairer Regenersis (RGS) has been a stunning speculative tip since we recommended buying the shares at 76p in October 2011. With the price now at 270p, investors who followed our advice have enjoyed a whopping 255 per cent return. And, judging by the actions of the company's board members, the shares could still have some way to go.
Chairman Matthew Peacock and director Tom Russell recently purchased 40,000 shares at 256p each, totalling £102,400, through the investment vehicle Hanover Investors, of which they are both partners and which now has a 22.4 per cent stake in Regenersis. To recap, it was Hanover Investors that acquired a significant stake in Regenersis and staged a boardroom coup in March 2011, bringing in the existing management team. Meanwhile, independent non-executive director Rob Woodward snapped up 4,459 shares at 269p a piece on 4 November, totalling £12,006, which followed finance director Jog Dhody's purchase of 39,000 shares on 24 September, at 255p a piece.
After a significant re-rating, the shares are trading on 15 times forward earnings, but given the potential for double digit EPS growth over the next two years and the fact that the company's directors are piling into the shares, we would suggest that readers who followed our buy tip now run their profits.
Telecity slumps as finance director exits
Brian McArthur-Muscroft, finance director of computer data centre specialist Telecity (TCY), has sold nearly all of his shares in the company after deciding to step down from the role in order to "pursue a new challenge" - he has been with the company for seven years. Although that was partly offset by modest share purchases by chief executive Michael Tobin and two non-executive directors - worth £152,210 in total.
Mr McArthur-Muscroft and his wife sold just over £787,000 worth of Telecity shares shortly after the group announced his departure - despite agreeing to stay in the role until 31 January 2014. Should Telecity find a successor before then, Mr McArthur-Muscroft will also receive a termination payment of £428,800 in lieu of his notice period.
Telecity's share price rose nearly threefold in the five years to mid-2013, when it peaked at just above 1,000p a share. Since then the shares have dipped sharply and last week they hit a new 52-week low of 663p. Moreover, July's half-year results revealed more modest growth than investors had become accustomed to, despite a further capacity increase. Still, a trading update earlier this month signalled that the company remains on track to meet full-year 2013 earnings forecasts, while the group's long-term growth prospects appear to remain intact. But at 668p - and trading on 17 times forecast earnings compared with a peer group average of nearer 24 times - scope for further near-term upside looks limited. Hold.
BUYS:
| Company | Director | Date | No. of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Aggreko | Ian Marchant | 01 Nov 13 | 3,500 | 1,588 | 55,580 | 3,500 | 0.00 |
| Anglo Pacific * † | Mark Potter | 05 Nov 13 | 51,281 | 195 | 99,998 | 51,281 | 0.05 |
| Anglo Pacific * † | Julian Treger (ce) | 05 Nov 13 | 1,230,768 | 195 | 2,399,998 | 1,230,768 | 1.11 |
| Arden Partners | Jonathan Keeling | 31 Oct 13 | 25,000 | 48.5 | 12,125 | 2,534,334 | 11.04 |
| Barclays | Tushar Morzaria (fd) | 31 Oct 13 | 10,000 | 266.25 | 26,625 | 10,000 | 0.00 |
| Berkeley Group Holdings † | D Howell | 31 Oct 13 | 1,200 | 2,450 | 29,400 | 8,631 | 0.01 |
| Blavod Wines and Spirits * | Sarah Bertolotti (fd & cs) | 01 Nov 13 | 1,000,000 | 1 | 10,000 | 1,124,667 | 0.31 |
| Digital Barriers * | Colin Evans (md) | 04 Nov 13 | 48,571 | 140 | 67,999 | 623,161 | 0.97 |
| Digital Barriers * | Dr Tom Black (ch) | 04 Nov 13 | 142,857 | 140 | 200,000 | 4,103,072 | 6.38 |
| Digital Barriers * | Paul Taylor | 04 Nov 13 | 14,285 | 140 | 19,999 | 48,767 | 0.08 |
| Digital Barriers * | Bernie Waldron | 04 Nov 13 | 25,000 | 140 | 35,000 | 59,482 | 0.09 |
| Digital Barriers * | Zak Doffman | 04 Nov 13 | 64,285 | 140 | 89,999 | 594,399 | 0.92 |
| Diverse Income Trust (The) | Michael Wrobel (ch) | 05 Nov 13 | 88,731 | 79.3 | 70,364 | 200,000 | 0.06 |
| Fidelity Special Values † | Benjamin Thomson | 04 Nov 13 | 10,968 | 911.69 | 99,994 | 10,968 | 0.02 |
| French Connection | Adam Castleton (fd) | 05 Nov 13 | 33,000 | 37.5 | 12,375 | 33,000 | 0.03 |
| Gable Holdings Inc * | W Dewsall (ce) | 04 Nov 13 | 90,345 | 55 | 49,690 | 24,457,967 | 18.42 |
| Globo | Costis Papadimitrakopoulos (md) | 31 Oct 13 | 150,000 | 65 | 97,500 | 69,545,197 | 18.61 |
| Hiscox Ltd | Mrs. Caroline Foulger | 04 Nov 13 | 10,000 | 676.55 | 67,655 | 10,000 | 0.00 |
| Inchcape | Alison Cooper | 01 Nov 13 | 226 | 639 | 1,444 | 2,726 | 0.00 |
| Inchcape | John Langston | 01 Nov 13 | 267 | 639 | 1,706 | 267 | 0.00 |
| Inchcape | Nigel Northridge | 01 Nov 13 | 267 | 639 | 1,706 | 25,267 | 0.01 |
| Inchcape | Till Vestring | 01 Nov 13 | 341 | 639 | 2,179 | 30,341 | 0.01 |
| Inchcape | Kanwarpal Bindra | 01 Nov 13 | 504 | 639 | 3,221 | 504 | 0.00 |
| IPPlus † | William Catchpole (md) | 01 Nov 13 | 35,430 | 28 | 9,920 | 2,560,870 | 8.12 |
| IXICO | Professor Derek Hill (ce) | 31 Oct 13 | 4,000 | 51.5 | 2,060 | 477,169 | 3.19 |
| IXICO | Charles Spicer | 01 Nov 13 | 9,729 | 51.39 | 5,000 | 42,811 | 0.29 |
| Jupiter Fund Management | Jon Little | 06 Nov 13 | 2,513 | 395.43 | 9,937 | 2,513 | 0.00 |
| Kirkland Lake Gold Inc | Dawn Whittaker | 31 Oct 13 | 800 | 226.48 | 1,812 | 800 | 0.00 |
| Midas Income & Growth Trust | Richard Ramsay (ch) | 05 Nov 13 | 37,167 | 132.75 | 49,339 | 37,167 | 0.09 |
| Plethora Solutions Holdings * | J Mellon (ch) | 01 Nov 13 | 20,000,000 | 9 | 1,800,000 | 116,512,808 | 29.46 |
| Plethora Solutions Holdings * | R Openshaw (ce & cfo) | 01 Nov 13 | 333,500 | 9 | 30,015 | 750,169 | 0.19 |
| Plethora Solutions Holdings * | Dr. GH Bailey M.D. | 01 Nov 13 | 55,600 | 9 | 5,004 | 55,600 | 0.01 |
| Plethora Solutions Holdings * | Dr MG Wyllie | 01 Nov 13 | 333,500 | 9 | 30,015 | 1,353,327 | 0.34 |
| PuriCore | Daniel Hegglin | 31 Oct 13 | 1,000,000 | 45 | 450,000 | 4,909,091 | 9.79 |
| Regenersis | Rob Woodward | 04 Nov 13 | 4,459 | 269.25 | 12,006 | 4,459 | 0.01 |
| Regenersis † | Matthew Peacock (ch) | 31 Oct 13 | 40,000 | 256 | 102,400 | 10,826,637 | 22.42 |
| Regenersis † | Tom Russell | 31 Oct 13 | 40,000 | 256 | 102,400 | 10,826,637 | 22.42 |
| Ryanair Holdings | Richard Milliken | 06 Nov 13 | 10,000 | 566 | 56,600 | 10,000 | 0.00 |
| Swallowfield | Brendon Hynes (ch) | 05 Nov 13 | 50,000 | 78 | 39,000 | 50,000 | 0.44 |
| Swallowfield | Chris How (ce) | 05 Nov 13 | 40,000 | 78 | 31,200 | 40,000 | 0.35 |
| Swallowfield | Roger McDowell | 05 Nov 13 | 30,000 | 78 | 23,400 | 71,000 | 0.63 |
| Symphony International Hold's | Anil Thadani | 04 Nov 13 | 248,444 | 76 | 188,817 | 51,364,062 | 9.97 |
| Symphony International Hold's | Anil Thadani | 31 Oct 13 | 500,000 | 76 | 380,000 | 51,115,618 | 9.92 |
| Telecity | Claudia Arney | 07 Nov 13 | 7,000 | 674.5 | 47,215 | 7,000 | 0.01 |
| Telecity | Michael Tobin (ce) | 04 Nov 13 | 2,000 | 765 | 15,300 | 670,000 | 0.33 |
| Telecity | Simon Batey | 04 Nov 13 | 10,000 | 754.5 | 75,450 | 16,227 | 0.01 |
| Telecity | Michael Tobin (ce) | 05 Nov 13 | 1,000 | 725 | 7,250 | 671,000 | 0.33 |
| Telecity | Michael Tobin (ce) | 05 Nov 13 | 1,000 | 725 | 7,250 | 672,000 | 0.33 |
| Telecity | Michael Tobin (ce) | 05 Nov 13 | 1,000 | 699.5 | 6,995 | 672,000 | 0.33 |
| Wentworth Resources * | RP McBean (ch) | 31 Oct 13 | 1,370,446 | 40 | 548,178 | 8,903,637 | 6.17 |
| Wentworth Resources * | C Barton | 31 Oct 13 | 154,240 | 40 | 61,696 | 1,530,291 | 1.06 |
| Wentworth Resources * | NB Kelly | 31 Oct 13 | 385,600 | 40 | 154,240 | 912,815 | 0.63 |
SELLS:
| Company | Director | Date | No. of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| AdEPT Telecom | Amanda J Woodruffe | 05 Nov 13 | 25,000 | 130 | 32,500 | 73,209 | 0.33 |
| AdEPT Telecom | Ian Fishwick (ce) | 05 Nov 13 | 300,000 | 130 | 390,000 | 1,486,160 | 6.77 |
| Air Partner | Tony Mack | 04 Nov 13 | 360,067 | 500 | 1,800,335 | 700,000 | 6.82 |
| Andes Energia | David Jackson | 06 Nov 13 | 50,000 | 21 | 10,500 | 1,236,490 | 0.24 |
| BP † | C Svanberg (ch) | 01 Nov 13 | 154,821 | 484.75 | 750,495 | 871,799 | 0.00 |
| Camco Clean Energy | Dr Jeffrey Kenna (ch) | 05 Nov 13 | 2,041,933 | 6.79 | 138,647 | 2,037,830 | 0.98 |
| Glanbia | Michael Keane | 01 Nov 13 | 6,136 | 1,031 | 63,262 | 30,770 | 0.01 |
| Hardy Oil & Gas | Yogeshwar Sharma | 04 Nov 13 | 500,000 | 100 | 500,000 | 2,662,438 | 3.64 |
| Informa † | Peter Rigby (ce) | 31 Oct 13 | 4,000 | 555 | 22,200 | 247,229 | 0.04 |
| RPS | Dr Phil Williams | 05 Nov 13 | 100,000 | 289.5 | 289,500 | 318,439 | 0.14 |
| Telecity | Brian McArthur-Muscroft (fd) | 04 Nov 13 | 95,926 | 768.7 | 737,383 | 6,500 | 0.00 |
| Telecity † | Brian McArthur-Muscroft (fd) | 04 Nov 13 | 6,500 | 768.7 | 49,966 | 0 | 0.00 |
*Placing †Spouse/connected party
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
