Airway’s ratings rose this morning, but after the announcement the green turned to red / Bankier.pl—
The announcement caused euphoria. The valuation of the shares began to rise rapidly to over PLN 3 on Wednesday. There were regular problems with balancing the rate due to the shortage of orders on the supply side, however, slow declines began on Wednesday. The company ended this session with record-breaking turnover in its history.
Should the behavior of Airway board representatives be condemned? A board member has the right to sell shares and cannot be taken away from him. Controversy, however, is the fact that it happened after the publication of the announcement that triggered a sharp jump in Airway Medix’s ratings. The sold package shows, in a sense, the management’s lack of faith that the scale of the potential success will match the jump in the valuation. Let us recall that the members of the management board have more knowledge about the company than individual investors, and they also have wider access to information. Suddenly, not one person from the board is selling the shares, but two.
The problem with the closed period
Another fact is also fueling the controversy. On Wednesday, August 19, Airway Medix announced that the report for the second quarter was postponed from September 18 to September 30 (last possible date). This issue is important not only because of the quick access to information by individual investors (they will later learn the report), but also from the point of view of “insiders” transactions. Why?
Well, before 30 days before the publication of the periodic report, the so-called a closed period in which members of supervisory boards and management boards cannot sell the company’s shares (there is a suspicion that they already know the shape of the results that will be published yet). If Airway stuck to the old report publication date, the closed period would just start and prevent management from trading stocks (we wrote about it yesterday).
Of course, the above sounds a bit like a conspiracy theory, but it is not an impossible scenario, the more so that as you can see, the management board is willing to use the recent gains to sell shares. Sale of securities by Aranowska-Bablok and the company associated with the president sheds new light on the fact that the publication of the report has been postponed and makes this scenario even more worth paying attention to. Investors must be aware that the market may receive further messages about the sale of blocks of shares by “insiders”.
It is also worth adding that this is not the first situation in recent times when the management board used the price increases to sell shares. The most glaring is perhaps 4mass, which after a violent rally recorded a sudden crash, in which she helped, among others sale of large blocks of shares by “insiders”. We have dealt with trade from “insiders” several times also on Biomed.
Adam Torchała
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