CEO and Chairman of Champion Industries Inc, Marshall Reynolds has increased his stake in the printing/office equipment company by 28% via the purchase of 1.3 million shares at $2.40. The trade, carried out yesterday and announced today is at a full dollar above the current market price. Mr Reynolds last bought stock on 29th June – half a million shares at $1.80, exactly matching the price and combined amount of the disposals made by five of his Co-Directors. At the end of 2009 Reynolds lent the company $3million via a subordinated unsecured promissory note which was scheduled to mature in September 2014. Yesterday the company announced that this note, plus unpaid accrued interest, was exchanged in return for common stock (at $2.40 – the last audited Book Value). The shares have fallen by 36% since their peak in early March. Mr Reynolds now owns a fraction over 60% of the entire company through direct (18.3%) and indirect (42.4%) holdings.
NASDAQ-listed mobile games publisher, Glu Mobile, has been a stellar performer, gaining 280% since the start of 2011 to close at $5.78. Enough, it seems, for one Non Executive Director to cash out of a substantial amount of his holding. Hany Nada joined the company in 2005 but did not start accumulating shares until August 2009. Over the following years he bought five times at prices ranging from $1.00 to $1.10 to accumulate a total of 3 million shares. This figure was topped up in June 2011 by the exercise of 1 million options at $1.50. However, Mr Nada had already started cashing in by then at prices in excess of $5.00 per share. Yesterday the company announced his ninth share disposal since 27th May, that of 356,000 shares at $5.71. This is the highest price he has achieved to date and took his residual shareholding down 88% to a negligible 48,000 shares.