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Westminster Group Insider Dealing ahead of Placing – why are the City Spivs allowed to get away with it?

Tom Winnifrith
Sunday 10 August 2014

Westminster Group (WSG) last Thursday decided to raise just over £1 million in a placing for reasons I understand and believe to make sense. When the calls from its broker SP Angel started to be made the share price was 50p in the middle. That was late Thursday afternoon.

Between 10 am and 11 am on Friday the mid-price fell – on no RNS – to 46p. Perhaps it was just a coincidence? Oh is that the tooth fairy I see dancing in the corner with Father Christmas?

Let us be clear here. Some folks were told about the placing because they were invited to take part and either sold shares themselves or got others to sell shares at 49p and downwards. They did this in the explicit knowledge that they could buy the stock back at a lower level in the placing and of course that selling pushed the price at which the placing too place down, to 40p.

This is insider dealing. 

on ShareProphets | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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