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First REIT– CEO Dr Ronnie keeps buying shares

Back then I written when First REIT announced their latest quarter results there isn’t much value.

I more or less followed CEO Dr Ronnie to purchase at $1.07 and that was when First REIT announced 2 acquisition.

But turns out Dr Ronnie kept buying even at the price of $1.40.

Not sure if we are reading too much into this but the CEO buying in is always a good thing. This stock certainly do not need a management support and the yield here based on a projected DPU of 7.5 cents isn’t super appealing at 5.3%

So why the purchase. For sure its not going to be a rights issue, since such a move will mean he has the chance to participate in the rights.

At such a high stock price a possibility is a share placement to boost DPU. It may be unlikely since they just bought something not too long ago.

Their leverage is near its limits.

It probably may be that the CEO cannot find a better return asset class to channel his capital into. That will be rather shocking.

Can’t think of other possibility. Perhaps he just like the business.

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Snoopy168

Thursday 9th of May 2013

Perhaps the CEO is having this "regular savings plans" ?

Kyith

Thursday 9th of May 2013

Hey snoopy, the timing a bit inconsistent isn't it

Niubee

Thursday 9th of May 2013

Are you using paid Shareinvestor to see insider buying ?

Kyith

Thursday 9th of May 2013

Hi not so much. Got the figures from the net.

komatineni

Thursday 9th of May 2013

or it could be a simple employee stock option plan or stock purchase plan ;)

Kyith

Thursday 9th of May 2013

If you look at the amount it doesn't seem like that

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