Doesnt matter whether Ron Gajeweski has withheld 1/2 the information or all of the information, insiders has benefited from the information withheld to sell down on their shares prior to the announcement as depicted by the company's falling SP prior to the announcement.
From a simple google of his name, I noted that a similar situation happen in the past (please refer below). Do you think that this is a coincidence that something like this has happen in the past?
What I have learnt from this is that if you chose to invest in a speculative share, SP is at the mercy of management. And if you have have a corrupt management that benefit from inside information, what chance has an outsider has against management. DYOR but for me, I will stay clear of Ron Gajeweski.
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Citrofresh directors profit from share spike By Jamie Freed October 6, 2005
Two directors of Citrofresh, the company that last week announced its product could prevent HIV, took advantage of the share price spike to sell large parcels of stock.
The Geelong company's share price more than tripled on Tuesday last week after it released research to the stock exchange claiming its orange-based compound could prevent the spread of HIV and other viruses.
The stock rose from 22c to a 70c peak shortly after the announcement, which was later queried by the stock exchange. Day traders snapped up shares after the company revealed men could use its organic spray after intercourse to avoid contracting sexually transmitted diseases.
Chief executive Ravi Narain asked the ASX to halt trading that day pending the release of laboratory trial information.
By that time, the shares had fallen to 53.5c. But non-executive director Mathew Walker and non-executive chairman Ron Gajewski had already offloaded large parcels of shares.
Mr Walker sold all his shares at 57.7c each, picking up $577,000 in the process. Vienna Holdings, a company associated with Mr Gajewski, sold 500,000 shares at 56.2c each. Before Tuesday last week, Citrofresh shares had not traded above 56c since 2001. AdvertisementAdvertisement
On Wednesday last week, the ASX queried the company about the claims made in the announcement on the Tuesday, asking it to confirm whether it was a vaccine or a cure for HIV.
The following day Citrofresh, which produces a disinfectant, duly confirmed its product was not a vaccine or cure and the stock fell to close at 35.5c and has since slipped to 30.5c.
Mr Walker, the founder of Perth boutique investment bank Delta Capital, said last night that the timing of his share trading was proper. "The appropriate time for directors to sell shares is after a notice, not before the notice," he said, referring to the announcement on Tuesday last week.
Mr Walker declined to state his reasons for selling a one million shareholding that particular day, saying "that's a little bit personal".
"Be very careful how you write this [story]," he told the Herald.
The Australian Securities and Investments Commission would not comment on whether it was investigating his share sale timing.
Mr Gajewski, who also chairs Contact Resources, was on annual leave and could not be reached for comment last night.
Mr Narain, CEO, told the Herald last night he did not sell shares last week and had not sold any since the company was formed.
Mr Narain said Citrofresh's board did not intend to manipulate the market with its Tuesday announcement.
"You can't hold the company responsible for the way the market took it," he said. "Day traders didn't read the announcement properly or correctly. It's not my fault. I don't retract any claims in the announcement."
ANL Price at posting:
8.7¢ Sentiment: LT Sell Disclosure: Not Held
(20min delay)