Yea it's nice to see directors supporting the company with share purchases. Just I would be more impressed if they don't give themselves some 20m of them a year, pretty much every year.
MYX is quite a weak company. It hasn't been any good for shareholders really. That's if you count shareholders as a single entity. I mean there are those lucky shareholders who got in earlier at lower share prices so they're doing well in terms of capital gains.
But shareholder wealth, the money they contributed towards the company pretty much each and every year or two... shareholders just hand over too much money with little or nothing to show for it. Not on the retained earning or dividend side of things.
It's been about 7 years since Mayne became Mayne... it only paid two dividends, totals 3 cents a share, in 2010 and 2011. Since then it's been all about "growth" and expansion... raising more money, borrowing more cash.
That's a sign of a terrible business. Or one badly managed.
Remember that they're a generic drug company. They're not pioneers and such. So a well managed generic operations ought to make money hand over fist... with the proceeds paid as dividends and retained for further expansion. With perhaps the occasional need to dip back into shareholders' pocket for greater opportunities.
That hasn't been the case. It might be in the future with Teva and Allergran... Though I doubt that too.
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See the black bar? That's contributed equity. The Green is retained earning... Shareholders kept handing over more money for expansion yet earnings hasn't brought the bang back for their bucks.
Compare that to Hikma... and London listed generic drug company...
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If you want we can discuss Hikma's purchase of a US generic portfolio from some European company I can't remember... but they bought Roxane Laboratories on a much smarter, more promising and to my mind a lot cheaper than what Mayne has done with Teva/Allergran. It does illustrate the calibre of management at companies like Hikma as opposed to Mayne's.
Here's another example of companies with "growth" and "expansion" on the mind... but does it with capital raising and debt...
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While it's impossible to say, somewhat difficult to predict precisely anyway... how these companies will last because they can last as long as shareholders keep the faith... but real quality business, the kind that make money for shareholders, build their wealth, paid dividends from earnings and grow that equity from retained earnings... they don't look like Mayne's.
Here's WalMart's history of shareholder wealth...
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(20min delay)