Large BUY - ex insider/ ex CSO / new consultant - Dr Tillett

Dr T just bought around a quarter of a million dollars of RAC. Take a moment to let that sink in.

The person that knows Bisantrene better than anyone … former CSO, ex executive director, the one who was still assessing the recent strategy (putting his sentiment as “HOLD”). Now the newly appointed Race consultant (putting his sentiment back to “BUY”), actually just bought another circa $250,000 of RAC to add to his already huge 16m shareholding. Who does this? Is this the actions of a madman or a calculated move by someone in the know, who is extremely confident of the likelihood of outsized returns in the medium to long term.

We don’t need to listen to Dr T or need to know his sentiments on HC because we can just watch his actions in the market. Actions speak louder than words.

There is only ONE reason why insiders buy … they have a very strong positive view of the direction of the sp in the medium to long term. Although Dr T was technically an outsider (an ordinary shareholder) at the time of the recent on market trades, I (and some) still consider him as the ultimate insider. The RAC board didn’t bring him back as consultant without good reason.

I would call this a very well informed, extremely well timed, opportunistic purchase by Dr T at an extremely depressed share price (3 year low sp) at peak fearfulness from the average RAC shareholder. Dr T vs the average RAC investor … it’s a no brainer which one I would bet on.

I am going to call the recent low last week the “Dr T bottom”. Maybe it is also a good time for the rest of us to reconsider our position on RAC … consider topping up or re-entering for those who sold earlier.