Citicore Renewable Energy [CREC 2.70 unch; 25% avgVol] [link] disclosed that its President and CEO, Oliver Tan, purchased ~4.4 million shares of CREC last week at an average price of P2.61/share, for a total spend of P11.5 million. Mr. Tan bought the shares across 29 transactions ranging in price from a low of P2.47/share to a high of P2.69/share. The buying spree effectively doubled Mr. Tan’s indirect ownership of CREC to approximately 0.1% of CREC’s outstanding shares.
MB bottom-line: Mr. Tan is basically picking up where the stabilization fund left off. The stab fund expired on July 7, and the first day of CREC trading without its support saw the stock’s price tank 5%. He soaked up over 34% of all the shares sold last week and is almost single-handedly responsible for pushing the stock back up to its P2.70/share IPO offer price. CREC has plenty of public float available for Mr. Tan to continue to perform this unofficial stab fund role, but will the market pick up the slack before he runs out of his own personal runway to do so? Things calmed down a lot toward the end of last week, so perhaps the heavy lifting is done. We’ll have to wait and see.
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