Serinus Energy (LON: SENX) (OTCPK: SNUYF) shares are up 25%. SENX shares are up on two pieces of news, some insider buying and then a stonker of a derivatives bet on the company. The insider buying is a couple of directors adding to their shareholdings: “Serinus Energy plc ("the Company") has been informed that Jeffrey Auld, Chief Executive Officer of the Company, purchased on 17 August 2023 an aggregate of 250,000 Ordinary Shares in the Company at an average price of 2.10 pence per Ordinary Share. Following the purchase, Mr. Auld's total shareholding in the Company comprises 988,875 Ordinary Shares, representing 0.8669% per cent of the Issued Share Capital of the Company.” And then also: “James Causgrove, an Independent Director, purchased on 17 August 2023 an aggregate of 250,000 Ordinary Shares in the Company at an average price of 2.20 pence per Ordinary Share. Following the purchase, Mr. Causgrove's total shareholding in the Company comprises 290,000 Ordinary Shares, representing 0.2542%”
Insider buying is not a perfect signal as it can happen that even directors are wrong about the future direction of the company. However, given the recent performance of the company and the share price we might think that they’ve called the bottom here. As we’ve said before about Serinus Energy: “Of course, being more specific to Serinus this did mean that revenues slumped, profits declined and in general lower output prices did a number on the corporate performance. Which neatly explains both the consistent share price decline over recent months and the slump today. But the point for us to take away from this. Serinus did tell us that the Tunisian wells weren't really connected into the global market (they link into the Italian, but that doesn't then link into Northern Europe) and so weren't getting premium prices, but the Romanian were. We should have been able to predict this decline in performance therefore.”
The point here being that OK, we know the gas price has slumped and so too has the share price. But from this new and lower level, what’s the prognosis? Well, that Serinus will continue to produce gas, sell it at the market price and so be at a fair price again. Maybe.
Serinus Energy share price from Google Finance
The rather more important announcement is of a CFD/Spread betting position: “% of voting rights through financial instruments (total of 8.B 1 + 8.B 2) Resulting situation on the date on which threshold was crossed or reached 8.03%.” That’s a pretty big position. Depends upon the spread being paid there but a position that is likely already in profit.
Someone taking an 8% position is going to move the Serinus share price. Even if it is a speculation rather than a direct purchase.
