UK 21:27 Saturday, 7 November 2026
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Yesterday I wondered aloud whether Optimal Payments (OPAY) was going to be the sixth company in the EFH scandal. I was right on the money. The shares fell pretty much through the day, dropping 22% at the close – yet there was no news. All day long. Then after the market had closed, at twenty-one minutes past five GMT on Friday evening (no-one is watching o’clock, local time) out came this statement:
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Comments
sp1234
So, if Mr Leonoff considers that he has not sold his shares, and Canaccord as Nominated Advisor agree that he has not sold shares, will both be guilty of denying HMRC tax due on disposal, as well as misleading the market?
Maybe it actually a valid scheme for disposal of shares without the inconvenience of taxation?
Chris
The RNS for the pledge was actually at 10.12 & the buy ay 17.06 so the 6 minutes comment is not strictly accurate, the 17.00 RNS being just a correction of awards remaining. Also, unlike the other companies mentioned in other articles, the pledge was not trumpeted as a director buy (although I appreciate this is not a major positive!).
nigel somerville
Chris – fair cop, guilty as charged guv! Same day, though. And the Dir buy still gives a misleading impression unless and until OPAY give full disclosure. That’s all that is needed. And the lack of it suggests there is something to hide. Easy to sort…
SP – interesting angle. Presume if default sees Mr Leonoff walks (either forced by EFH or by choice) away from the deal that becomes academic.
Stuart Turner
Selling a stock without full possession of the facts is always dangerous in my opinion. Share Prophets have presented one view here and the stock has already priced in a worst case scenario, the CEO’s exit. However, the market is not in full possession of the facts. I will await a clearer picture to emerge. The short term investors who sold on Friday might be looking mighty silly if this proves to be a mountain made of a molehill. The stock is trading at 9x ’16 earnings, whilst earnings are growing at 25-30% p.a., the company generates excellent cashflow and the earnings upgrade cycle continues. Stick with the main game here…
sp1234
As far as I’m aware, a sale and repurchase agreement (as provided by EFH) crystallises a gain or loss for tax purposes. Whether the director later walks away is irrelevant, as that’s a decision not to exercise his repurchase option. He surely sold the shares and crystalised the taxable gain when the equity was transferred to the lender. It is therefore (IMO) categorically a sale in the eyes of HMRC, and can’t be described otherwise in a director holding RNS.
Phil
Stuart
I completely disagree.
Holding a stock without full possession of the facts is always dangerous in my opinion
OPAY is a sell