News about the management raising its ownership in a company usually comes as a significant boost to a stock and that is what seemed to have happened with the PHI Group (OTCMKTS:PHIL) stock yesterday. After the company made such an announcement, the stock flew and ended the day with gains of as much as 13%.
However, at the same time, it should also be noted that the PHI Group stock had been rallying in the preceding days as well and has clocked gains of 55% over the past week. The company announced yesterday that the management raised its stock ownership in PHI Group significantly and it might be a good move to take a look at the details.
It was announced that on August 25, the Chief Executive Officer of PHI Group turned as much as $550000 of unpaid and accrued salaries from 9/30/2004 up until 3/31/2004 into as many as 11,4672,922 shares of the restricted common stock.
However, that was not all. The Corporate Secretary and Treasurer in the company, Tina Phan, also did a similar thing with unpaid and accrued salaries to the tune of $217,500 for the same period. She converted it to 4,5347,928 shares of the restricted common stock in PHI Group.