Insider: Police investigate dodgy deals

Weak foundations at Barratt Developments 

Barratt Developments has been in the thick of it lately. The shares are down 17% in the past three weeks, partly as a reaction to "hard" Brexit talk, but there are company specific issues, too.

The housebuilder this month suspended Alastair Baird, its regional managing director for London, after both he and a former colleague were arrested by the Metropolitan police following allegations they took cash in return for awarding supply contracts.

"Based on the investigation to date, Barratt does not anticipate any material adverse financial effect," the company said. It will also be desperate to limit reputational damage here.

Nerves around a sharp economic slowdown next year, and possible recession in 2017, have also damaged confidence in many domestic plays. Barratt went ex-dividend Thursday, but a 12.3p payout does not explain an 8% plunge in the share price.

There was selling among top brass, too, although shareholders should read little into it. Both chief executive David Thomas and chief operating officer Steven Boyes sold over 158,000 shares each at 471p to cover tax liabilities after share and bonus schemes, worth £1.6 million individually, vested.

On a more cheerful note, chairman John Allan has just bought 20,000 shares at 484p, and non-executive director Richard Akers added 10,000 at less than 482p.

A week ago, with the shares at around 484p and despite looking inexpensive on traditional valuation multiples, we suggested "a substantial rally…appears unlikely right now". Next technical support could kick in at around 408p.

Outgoing Glaxo chief sells

After years of heavy criticism, GlaxoSmithKline chief executive Andrew Witty handed in his notice last month. He's been accused of mishandling the business, and not listening to calls from activist shareholders like Neil Woodford to break up the company. He'll hand over to Emma Walmsley, who currently runs the Sensodyne toothpaste consumer healthcare division, in March next year.

However, after surging by as much as 21% since the Brexit vote, as investors chase high-yielding overseas earners, Witty is cashing in some of his chips. At Glaxo for more than 30 years, eight of those as CEO, he's has just sold 10,000 shares at 1,636.5p.

The sale came after the drugs giant published third-quarter results Wednesday, showing third-quarter core earnings per share (EPS) of 32p, up 12% at constant currency and way above consensus estimates. Revenue at £7.5 billion and £2.3 billion of operating profit also beat forecasts.

"We are confident in achieving our earnings guidance for the year for core EPS growth of 11-12% on a [constant currency] basis," said Witty, declaring a 19p quarterly dividend and reaffirming expectations of 80p for both 2016 and 2017.

The benefit of translating sales made in a strong dollar back into a weak sterling mean likely reported full-year EPS growth rises from 19% to 21%, according to broker UBS, which rates the shares 'neutral' with 1,650p price target.

Tellingly, chairman Sir Philip Hampton bought 2,662 Glaxo shares at 1,643p straight after the results.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.