The Insider: City deals uncovered

Has Betfair seller called top of the market?

Betfair's Alexander Gersh could be an insider to follow. In January 2013, the online gaming operator's finance director bought 20,000 Betfair shares at 657p, near the bottom of the market. He's just sold them for 1,460p, netting a £160,000 profit.

The sale came four days after the company released record half-year results and confirmed a £200 million return of capital to shareholders. In fact, the numbers sent Betfair shares to a record high and past 1,500p for the first time.

We were impressed with Betfair's second-quarter numbers published in November and suggested the share price - then 1,248p - could go higher.

Half-year revenue grew by 26% to £237.6 million, cash profit jumped by 51% to £73.9 million and underlying pre-tax profit rocketed 87% to £60.9 million. Betfair now thinks it will make a £97-£103 million cash profit for the 12 months.

Ithaca pair pick up bargain

Ithaca Energy has had a year to forget. In October, the oil and gas company warned that full-year production would miss forecasts and a month later said first production from the Stella platform could be delayed by a couple of months. The oil price has collapse, too. So has the share price. Trading above 150p during the summer, they have since plunged by two-thirds to a five-year low. But that's too low for top brass who have piled in at current levels.

Chief executive Les Thomas and chairman Jack Lee have each spent £120,000 on 200,000 Ithaca shares at 61p, a month after Lee bought 100,000 common shares at C$1.40 (78p). Certainly, the City thinks that's cheap. Investec Securities reckons they're worth 135p and Westhouse 190p.

Last month's third-quarter update was decent enough on an operational level, and management is how it's coping with weak oil prices. "It is important to note that the company is in a strong financial position, with all debt covenants satisfied and future revenues substantially underpinned by the significant quantity of oil price hedges that have been executed well in excess of prevailing prices," says finance boss Graham Forbes.

And Ithaca does have substantial oil hedging in place which, it says “provides significant downside price protection through to mid-2016. The company has 6,300 barrels of oil per day hedged at an average of $102 a barrel until 30 June 2016. Says Investec:

Its hedging programme protects the company through its peak net-debt and supports its low cash flow breakeven level of approximately $40/bl over the long-term, nearly 50% lower than the current oil price. Buy retained.

Aberdeen Asset man bets on breakout

Aberdeen Asset Management has had a terrific recovery since the rapid turnaround which followed the financial crisis. But that momentum stalled in summer 2013 and the shares have been rangebound since - 350-450p. But on man in the know thinks a breakout is on.

Simon Troughton, on the Aberdeen board since 2009 and senior independent director since October, has snapped up 20,000 shares at 462p apiece. He must have some conviction to have laid out over £92,000.

The purchase came just a week after Aberdeen reported a 4% increase in net revenue and 2% rise in underlying pre-tax profit to £490 million. There's a double-digit jump in the dividend, too. A forward price/earnings ratio of 13 seems decent value.

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.