The insider: Patisserie Holdings, Alliance Pharma

Patisserie Holdings sell like hot cakes

Investors have gobbled up shares in Patisserie Valerie owner Patisserie Holdings since the upmarket cakes chain floated on AIM at 170p last year. They're currently changing hands for 316p, up 86%, and major shareholders have offloaded a stake to "satisfy specific market demand".

Former Channel 4 chairman and Pizza Express owner Luke Johnson has been the major beneficiary. He's just trousered £12.6 million after selling over 4 million shares at 312p. He'd already bagged £15 million at IPO and his wife Liza more than £8 million.

Johnson, who bought a majority stake in 2006, still owns 38.6 million shares, or 38.6% of the company worth £122 million.

Chief executive Paul May sold 506,000 this week, also at 312p, while finance director Chris Marsh ditched 51,000 and non-executive director James Horler 147,000. The trio now hold stakes of 4.5 million, 465,052 and 147,116 respectively. In all, Risk Capital Partners, the investment vehicle run by Johnson and others, owns 45.4% of the business.

These guys have made a fortune from the business, but they still have substantial stakes which are worth holding onto.

Recent half-year results were better than expected, and broker Cantor Fitzgerald repeated its 'buy' advice and 350p price target. Canaccord Genuity upgraded earnings forecasts and raised its target from 280p to 330p. A chunky forward price/earnings (P/E) ratio of 24 is based on anticipated earnings per share (EPS) growth of 18% for 2016 and 16% in 2017.

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Maiden purchase at Alliance Pharma

AIM-listed Alliance Pharma surged 45% between November and last month. Full-year results in March were in line with expectations, but investors liked growth prospects and chased the shares higher.

But four-month numbers flagged at the recent AGM caused a round of profit taking. "With the shares outperforming the UK market by 21% on a three month view, we lower our rating to Add and update our one-year forward target price to 48p, implying a 14x P/E multiple for 2016E," wrote Numis Securities.

Non-executive director Nigel Clifford clearly thinks the sell-off presents a decent buying opportunity. He's just snapped up 55,696 shares in the Chippenham-based drug developer at 39.5p, and his wife 58,227 at the same price. In all, the Clifford's spent £45,000 on what was their maiden purchase.

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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.