Bill Beament is accustomed to getting his own way. He will do everything in his power to get what he wants, allegedly using his insider knowledge to his personal advantage, putting his own vested interests ahead of others. He lacks transparency, which leaves investors with feelings of uncertainty.
Over the past 2 years, Northern Star’s Executive Chairman has decreased his holdings by over 70% from 10,589,712 shares down to 3,141,793 as announced in an ASX report on June 2019. Beament’s massive inside share selling makes investors and shareholders question his motives and credibility. Beament is privy to the company’s confidential information and has been selling in a soaring market, leaving shareholders to speculate on the real value of Northern Star (NST).
Beament’s questionable reasons for selling
As announced on the ASX, Beament has sold down proportions of his holdings in Northern Star. What are the underlying reasons for his sell-offs?
Beament side-steps all opportunities to explain why he has been slowly drip-feeding his holdings to the market. This is a contrived and planned strategy recognising NST’s share prices are sustainable. ASIC and others will be closely watching this insider sell-off.
Beament’s massive inside selling unsettles shareholders
Beament’s overwhelming reduction in his holdings, increasing costs, falling resources, and poor business acumen may create panic with shareholders, causing them to dump stock and push the value of their shares down further.
There are rumours that major shareholders are about to offload their holdings in NST because they are fed up of his deceptive conduct and reckless style. We expect more shareholders to follow suit as the market capitalism of NST faces a massive correction to around 30% of today’s value.
NST’s Executive Chairman needs to be more transparent and announce to his shareholders his true motives. As he continues with his present autocratic style the market is tiring of him. It’s time for Mr Beament to go and NST to implement a top-level review of their management team. A proactive approach may mitigate the present lack of transparency and mitigate the market slaughter that is inevitably about to flow.