What happens when Northern Star’s share price goes into free fall because of increasing costs, falling reserves, and bad management decisions from Bill Beament? Our forecast is that a massive sell-off of Northern Star (NST) will happen as shareholders seek to salvage profits or mitigate their losses.
It is rumoured that one of the top 20 shareholders in NST is about to shake up the composition of the Perth-based gold miner’s share registry by selling off-market.
At a recent New York roadshow, top shareholders sought suitors to purchase their stock at a significant reduction on the prevailing market price. Market experts have already foreseen that as soon as Beament began to sell down his NST holdings, investors will start to question his credibility and motives, and eventually offload their investments.
Watch this space as we delve into the causes of why NST’s major shareholders want out:
Rumours and allegations against Beament
Market insiders have seen right through Beament’s guise. Behind his “squeaky clean” persona, is an opportunistic leader who exploits his insider knowledge as NST’s Executive Chairman.
Rumours that Beament has been meeting some ‘colourful’ associates planning new ‘ventures’, related to his questionable recreational indulgences continue to circulate.
Allegations against Beament regarding his personal issues and instability as NST’s leader unsettle shareholders, leading to a massive sell-off.
Overcapitalised NST with forecasted substantial falls
Beament is cashing out knowing NST is heavily overcapitalised. It is forecasted that NST’s share price will decrease up to 70% in value because of falling resources, rising costs, and Beament’s poor judgment decisions. The overcapitalised price of Beament’s NST is unsettling shareholders. Investors will be quick to offload their NST holdings.
Bill Beament has offloaded over 70% of his shareholding over the past two years, from 10,589,712 shares to 3,141,793. Beament massive selling in a rising market gives rise to doubt as the captain deserts his ship.