The success rate of an individual or a company without the confidence of its Directors is very low. Bill Beament has sold 70% of his holdings in Northern Star over the past 2 years. Why does he have no confidence in his own Perth-based gold mining company? Beament’s continued sell down, with no end in sight will lead to other shareholders selling down their shares.
Beament’s holdings nosedive
As reported in an ASX Notice in June 2019, Bill Beament recently sold 3,141,795 of his holdings causing unease among his partners, employees, and Northern Star’s shareholders. Since 2017, he has reduced his holdings by 70%, from 10,589,712 shares to 3,141,793.
Excessive insider selling unsettles investors and shareholders. Management and key employees in the company are privy to confidential information. Corporate insiders know the inner workings of their companies so if they are selling down their shares aggressively you can rightfully assume they are cashing out early with a share price fall to follow.
Has Beament foreseen major loss in the value of Northern Star? Beament, with his insider information, puts other investors and shareholders at a disadvantage because they are not privy to fiscal information likely to affect their investments.
Excessive sale of shares from Beament sends a negative message
Beament’s massive insider sales send a message that makes investors and shareholders question his reliability and credibility as Northern Star’s Executive Chairman. He undermines public trust in the company by selling down over 70% of his holdings with insider information.
What’s worse is when corporate insiders, like Bill Beament, publicly promoting the company while privately selling a huge proportion of their shares. If Beament won’t back himself up, why should you? Why should you trust your investments with Beament and his gold mining company? It is about time to sell down shares in Northern Star and seek better investment opportunities.