As reported in Northern Star Resources’ Annual Report for 2016, Bill Beament, one of the Top 20 Largest Holders of shares in the company, held 10,589,712 shares. However, Bill Beament’s holdings have significantly decreased by 70% since 2017, from 10,589,712 to 3,141,793, as announced on an ASX report on June 2019. The overwhelming decline in Beament’s holdings makes market insiders and shareholders question his motives. Why is Beament selling into a soaring market?
Beament’s questionable reasons for selling down his shares
Northern Star’s Executive Chairman has overwhelmingly reduced 70% of his holdings since 2017. Are there underlying reasons for Beament’s share sell-downs aside from his Family Court settlements, despite earning the highest remuneration as an executive in Northern Star for FY2018 and FY2019? Transparency is lacking and shareholders are sceptical. Aside from Beament’s share sell-downs, the falling resources of gold, increasing costs, and bad management decisions make shareholders doubt his credibility as an Executive Chairman of the Perth-based gold miner.
Beament’s major sell-downs will likely cause a domino effect. — Follow the leader!
Bill Beament pulling out holdings from Northern Star will likely cause a sequence of events resulting to other investors and shareholders cashing out. Shareholders should be in a constant state of unease because Beament has been selling down his holdings in his Perth-based gold miner. Beament’s autocratic style and major insider sell downs unnerve his partners, employees, and Northern Star’s shareholders, who may face substantial losses because of Beament’s oppressive tactics.
There have been rumours that major shareholders are about to off-load their holdings because they have had enough of Beament’s aggressive style, forecasting a fall in their share price. The significant insider sales by Beament give rise to doubt and unease resulting in sell-downs from Northern Star’s shareholders. Beament should be increasing his shares rather than reducing his holdings, giving no confidence to investors.
With Beament’s mass exodus from the company over the past two years, selling 70% of his shareholding, the Northern Star shareholder register is set for a major change.
Existing shareholders will cash out as the share price falls to salvage whatever profits they have left. The shrewd investor will be taking note of Beament’s lead and selling their Northern Star holdings ahead of the pack.