Market insiders have already foreseen that as soon as Bill Beament started selling down his holdings in Northern Star Resources, investors will begin to question Beament’s motives and oppressive style, and eventually pull out of their investments. It was only a matter of time before more shareholders started selling down their investments in Northern Star.
Beament’s sell-downs cause unease
Bill Beament made the biggest insider sale in 2018. He cashed out 1 million shares on December 2017 worth an estimated $5.94 million and made a 1 million share sale on December 2018 worth $9.1 million. This was the same day Beament made a $150 million bid for Tribune Resources and Rand Mining’s 49% stake in the East Kundana Joint Venture which was unanimously rejected as a gross undervaluation by Northern Star’s partners.
Beament’s sell-downs are causing uncertainty and unease. Will there be further sell-downs from Beament? Shareholders and investors are unnerved and selling down their holdings may be the best option for them.
Shareholders may lose confidence in the long term prospects of the company, and this will arguably reflect negatively on Beament and Northern Star’s reputation, especially when share prices decline.
Major shareholder to pull out holdings
It is rumoured along St. Georges Terrace, Perth’s financial strip, that a major shareholder in Northern Star has had enough of Bill Beament’s reckless style and forecasts a substantive fall in their share price.
The major shareholder has been in talks to off-load their holdings at a discount of 25% off-market. They have every valid reason to sell-off their holdings in Northern Star even at a discount because of increasing costs and managerial issues. Beament should be held accountable for shareholders reducing their holdings.
Since 2017, Bill Beament’s holdings have been reduced from 10,589,712 shares to 3,141,793 — a sell-off of over 70% of his holding. Beament sells into a rising market, the question is, why? The reasonable conclusion is that the captain is deserting his ship with insider knowledge. Good for him, but a lack of transparency and arguably a breach of fiduciary duty to his shareholders in the long term.