I'm new to BIN, drawn to the prospect of buying something at half the price it was 2 days ago.
According to management the impact in FY19 is mostly due to short-term factors so it's potentially an attractive medium term buy.
I looked back at September 2018 and Tartak invested $72m at $2.54. That's a good vote of confidence.
However, having been burnt by Allco (AFG) back in the day, do we know how that $72m was funded?
I'm unaware of his personal assets outside of Bingo shares and Googling didn't turn up much. My concern is if the $72m was purchased through a margin loan against his other holdings, and he holds almost 17% of the shares, the recent pummeling would have put him into margin call territory. Furthermore, it gives shorters a strong incentive to keep driving the price down, forcing further calls.
I understand the wider Tartak family has significant assets from their sale during the IPO but it doesn't make a whole lot of sense for them to sell at IPO for $1.80/share, then re-invest at $2.54/share 2 years later.
Anyone know how that $72m was financed?
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