Anyone want to take a guess what LDN considers to be the fair price for BRN shares now?
We can take a somewhat educated guess of what LDN considered as being fair (or overvalued) 2 years ago? LDN, the CEO (who would know more about BRN more than anyone here) that preferred to sell his BRN shares, to cover his personal tax obligations?
If LDN thought BRN shares were undervalued at around 10 cents, surely he would have eagerly paid, out of his own pocket, his own tax obligations, rather than disposing of 4,188,020 Ordinary Shares on to the market, all at once, on a single day?
All I can surmise from this seemingly careless action is, that, at least at that point in time, LDN potentially believed BRN shares to be either of fair value, or overvalued, at around 10 cents, as of the 20th December 2018? Paying out of his own pocket would have allowed LDN to accumulate and hold on to more BRN shares? Through action/inaction, he chose against this?
For whatever reason, LDN consciously decided against paying for his own tax obligation with his own coin, with the resulting action (that IMO, LDN, should have foresaw, as CEO) completely obliterating the long term historical share price support of around 11 cents?
Raising further capital, after this event, at lower share prices, ensured further dilution of capital for shareholders and provided less to show for it? Something seemed off, the market responded in kind, with the share price taking well over a year to recover from this action?
This disposal never sat well with me. It was a chance for LDN to put his own coin in? To send a signal to prove he truly believed? Shareholders paid LDN well enough for him to be able to pay for part of that tax obligations (allowing him to hold more shares), surely? That would have sent a bullish sign to the market, if he had done so, if not in full, then at least in part?
LDN is paid decently? In 2018, LDN was paid ~US$420,000 in salary, fees and annual leave?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)