A lot of speculation going on in this thread, much of it lacking any basis.
What are the facts?- Aaryn Nania, acting CEO sold 100m of his 160m shares for approx $3m at average price of 2.9c. To clarify though, the shares are owned through Lucerne.
- Aaryn is a co-founder of Lucerne Investments, which is the company that holds the shares, specifically the money is part of the Principis Master Fund SPC – Lucerne Composite, for which Aaryn is the manager.
- Aaryn was appointed as a non-exec board member Sept 19, 2018. At that time Lucerne held the following interests: 2,000,000 Fully Paid Ordinary Shares (Lucerne Pty Ltd)
180,571,201 Fully Paid Ordinary Shares (Lucerne Composite Master Fund )
- We know that Aaryn has previously profited from trading shares in CXZ e.g. sold at 3.0c and bought back in at 2.3c prior to the current re-rate.
Speculation
- Whilst Aaryn is involved with CXZ and acting as the CEO, he is fundamentally an investor and is responsible for managing the fund of the business which he helped co-found.
- As having interests in ensuring his fund succeeds, if we examine Lucerne more closely, we can see that they are on the conservative side of the current bull-trend after COVID, evident by certain articles on the funds website, such as
"Why the bulls are wrong" .
- It makes perfect sense, that a investment fund takes profits, and de-risks at this point in time when their belief is that the bullish trend is incorrect and the market is about to re-rate. They have a responsibility to their investors after all.
My view:
- The numbers speak more than any qualitative speculation about the future. We can only act on what we know to be true, and what we currently know to be true is that the company is significantly undervalued by the market. There is risk involved of course, largely due to the economic downturn, but I believe the company has been quite transparent about the implications there, and even factoring these implications - and no upside, the company is still undervalued.
IMO, DYOR.
(20min delay)