Ann: Managing Director Share Sale, page-21

Some consternation today about the CEO selling shares.

As always in these sorts of situations, some context is instructive:

Over the past decade and a half, the founding family sold down twice before today:

1.  In 2016 (at a price of $3.80)... that was a big one: 18.4m shares.
2.  In 2018 (at $7.00) ... 11.1m m shares sold on that occasion

And how did things pan out for shareholders because of those sell-downs (or, more likely, despite them)?

Well, even after today's fall, NCK's share price has risen by a compound average annual rate of 23%pa and 16%pa since those two respective sell-downs.

Moreover, do the maths: despite this latest selling, the value of Scali Consolidated's investment in NCK today is almost the same as it was after the last sale in 2018, namely ~$70m.  Objectively, non-trivial dollars.

So to think that the business is now suddenly going to suffer from management neglect is an outworking of a pretty vivid imagination, I think.

I have little doubt that in the months ahead, no one will talk about today's share sale (just like people have long forgotten the previous ones)

I don't think the sky is going to move an inch, let alone fall on the collective heads of NCK shareholders.

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