Loss of trust reflected in the share price, page-111

Well this is a nice positive move by Forager (since my post 2 weeks ago).

IMHO this is a blocking stake that holds the balance of power. What does it mean?

1. Average down (to ~50c) granted, a long, high-conviction fund is seeing compelling value here at this price, and so happy to soak up any insider/fundie exiting the register (go get that new car/boat/house and becoming an employee instead of a part business owner).

2. Owning more than 10% of the company generally means one can influence the direction of the business via the CEO and the board. Forager have done so in recent years with MAH, JIN and SSM with positive results.

3. A blocking stake deters any opportunistic low-ball offer taking advantage of the recent price weakness.

All that being said, IMHO the near-term price weakness wouldn't be going away just yet until there is positive news flow (e.g. H2 showing that FIG is indeed back to normal sales run-rate and sustained margins, positive signs from organic growth); meantime long-termers could be looking to continue engineer low price to (1) force the hands of the rest of the escrow insiders or impatient holders to fold (2) continue accumulation whilst the trail commission "piggy" grows everyday.