Worrying thought it is, I think the sell-down is being overplayed. Guscic borrowed money from UBS to buy shares at a much higher price than they are now, and has to repay it under terms of the loan. In that light, and on the assumption that he doesn't have millions in cash stashed away to make the repayment, I see the sale as a necessary evil and not a vote of no-confidence in the company he runs.
Where some lack of confidence does show is that he clearly doesn't have faith in the share price recovering any time soon to the price he bought them at, or higher. If he did, I'm sure he would have extended the loan period. But that price is so much higher than today's, it's understandable he doesn't want to hang on.
I think Guscic's strategy is to make good his losses via the share options he'll receive over the next three years, which vest at a very low price, rather than keep paying interest on shares that will be in the red for a long time to come.
WEB Price at posting:
$3.91 Sentiment: Hold Disclosure: Held
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