I bought these shares after Paul's short write up about 12 months ago since when the price has doubled. Today however the SP is down 10% because as I read it a major shareholder has gone bankrupt (owning 21% of the company's shares) . A subsequent RNS was issued one minute later showing that the trustee has sold 100,000 shares. As a shareholder I can only hope for an orderly sale of the stock or a placing.
Does anyone else own these shares? I should like to continue to hold as the company issued a strong trading up date recently. Does anyone have experience of this type of event and the effect it can have on small shareholders?
Views would be welcomed.
SP recovers somewhat. Ends day down 7.4%
Hi Brileen, I had missed that (I am also a holder), I wondered what had caused such dramatic price moves in the stock on Friday. Thanks for highlighting it.
I guess a positive point could be a distressed seller would mean an opportunity to pick up shares at a lower price, which is not a result of fundamental changes - an investors dream scenario!
I would imagine they would try to sell it as a block to someone else initially or to the other major shareholders. 21% means this person had quite a substantial amount of voting rights, I wonder what this means for corporate governance at the company? Negative if for example that individual had a positive impact at the firm.
