Pete Wargent blogspot

PERSONAL/BUSINESS COACH | PROPERTY BUYER | ANALYST

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Friday 12 May 2017

Ugly Vita, beta splayed

Touchdown

I haven't done any Monday morning quarterbacking for at least a couple of weeks, which is remiss of me.

Following on from the themes of Vocus and Sirtex, this time Vita Group (ASX: VTG) has crashed by another 30.5 per cent following yesterday's update on trading conditions. 

Shareholders have now experienced almost a 72 per cent drawdown from the 52-week high. 

Some shareholders had expressed concerns that the CEO's selldown might presage a falling share price. 

In March last year the CEO finally cashed in 15 million shares of her stake for a hard-earned $42 million payday (while still retaining a very substantial 39 million shares, it should be said) - and then in August another 4 million shares were disposed. 


Source: ASX

A remarkable success story, the CEO had founded the group almost two decades earlier with just one solitary store.

A 70-plus per cent drawdown following key management personnel selling of shares echoes the Vocus story quite closely.