After a failed attempt to offload $100 million worth of shares on Tuesday, Kogan’s share price has continued to fall, with commentators saying the businesses directors are treating shareholders like “wood ducks”.
Share prices at Kogan.com have been up and down over the past few days, with stock prices jumping 7.5 percent when the business announced its plan to tackle the likes of Harvey Norman by entering the whitegoods market, only to plummet the following morning when news leaked of a botched sale.
When the market opened on Tuesday morning, share prices had fallen 8.6 percent after directors, Ruslan Kogan and David Shafer, tried to sell approximately 10 percent of their stake in the company (11 million shares) overnight.
According to reports, Kogan and Shafer were unable to find a buyer willing to pay what they were asking, with the company advising in an ASX announcement on Tuesday afternoon that the duo “did not receive a bid that was acceptable to them”.
Since news of the failed sale attempt broke, commentators have been quick to respond, with one Twitter user claiming Kogan and Shafer’s actions don’t follow “best practice”, and another saying it was a low blow for investors, as the two directors were treating them like “wood ducks”.
The stock price has reflected these opinions, with the stocks continuing to plummet over the course of the day, to a 12.5 percent decrease at closing. As of 9:16 am on Thursday, the stock price was worth $8.25, reversing the positive momentum gained from the company’s earlier whitegoods announcement.
Kogan.com is also receiving criticism, as it’s not the first time the directors have tried to bury a sale under a big announcement that’s driven the stock price up. In October 2017, the company unveiled its Christmas sales plan, only to follow the announcement less than a day later by Kogan and Shafer offloading a combined $22 million in shares, a move that also caused the share price to plunge.
The only positive for investors at the moment is that shares in Kogan.com shares are still trading a lot higher than their underwhelming debut on the ASX for as low as $1.50 back in 2016.