Blue Label Telecoms Execs Gave The Stock A R3 Million Vote Of Confidence

e company's latest annual report, Nestadt revealed reasons why Blue Label Telecoms' shares have been tanking.

Blue Label Telecoms.
Blue Label Telecoms. Image source: Blue Label Annual report

Blue Label Telecoms’ chairman Larry Nestadt and independent non-executive director Joe Mthimunye together bought more than R3 million worth of shares on Thursday afternoon, after the stock has dropped more than 63.7 % year-to-date.

Today’s buying may be an attempt by the two top executives to shift this latest news cycle and bring confidence in the business.

Mthimunye acquired shared valued at R474, 3333. He is the member of Blue Label Telecoms’ Investment Committee, Audit, Risk and Compliance Committee, and of the Remuneration and Nomination Committee.

Nesdadt bought shares in the open market valued at more than R2,7 million. He joined the Blue Label Telecoms board upon its foundation in 2007. He is a co-founder and former executive director of Investec Bank Limited.

He has assisted in the creation and strategic development of a number of listed companies such as Capital Alliance Holdings, Super Group, Hosken Consolidated Investments, SIB Holdings, and Global Capital. He has served as board chair for each of these companies.

In the company’s latest annual report, Nestadt revealed reasons why Blue Label Telecoms’ shares have been tanking.

The stock has lost more than two-thirds of its value in the past year.

“The board and I are naturally concerned about the decline in the share price, which we believe is largely attributable to uncertainty with respect to Cell C’s turnaround strategy, current debt levels and requirements for further funding,” Nestadt wrote in the company’s annual report.

“These concerns will be largely negated on the proviso that Cell C delivers on its business plan.”

The stock was trading up 0.37% at R5,44 after the news of Nesdadt and Mthimunye’s acquisition of shares.

For more read: Why Blue Label Telecoms Shares Are Tanking: Chairman Larry Nestadt


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