One of the big pieces of ASX news last week was the fate of the Bravura Solutions Ltd (ASX: BVS) share price. The All Ordinaries Index (ASX: XAO) had a decent, if wild, time last week. But All Ords share Bravura had a real clanger.
On Thursday, this All Ords financial technology company lost a staggering 52.3% of its value in a single trading session.
As we covered at the time, the catalyst for this precipitous drop in value was the disappointing update Bravura released after market close on Wednesday.
This told investors that, after a review, the company needed to be "reconfigured":
The review has indicated that whilst Bravura has solid foundations, the business will be required to be reconfigured to scale our products across customers.
This will require enhancing the existing technology stack to unlock the existing microservices strategy, drive higher resale multiples on technology development and reduce single customer efforts.
Bravura also sharply downgraded its FY2023 guidance and flagged that it was likely to book a loss on the bottom line.
Investors were not impressed, needless to say.
Bravura director buys the dip
But one insider appears to welcome this massive share price collapse for Bravura. That would be Neil Broekhuizen.
Broekhuizen is an indeprendent non-executive chair and director of Bravura. According to an ASX notice, Broekhuizen owned 215,000 shares of the company before 4 November.
But on that date, Broekhuizen went shopping. He acquired a whopping 636,000 shares on 4 November. This was at an average price of 62.53 cents per share. The buy-the-dip move almost quadrupled Broekhuizen's share count to 851,000.
Broekhuizen didn't get in at the bottom by any means. Bravura bottomed out at 54 cents a share last Thursday. But even so, Broekhuizen has already been handsomely rewarded for his pounce. Today, the Bravura share price is trading at 71 cents. That's up a staggering 19% for the day.
This means that Broekhuizen has already booked an approximate profit of $60,000 on his purchase of the All Ords share last week.
So it seems that Broekhuizen may have pulled off a classic 'be greedy when others are fearful' play right out of the Warren Buffett handbook. No doubt Bravura investors have taken this as a positive sign.
