On Monday thefast-growing company announced a $176 million capital raising,as it unveiled its fourth profit downgrade for 2019.
And yesterday its shares recommenced trading for the first time since October 21. The stock was promptly punished by investors and closed down 18 per cent at $2.63,its lowest closing price since 2016. Investors wiped $232 million off the company's market capitalisation in a session.
But Robert Costa,who left the business in 2015 after a career that started in 1969,said he was happy to stump up the cash to buy new shares he was entitled to buy.
"They've got to make some adjustments and I don't think it's going to bounce back in five minutes,but it's going to be a good bloody,solid,long term investment. So at that price ($2.20 per new share) I'm happy to jump on the allocation,"he said.
It's going to be a good bloody,solid,long term investment. So at that price ($2.20 per new share) I'm happy to jump on the allocation.
Robert Costa,shareholder in Costa Group
"That's not being emotional about whose name's on it,I just know that what I know of the business,I'm saying that's under-priced,"he said.
Mr Costa and his extended family have a significant shareholding in the ASX-listed Costa Group via an entity holding 15.8 million shares. He said he could buy another 1.25 million shares at $2.20 each under the capital raising,which equated to a cost of $2.75 million.