Bollore (BOL: FP)
12-month performance: -43%
Insider activity: Bullish
Buying pattern: Large purchases from ex-CEO
Recent news: Issued Q1 results and Covid-19 update
Bolloré is a French holding company that is active in a number of industries including transportation and logistics, communication, electricity storage and systems, and asset management. Operating in over 100 countries, the group has 81,000 employees worldwide. The company is listed on the Euronext - Paris and currently has a market capitalisation of €7.1 billion.
In an update on 20 April, Bolloré advised that the impact of the coronavirus on group activities has been limited so far. It said that its transportation and logistics activities are currently benefiting from exceptional transport of freight related to the health crisis, and that revenues in its communications business had not been affected. Bolloré also said that it is confident in the resilience of its main business lines and that it has significant financing capacity. At 31 March, the group’s liquid assets, undrawn confirmed credit lines, and liquid investments, stood at €2.5 billion for Bolloré and reached €9.6 billion including its Vivendi operations.
Bolloré shares have experienced a significant decline on the back of coronavirus uncertainty and what we think is interesting is that billionaire businessman Vincent Bolloré – who was previously Chairman and CEO of the group and is a Top 5 Insider – has been taking advantage of this share price weakness. Between 21 April and 28 April, the insider purchased 9.7 million shares in Bolloré, spending a total of €22.3 million on stock. This suggests that Bolloré sees the stock as undervalued after its recent decline and expects it to rebound in the future. Given the sheer size of this insider purchase, we think the stock is worth a closer look right now.