Is this the Bottom?, page-20

Len Ainsworth has sold his share to the Austrian company Novomatic:
http://www.novomatic.com/en/explore...inalises-ainsworth-investment-following-green

Novomatic has 52% of Ainsworth so they can call the shots to some extent. This is a risk in that IF they wanted to make Ainsworth look less profitable, they could arrange for IP, consultancy, marketing, admin, head office, licences etc to be charged at high prices back to Novomatic. Or there may be other ways. What this does then is make Ainsworth look less valuable/profitable than it really is, and drives the share price of Ainsworth lower. Then, once it is low enough, they can make a takeover offer for the remaining 48% at a bargain price. I am NOT suggesting for an instant that this is what is happening in the case of Ainsworth, but there is a risk that it could happen, if Novomatic do not have high ethical standards.

Another listed company I follow Watpac is being bought out via takeover offer by a Belgian company. The Belgian company prior to the offer had a significant holding. The Watpac share price had been doing poorly - and then, surprise! we have a takeover offer from the Belgians, and another great Australian company is disappearing into 100% foreign ownership. Not the same situation as Ainsworth. But if you were Novomatic and wanted to buy 100% of Ainsworth, it would be in your interests to drop the share price first and if you already own 52%, there might be a way to do just that.

Ainsworth share price has been doing poorly ever since Len sold his share. But the peak share price was well before he sold, so don't read too much into it.