Fintec: The “pro et contra” of Consolidation

After going through the consolidation report, link: https://www.klsescreener.com/v2/announcements/view/6331259 , I hardly find any pro or con of this Consolidation exercise.

The report mainly highlights the “assumptions” of the advantages of the Consolidation.

Below are some of the advantage “assumptions”:-

‘- 2.1…theoretically shall not have any impact on the total market value of these securities held by the Shareholders, ICPS holders and Warrant A holders.

‘- 3.0 The Proposed Share Consolidation is part of the Company’s proactive capital management plan to improve the Company’s capital structure. …would lead to a reduction in the number of Shares available in the market and may reduce the magnitude of fluctuation of the Company’s market capitalisation.

‘- 4.2 …minimum scenario..Share capital from 368,726k to 403,633k

…maximum scenario…Share capital from 368,726k to 460,864k…”after taking into account of” reversal of Warrants reserve and “full conversion/expiry/maturity of warrants/ICPS??”

IMHO, some “assumptions” of the disadvantage will be:-

‘- the lowest price of 0.005 can be revisited after the Consolidation

‘- the loss in $ “after deducting estimated expenses to be incurred in relation to the Proposed Share Consolidation of RM0.18 million.”

Below are some of my “Tug of War” (bid at 0.01 to get seller at 0.005 before market opens) trades record for Fintec, Fintec-PA and Focus-PA:-

Detail 1: Won at 0.005 and lost at 0.01. So far only 2 losses..

Detail 2: AGES-PA won at 0.005 and managed to sell some at 0.01 during the recent spike; trying to sell some at 0.015 for 200% gain, but failed.

Updated post consolidation purchase reflected in Detail 3.

Detail 3: As seen comparing with Detail 1, managed to get more Fintec-PA easily due to 'fear' of Consolidation..??

This is NOT a buy or sell recommendation, just for a sharing to collect “toilet paper” at 0.005 price. Without the Consolidation, I am sure the price will not trade below 0.005. Happy Trading and TradeAtYourOwnRisk..