For Newbies To Know And Learn About Penny Stocks
FINTEC - MASSIVE SHARE ISSUANCE (ESOS,......)
whistlebower99
Publish date: Thu, 22 Jul 2021, 11:14 AM
whistlebower99
0 12
For Newbies Education.
Every year people who are new to the stock market will get into the market to try their luck with the aim of making extra income or a steady income by investing or speculating on stocks.
Many started without much knowledge and blindly follow comments from friends or from public forum.
This blog intended to provide newbies with the knowledge and information & latest announcement on penny stocks especially those with huge total issued shares and making losses for years.
Every year people who are new to the stock market will get into the market to try their luck with the aim of making extra income or a steady income by investing or speculating on stocks.
Many started without much knowledge and blindly follow comments from friends or from public forum.
This blog intended to provide newbies with the knowledge and information & latest announcement on penny stocks especially those with huge total issued shares and making losses for years.
EFFECT OF MASSIVE SHARE ISSUANCE TO RAISE FUND
As at 22/7/21
Currently, the total issue shares have exceeded 4 BILLION as a result of rampant share issuance over the years.
If all the warrants and ICPS (PA) are fully converted, the total issued share will exceed 5.5 BILLION shares!!!
(As a comparison, TopGlove, a profitable company has 8,206,762,034 issued shares)
For 2021 year to date, it has issued 1,097,094,400 new shares to ESOS (Employee Share Option Scheme).
New shares are also issued and listed in the market when holders of ICPS and warrants convert their holdings into shares.
(Private Placement and Right Issue exercise is also another way for company to issue new shares, to raise fund, further adding to total issued shares)
The frequent issuance of new shares will result in enlarged issued shares which has already hit MULTI-BILLION, causing massive dilution of EPS and reduction of shareholder percentage affecting specially minority shareholders.
Many penny stocks in BURSA, that frequently raise fund by issuing shares via ESOS, Private Placement (PP), Rights Issues, Asset Acquisition has ended up taking drastic action of Multiple Proposal (Share Consolidation followed by Rights Issue with Free Warrants) to raise more fund at the expense of shareholders, causing huge losses to specially minority shareholders.
As a result of the frequent share issuance, many penny stocks are cash rich but somehow they are incurring losses quarter after quarter or year after year, thus utilizing the company fund and depleting it over time.
The company fund should be used to benefit shareholders like using it to find ways to increase business profits, business expansion, etc.
Many penny stock companies also utilize the company fund to buy shares of other penny stocks for ‘investment’ and incurred huge losses as a result.
There have been many cases of loss making penny stocks that frequently raise fund by massive issuance of shares ended up taking the last resort of Multiple Proposal of Share Consolidation followed by Rights Issued with Free Warrant to raise more money at the expense of shareholders resulting in huge losses to specially minority shareholders.
Recent cases of Multiple Proposal (share consolidation and rights issue with free warrants) include SANICHI and PASUKGB.
It would be useful to take a look at the price movement of SANICHI and PASUKGB before and after the Multiple Proposals.
Retail investors and minority shareholders should be aware of the risk of huge losses if the company is heading towards such Multiple Proposal.
Trade with care, not be greedy and get stuck for years.
COME BACK OCCASSIONALLY FOR MORE UPDATES
Total amount invested in Focus Dynamic shares in 2021 = RM39,654,291.73
Total shares bought in 2021 = 58,500,000 + 30,097,700 = 88,597,700
Average Cost Price Per Share = RM0.4475
As at yesterday (21/7/21) closing price of RM0.04, market value = RM3,542,908.00
MASSIVE UNREALISED LOSSES !!!
27/4/21 : ACQUISITION OF SHARES IN FOCUS DYNAMIC (stock code 0116)
Average Buy Price = 20,135,471.58 / 58,500,000 = RM0.344
|
Description |
FINTEC GLOBAL BERHAD ["FINTEC" or "the Company"] - ACQUISITION OF SHARES IN FOCUS DYNAMICS GROUP BERHAD |
|
The Board of Directors of FINTEC wishes to announce that its wholly-owned subsidiary, Asiabio Capital Sdn. Bhd. (“ABC”), that is principally involved in the investment of marketable securities had on 27 April 2021 acquired in aggregate 0.92% or 58,500,000 shares of Focus Dynamics Group Berhad (“Focus”) from the open market for an aggregate sum of RM20,135,471.58 (“Acquisition Consideration”) in cash (hereinafter referred to as the “Acquisition”). Please refer to the attachment below for more details. |
|
26/2/21 : ACQUISITION OF SHARES IN FOCUS DYNAMIC (stock code 0116)
Average buy price = 19,518,820.15 / 30,097,700 = RM0.64
|
Description |
FINTEC GLOBAL BERHAD ["FINTEC" or "the Company"] - ACQUISITION OF SHARES IN FOCUS DYNAMICS GROUP BERHAD |
|
The Board of Directors of FINTEC wishes to announce that its wholly-owned subsidiary, Asiabio Capital Sdn. Bhd. (“ABC”), that is principally involved in the investment of marketable securities had on 26 February 2021 acquired in aggregate 0.48% or 30,097,700 shares of Focus Dynamics Group Berhad (“Focus”) from the open market for an aggregate sum of RM19,518,820.15 (“Acquisition Consideration”) in cash (hereinafter referred to as the “Acquisition”). Please refer to the attachment below for more details. |
|
COME BACK OCCASSIONALLY FOR MORE UPDATES
As at 22/7/21, Total number of shares issued to ESOS in 2021 = 1,097,094,400
July 2021 230 million shares (to be updated)
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3176311
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3173023
June 2021 300 million shares
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3164226
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3167368
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3164226
May 2021 200 million shares
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3157471
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3155021
March 2021 187,094,200 shares
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3137735
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3135705
Jan 2021 180,000,200 shares
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3124830
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3119315
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Stay away from these pump n dump con stocks
2021-07-22 12:46