Lolz..Iris still a growing stage company in its industry as population getting wealthier and educatd. Don't expect mich on the dividend if they have project to expand their business. Tight cashflow will only make them continuously right issue or pp only.
this is what chatGpt comments on Capital reduction and consolidation. Trade at your own risk. Capital reduction and consolidation are two financial strategies used by listed companies to manage their capital structure and improve various financial metrics. Let's take a closer look at the benefits of each:
Capital Reduction: Capital reduction involves decreasing the nominal value of a company's shares or reducing the share capital. This can be done for various reasons, and some of the benefits include: Debt Reduction: A company may use capital reduction to reduce its debt burden. By decreasing the share capital, the company can repay some of its debts, improving its financial position and reducing interest expenses.
Increased Solvency: Capital reduction can strengthen a company's financial position, making it more solvent and less risky. This, in turn, can enhance investor confidence and attract more investment.
Improvement in Financial Ratios: Capital reduction can lead to an improvement in various financial ratios, such as debt-to-equity ratio and earnings per share (EPS). This can make the company more attractive to investors and potentially lead to an increase in the stock price.
Enhanced Dividend Payout: With reduced capital, the earnings of the company are distributed among a smaller number of shares, which can increase the earnings per share (EPS). This may result in a higher dividend payout per share to shareholders.
Consolidation (Reverse Stock Split): Consolidation, also known as a reverse stock split, involves reducing the number of outstanding shares while increasing the share price proportionally. Some of the benefits of consolidation include: Share Price Increase: By reducing the number of shares, the company's stock price per share increases. This can make the stock appear more valuable to investors, potentially attracting a broader range of shareholders.
Regaining Compliance: Companies with low stock prices may face delisting from stock exchanges due to non-compliance with exchange listing requirements. Consolidation can bring the share price back above the minimum required level, helping the company maintain its listing status.
Perceived Market Stability: A higher share price resulting from consolidation may create a perception of greater stability and financial health for the company, especially among retail investors.
Liquidity Improvement: Consolidation may increase the stock's liquidity by attracting institutional investors who typically have minimum price requirements for investing in a company's shares.
It is essential to note that while capital reduction and consolidation can offer these benefits, their implementation should be well-planned and in line with the company's financial objectives and shareholder interests. Additionally, the success of these strategies depends on various factors, including the overall market conditions and the company's specific financial situation. Before implementing any of these actions, companies should consult with financial advisors and consider the potential implications on their business and stakeholders.
0.025 dream? The impact of a 1B project is not just lost on earning. It could well impact their ability to repay debts and get capital for new projects. And their likely court case with government would likely takes years. Meaning more cash needed. The share consolidation would be another huge blow to the share. 0.025 might not achieved tomorrow..but in the run towards the share consolidation dateline, yes it will be.
Only hope they don't default debts. If yes there would fall into PN17 and risk delisting. They very obvious struggling with debts and cash flow issue. Now without 70 cash from sale of the company that got the Project. That is huge blow
So with so healthy balance sheet, why need to sell 80% of the NIISe for just 70m? Now without this 70m, without the project, all the expenditure spent on this project, how big the impact on their cash flow? Not to mention the court case against government would be burning money too
(COLLECTIVELY REFERRED TO AS THE "PROPOSALS") We refer to the Company's announcements dated 14 July 2023, 25 July 2023, 28 August 2023, 29 August 2023 and 20 September 2023 in relation to the Proposals. Unless otherwise stated, the terms used herein shall have the same meaning as defined in the said announcements.
On behalf of the Board, RHB Investment Bank wishes to announce that the Company, had, via its legal counsel, filed an application to the High Court of Malaya in relation to the Capital Reduction pursuant to Section 116 of the Act.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....