Look at a few of the latest stocks which gone through the shares consolidation exercise , namely XDL/MMAG/ASIABIO, XDL performed very well,MMAG performed good too.Even ASIABIO was up on Ex-Date.The ultimate performance still depend on development after that such as any new business ventures or emerge of potential investors .( Hopefully some good news from Ali Baba venture)
Share consolidation is a strategy to attract large institution. Most institutions can't invest in penny stock. The NOSH is 1.7 billions, reduce by 4 times to 450mil will certainly attract different of investor. Show time next month.
ffok u alll talking kgroup rubbish, later PolyXX and ahuat &aheng no happy hehehehe . three of them r spy giv u guys hold gao gao then they sold gao gao. water fish still u guys.
4 into 1 means like 4 X 4 = 16 sen. But your 400 lots becomes 100 lots but the stock price increase 4 times. What to worry? They just want to shrink the stock and make it smaller and lesser. Easier to goreng.
No worries. Be happy. Only those who are confident will win. Those sell now are losers.
The Board is of the view that the higher trading price of the Consolidated Shares following the Proposed Share Consolidation may increase the profile of the Company amongst investors and lead to more attention by research houses and fund managers. This may in turn increase market interest and activity in the Consolidated Shares, and render the Consolidated Shares more attractive to investors. As the Company has a large number of Shares in issue and a relatively low trading price range, the Board noted that a small movement in the Share price may result in high percentage movement in the Share price. The Proposed Share Consolidation 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. Following the completion of the Proposed Share Consolidation, the theoretical market price of each Share will increase by 4 times and the total number of Shares in issue will be reduced by the corresponding ratio. Notwithstanding this, Shareholders should note that the Proposed Share Consolidation is not expected to alter the total value of the Consolidated Shares held by them. Further, as the Proposed Share Consolidation would lead to a reduction in the number of Shares available in the market, the Company will also benefit from easier management of smaller number of Shares.
Maybe Kgroup will rally again...soon just before the consolidation or after consoliation because this is the time shark may want to speculate or play it up....keep in view.
These consolidation is not really some bad news. Its the same thing. there is no change of value. 400 lots of 4 sen is still the same as 100 lots of 16 sen. Why cry mama and sell ?? Unless news of massive loss or massive debts...then sell and run. This is just a mathematics change with a net net zero difference. Why cry mama? I think fools will sell now at this rock bottom price. Don't compare with Hubline. Those are capital reduction because they loss so have to cut the par-value of the stock. There is no cut in this case for Kgroup. Only consolidation of stocks from 4 to 1 with higher price. Same thing. Still worry? Sell now and lose all. Be patient...maybe...after consolidation it rally to 50 sen. who knows the future??
I already bought enough and now just waiting for the rally. If I sell now I lose all my money. I better keep tight and wait for Alibaba and DFTZ to materialized. Be patience.
Buy1 Sell2 : But ppl will calculate this way if currently i got 1 mil unit hike in 1 cent will earn rm10k if consol 4 to 1 means 1 cent hike will only give u rm2.5 k.
Yes your stock will be reduced in volume. BBBut.... it will increase in price 4 times!!!! Think about it. When the stock shrink, it is EASIER to Goreng. Too much stock is hard to push. Thats why they want to shrink it. To control the volume. Be patience. I have seen many times when a stock is diluted like XOX case, it went down like hell. So when a stock is consolidated, it should go up like hell too. Think about it. This is not par value reduction. This is not PN17. This is mere consolidation which means unity is strong. 4 chopsticks bundled together can break easily??? 1 chopstick can break easily if you break them 1 by 1 4 times. Relax. Those panic sellers sell. I will keep and buy more later if the price drop because I know this is the best time to collect. But of course I only buy what I can afford. Not go and borrow from loan sharks. Investment is a risk. So if you panic sell and let others collect more. This stock is really a goreng stock like mlab. So stay tuned for any sudden rally or sudden drop. I already wet my hair and continue to hold on to my investment. Die die.
With so many waterfish being trapped in this counter u think they will let u escape easily? First is to have capital consolidation and then likely will come with another rights issue (maybe next year) though they just had one recently.
2013 Rights issue (2 for 2 at RM0.10) 2014 Rights issue (3 for 2 at RM0.10) 2015 Shares consolidation (4 into 1) 2016 Rights issue (2 for 1 at RM0.11) 2017 July proposed shares consolidation of 3 into 1
Loss until yr mom also cannot recognise u if u were long term shareholder....
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....
Rio2814
1,942 posts
Posted by Rio2814 > 2017-07-22 18:16 | Report Abuse
Bill .. I can't find any right issue and the details in Bursa announcement. please let me know which part. Thank you.