Esos for those uninformed is a form of shares of the company given out to people such as the employees for their hard work or form of reward. Where does this additional shares come from? By increasing the number of shares lor (hence the Milo Ais tambah more Ais kasi no taste)
It could be also an excuse for the management to dilute or enlarge the shares of the company by having more shares.
You may think it's ok la, more shares more fun but essentially it brings down the value of the shares you already own.
If you examine the report, it says almost half the existing company paid-up to be issued and at what price (hint: it's dirt cheap).
So you pay sky high price for the shares of the company, but other people get it at the bargain, no it's almost for free.
In Malaysia esos and sis is use by penny stock to manipulate the price. The director want to buy cheap at the discount compare to market price. Which is not fair where public people like us buy stock at the current market price.
Once the scam director got cheapest million of stock they will use that and sell and the price of 0.15 will drop.
Esos sis issue by loss making penny stock is a sign of bad thing.
It will be good a sign when they announce esos sis at the current market price not at cheap discount price.
7.7mil new shares via esos, vs existing total shares of the company at 716mil shares... i.e esos issuance will add slightly more than 1% of existing shares, at avg price of 0.0266 - which is about 17.7% of the current stock price. Those who get the ESOS will get an immediate of 4.64 times return from the money they 'invested'.
So, expect a sell off of at least 7.7mil shares today.. but this 1% sell off by those employees who get ESOS will not have much impact to price movement. The one that will affect the price movement is if existing shareholder is panic about the 1% sell off and follow them selling..
Agree with Menort on the ESOS , huge amount of Very cheap ESOS that accounts for more than 30% of the total paid up shares in penny stocks are mainly designed for high ranking ppl Instead of private placement.
Those NEWBIES are innocent on penny stocks and they like to talk about investment in penny stock ( rubbish stocks) those without fundamental and Operators always apply news to push up the share price for profit in hot market ( particularly there are more retail investors Involvement cause institutional or long term investors do not buy rubbish shares for investment ) for many years that are why only operators manipulate it.
Experienced players will always play on speculation but not investment In rubbish stocks when you look at the financial position and performance of the counters with your technical skill.
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....
XiaoMingRe
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Posted by XiaoMingRe > 2020-09-17 10:36 | Report Abuse
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