A lot of people doesn't really understand what's the meaning of share capital reduction and simply make a naive comment. Your number of shares and value of share will not be affected as capital reduction is only moving the capital from share capital to offset the accumulated losses in accounting.
Before share consolidation: 1,000 shares@0.10=RM1,000
After consolidation: 200 shares @0.50=RM1,000
PLEASE MAKE YOURSELF MORE KNOWLEDGEABLE BEFORE MAKE ANY COMMENT.
Your focus should be on share consolidation instead of capital reduction. After share consolidation, number of share is less by 5 times and the share price increase by 5 times. Share price is easily to move up as number of shares is lesser and fund managers would be more welcome a 50 sen share than a 10 sen share. It have a positive impact if the company prospects is turning good.
Based on last quarter report, the marine segment has reported an operating profit of 38 mil and the trend is foresee to be better instead of worsening by looking the industry as a whole. While for the drilling fluid and waste management, the company just awarded 600 mil contract from Kuwait, Ofcourse the segment profit will be better again.
if you bought scomies for short term tenure, certainly they will sold it to cut loss... no one at this juncture are willing to hold. BUT This proposal exercise merely to streamline scomies capital presentation by way reduce his capital to retain profit to offset their losses incurred in recent q.report losses caused by impairment. hence its gives them better balance sheet position for them to get more projects. while ppl views the words of capital reduction and share consolidation they start to loss confidence then reduce their position without insight scomies business model.
we should look into their fundamental value instead of panic selling due to the proposal capital restructure exercise to streamline his balance sheet without affected his share price. bear in mind there are not many companies like scomies manages to sustain during OG cycle downtrend. become casualty in subdue OG market like THHeavy, Perisai, Barakah, Sapura, Alam, Velesto force to do Right issue & fall under PN17. as what calvin said scomies have strong business model NO many companies in Malaysia cam compete international.
Big share capital based like Scomies, Netx, Vivocom,Nextgram,Sanichi etc are favourites of syndicated operators who recommend highly after their low priced collection....before the pump and dump...beware..
anyone who want their capital reduce to 50% can buy tomorrow at .08 after complete CR and CS, the price will be 40cent and u need to wait the price to climb to 80 cent for u only to break even. worst it will go lower (bear in mind that u already loss 50%). that is only if the reference price is .08.. if on friday the price go to .06? figure out yourself lah.. do yr own calculation , dont simply accept what other said at face value.. make yr own research haiyooo i would rather buy after they complete the CR and CS as show of solidarity, i am still holding 1k unit so i could vote in the coming egm
Posted by freeman > Oct 14, 2019 6:27 PM | Report Abuse
anyone who want their capital reduce to 50% can buy tomorrow at .08 after complete CR and CS, the price will be 40cent and u need to wait the price to climb to 80 cent for u only to break even. worst it will go lower (bear in mind that u already loss 50%). that is only if the reference price is .08.. if on friday the price go to .06? figure out yourself lah.. do yr own calculation , dont simply accept what other said at face value.. make yr own research haiyooo i would rather buy after they complete the CR and CS as show of solidarity, i am still holding 1k unit so i could vote in the coming egm
CALVIN SAY FREEMAN GOT PASS YOUR PRIMARY SCHOOL MATHS EXAM OR NOT?
IF YOU DON'T KNOW HOW TO CALCULATE GO CALL UP SCOMIES OFFICE TOMORROW AND ASK THE ACCOUNTANT OR CFO HOW TO GET THE CORRECT FIGURES
The proposed share consolidation will result in an adjustment to the reference price of the shares listed and quoted on the Main Market of Bursa Malaysia but will not have any impact on the total market value of the consolidated shares held by the company's shareholders.
If you dont know do your own calculations then just read the facts was stated pleaseeeee.
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....
cumcumshot
438 posts
Posted by cumcumshot > 2019-10-14 09:08 | Report Abuse
The same dude is calling a buy on NetX! Which has a paid up & issued shares 3.2b sjares/