Below is my discussion of ideas in i3investor with a Forumer on the topic of shares consolidation.

@Forumer: Next will be share consolidation once touched 0.01 to 0.005. This will allow them to milk every drop further once reached bottom. Retail investors in these companies hardly make it alive. Lets see they will resort to share consolidation.

02/10/2021 3:08 AM

BLee: Hi @Forumer, I can't figure out how consolidation and milk every drop can benefit PP, ESOS, SIS, RI etc subscribers, not being milk together? Maybe I am too dumb to understand? Am I too dumb to dump the stock? Thinking....to be smart!!
Happy trading and TradeAtYourOwnRisk.

02/10/2021 8:43 AM

Example of trades for case study: Invested in X investment (not to name in case will sing down and anger counter comrades) which bought at 63sen, sold 80% around 95sen and holding balance into 3 penny stocks i.e. Focus D-PA around 1sen, Fintec around 2sen and KGroup at around 3sen. Is this switching from money making stock with high NTA and high cash position into 2 money losing stocks and 1 money making stock with low NTA and high cash position, dumb? I view this like playing snake and ladder game, X investment has reached a high pinnacle level and time to start 3 new games at the bottom of pinnacle. This X stock seems operating in the same trend of investing in other counters as reflected in one of my article on cash rich counters investing in beat down counters i.e. X stocks depend on Y and other stocks' price for good EPS and NTA (X stock did report loss of RM-51.484M in 20Q3 bcos of the same reason?).

X counter Share and cash details:-
Number Of SHares (NOSH): 693mil
Quantity by funds exercises: 663,021,000-663,013,000=8,000
RPS issued = 132,604,151
Warrants issued = 331,510,380
Note: Earned from this RPS issuance and invested the proceeds into the 3 new investments.
Percentage by exercises: NA%
Capital: RM676mil as at 1st Oct. 2021
Cash and cash equiv. position:  RM642.458mil as reported at Q30.06.2021 report.
Cash/Capital: 0.95

Details No. 1: X counter cash position

Fintec Share and cash details:-
Number Of SHares (NOSH): 5,230mil
Quantity by funds exercises: 3,945,664,575 as at 30 June 2021- 969,873,355 as at 30 June 2020 = 2,975,791,220
Percentage by exercises: 75.42%
Capital: RM78mil as at 1st Oct. 2021
Cash and cash equiv. position:  RM109.996mil as reported at Q30.06.2021 report.
Cash/Capital: 1.41

Details No. 2: Fintec cash position

Focus D Share and cash details:-
Number Of SHares (NOSH): 6,372mil
Quantity by funds exercises:  6,372,185,736 as at 30 June 2021- 2,044,266,157 as at 30 June 2020 = 4,327,919,579
Percentage by exercises: 68%
Capital: RM350mil as at 1st Oct. 2021
Cash and cash equiv. position:  RM128.352mil as reported at Q30.06.2021 report.
Cash/Capital: 0.37

Details No. 3: Focus D cash position

KGroup Share and cash details:-
Number Of SHares (NOSH): 2,554mil
Quantity by funds exercises: 2,354,310,000 as at 30 June 2021- 642,274,000 as at 30 June 2020 = 1,712,036,000
Percentage by exercises: 73%
Capital: RM77mil as at 1st Oct. 2021
Cash and cash equiv. position: RM30.460mil as reported at Q30.06.2021 report.
Cash/Capital: 0.40

Details No. 4: KGroup cash position

In my own conclusion, Fintec is the most undervalue of the 4 counters of case studies based on Percentage of cash/capital of 1.41. I am still searching and thinking how will consolidation and milk every drop can benefit PP, ESOS, SIS, RI etc subscribers, not being milk together? Is it because of this undervalued cash position can be 'milked'?

Sources: i3investor, klsescreener and other internet surfing.

Happy trading and TradeAtYourOwnRisk.

Disclaimer: The above opinion does not represent a buy, hold or sell recommendation; just a personal opinion and for sharing purposes only. Any offences and errors are unintentional; my apology in advance.