Existing issued share approx 708m. After proposed consolidation approx 142m. Liquidity will be reduced by 5x. Much more easier to control the share price?
Read the details of the proposal. I think many people miss out the fact that the management have decided to cancel all treasury shares held (approx 7,953,800 shares) as of now. Which is good news for us investors.
The treasury shares amounting to only around 1%. It is not much, but the gesture is much appreciated, especially when valuations are already on the high side. It showcase good management by protecting and benefiting investors. You can see some other companies selling their treasury shares for profits instead to 'raise funds' when they already have sufficient funds. Try to look around and you can see the trends for some of these companies. Buy back when price is low and selling them when the price is high.
Prudent Management in Price Speculation - Jobstreet Received a question on Jobstreet. It is in the KLSE Trading Platform First Page and as well as a penny stock (after ex-dividend 10/12/2014). After the 1st day closing post ex dividend @ 29 cents, it has been GORENG up till 0.48 @ 30/1/2015. Generally Jobstreet is a good company with great management team.
After that much GORENG ACTIVITIES, announcement came out on 5 to 1 consolidation. Look at how the management announce it:
1st : Proactive Capital Management 2nd: Institutional Investors tend to consider penny shares as too volatile. 3rd: Higher share price will result in a reduction of speculative activities.
In a nutshell, management would not like to see their company acts like a CASINO for trading basis. Jobstreet is a company without business, only assets worth NTA 0.37. Again, who are the people GORENG this counters from 0.29 till 0.48? Once the management step in to control the speculation, what do you think of the share price on Jobstreet?
BTW, who again trading the shares and holding shares @ 0.48?
Note: A company gets listed is due to their underlying business. Money you paid during IPO/accumulate post IPO is buying a fraction of the business at AN AGREED MARKET PRICE. When you start to trade Penny Stocks without looking at their Financial Health Report, that is where you open up all the risks to yourself.
I can see this goreng-goreng business done by retailers and not company. You know, they like to goreng all other penny stocks too. Check top 10 active counters: all penny stocks being goreng everyday. Not even a single one priced RM1 or more.
Alredi told u guys mah, will fall back near 0.40 or lower. As most speculators flee liao. Strong msg sent by management. Ask those goreng kaki fuk off.
have a look at note 18. quoted investment. total investment at market value already shoot up to rm205 million. this shows that jobst is undervalue at this price.
Prospects for the Year 2015 Subsequent to the disposal of the online job portal business to Seek Asia on 20 November 2014, the Group’s future prospects will be dependent on the performance of its associated companies in Taiwan and Malaysia, quoted investments in Hong Kong, and operating activities, including Autoworld, in Malaysia. The Group will derive income primarily from the provision of website advertising services on Autoworld, transition services provided to Seek Asia, dividend income from its quoted investments and rental of office space. The Board and management will also endeavour to identify and evaluate new businesses and/or assets to be acquired by the Company which may contribute to the financial performance of the Group. Subsequent to the disposal of the online job portal business, the Group has a healthy cash position and does not have any debt. Uncertain economic conditions may however affect the performance of the Group’s existing businesses, associated companies and investments. Additionally, the acquisition of suitable new businesses and/or assets may not arise or may require more time to be completed.
On 30 January 2015, the Board had announced that the Company is proposing to undertake a proposed share consolidation exercise involving the consolidation of every five (5) existing ordinary shares of RM0.10 each into one (1) new ordinary share of RM0.50 each in the Company (“Proposed Share Consolidation”). The Proposed Share Consolidation is expected to be completed in the quarter ending 30 June 2015.
The quantum of a final dividend for the year ended 31 December 2014 will be announced once the audited profit attributable to shareholders of the Company for the year ended 31 December 2014 has been finalized. Going forward, the dividend policy will be reviewed in line with the new direction of the Company. A final single tier dividend of 0.5 sen per ordinary share of RM0.10 each was paid for the financial year ended 31 December 2013 amounting to RM3.540 million
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....
JT Yeo
1,637 posts
Posted by JT Yeo > 2015-01-31 11:56 | Report Abuse
if they love pump and dump they will announce 1 to 5 not 5 to 1