Capital reduction, in the context of the stock market, refers to the process by which a company reduces its total share capital. This can be achieved through various methods, and the primary goal is often to reorganize the company's financial structure, improve its balance sheet, or return capital to shareholders.
There are a few different ways capital reduction can occur:
Share Buyback: A company may buy back its own shares from the market, effectively reducing the number of outstanding shares. This can lead to an increase in the ownership percentage of existing shareholders and potentially boost the value of remaining shares.
Cancellation of Shares: A company may decide to cancel some of its shares, leading to a reduction in the overall share count. This could be done to simplify the company's structure or improve financial ratios.
Return of Capital: A company might return excess capital to shareholders by distributing cash or assets, which can lead to a reduction in share capital.
Consolidation or Reverse Stock Split: In some cases, a company might consolidate its shares by combining multiple shares into one, effectively reducing the total number of shares outstanding. This is also known as a reverse stock split.
It's important to note that capital reduction does not necessarily indicate a negative outlook for the company. It can be a strategic move to optimize capital structure, enhance shareholder value, or streamline operations.
However, investors should always carefully assess the reasons behind a capital reduction and its potential impact on their investment before making any decisions.
Let's see the next qr since parts of the highway already operational and we should start seeing some improvement in financials, no doubt will still be in red. It will take awhile... You got diamond hands? Hahaha
@speakup , now u sober already?? Still dreaming about the good result?It show u never study well enough of what u bought.
The loss of qrt is totally well expected by management due to the interest cost, and it is part of the infrastructure expenditure for the project, so do not make a big fuss over it.
We just need to monitor well if they really can complete 4 section within this yr or not, with no further delay.
Earnings in FY 2023 and 2024 are not important anymore. Investors are looking at future earning. If you have 8.06 billion now, you cannot build this WCE because the land cost and labour cost are higher than 5 to 10 years ago. Hence the share price at the current level is very cheap. If you value WCE at 8.06 billion, the share price should worth 2.70. The share price will move up north as the completion time is getting nearer and nearer. My 2 cents comments.
Speakup, don't panic. Mesti baca details dlm report. also mesti faham nature of this business. anyway lets see how market react, kita mungkin surprised.
The loss of qrt is totally well expected by management due to the interest cost, and it is part of the infrastructure expenditure for the project. This loss quarter result is expected. The most important is company able to complete the rest of sections without delay. Once all the sections completed, then is time for wcehb archive higher target price. https://theedgemalaysia.com/node/679891
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....
VincentTang
1,214 posts
Posted by VincentTang > 2023-08-17 09:50 | Report Abuse
Top up WCEHB at 0.7 from part of YTLPOWER gain.