$Seatrium (S51.SG)$ SINGAPORE – Seatrium’s decision to under...
$Seatrium(S51.SG$ SINGAPORE – Seatrium’s decision to undertake a share consolidation will not have a fundamental impact on the stock, but will discourage speculative activity on the counter.
This seems to be the view among brokers and analysts after the company announced a 20:1 share consolidation exercise on Feb 26 as it unveiled its full-year earnings for 2023.
A 20:1 share consolidation means that for every 20 shares a Seatrium investor owns, the person will now own one – while the value of each share will increase accordingly. So, for example, every 100,000 shares held at prices of around 9.3 cents would theoretically become compressed to 5,000 shares priced at $1.86 each.
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friendly champion : what does that meant20:1 share consolidate exercise, can explain abit
101572862 friendly champion: he explained
A 20:1 share consolidation means that for every 20 shares a Seatrium investor owns, the person will now own one – while the value of each share will increase accordingly. So, for example, every 100,000 shares held at prices of around 9.3 cents would theoretically become compressed to 5,000 shares priced at $1.86 each.
104293346 : bigger meat for shortist to short it down after consolisate price and company can continue to issue more Rights since at such high price.
Herman : what do you guys think about the fair price of this price right now? since it continues bleeding with the huge loss of $1.9b
Jack LSW : I believe that implementing share consolidation is a positive move. Since Seatrium is part of the STI index stocks, a share price in the low cents range may not be appealing to foreign investors and fund managers. Additionally, excessively low share prices can contribute to trading volatility, driven by speculative activities.
TG Moo : This may give the share more room to decline the price.
gentle Iguana_2693 : Chris Ong is focusing on the wrong thing for his own face sake. if they have been good at what they are supposed to be doing then they should be doing stock splitting than consolidation. all share are speculative, that is the nature of stock market. their track record of driving a high value stock down to 8 cents speak for itself.
don't take my post as a signal to sell at this moment. this shall move higher until they start to give dividends, should be achievable from the order book.
104293346 : the only option to encourage investor to buy this stock is repurchase share mandate from market. reduce the share float in market n pop up the price. rather share consolidation to bring up share price for more rooms to short n to issue more rights at much better price after recent several big loan fm banks.