Trade this stock with 3 x trading limit. Probability is very low given the company cash flow is negative. Its actually hard to make money from buying equity. This is why most investors are dumping the stock.
Aktien Top Flop
The initial sell-off on Wall Street came amid lingering concerns about the outlook for to the global economy following soft Chinese manufacturing data in December - however, bargain hunting took hold shortly thereafter.
Traders also kept an eye Washington as President Donald Trump invited congressional leaders to a meeting as the partial government shutdown entered its twelfth day due to an impasse over funding for Trump's controversial border wall. Democrats are due to take control of the House later today and intend to move forward with plans to reopen the government without providing funding for the wall, although the White House has called the plan a non-starter. Crude oil prices were up Wednesday, climbing to a two-week high on hopes the OPEC and its allies will start reducing output this month.
News Analysen Experten Kolumnen Finanzplanung. Das erwarten Finanzexperten Nach Kursverlusten: Setzt nun der "Januar-Effekt" ein? Apple verfehlt Umsatzerwartung für Weihnachtsgeschäft deutlich Vontobel: Will you regret if Genting drops to RM5. Or if price flies back to RM8. I'm not an expert trader. But I know ultimately the decision is one of this. If you can confidently buy a sure-win stock which can cover your loss.
So that later you can sell at breakeven sell same price as your buying price or maybe a profit. You desperately need money now. Perfectly B4 cny maybe cut lose lor hope after 14th Jan won't drop so much. The Fed dialed back its plans to raise rates several times that year, moving just once, in December. The job market is still robust.
Federal Reserve Chairman Jerome Powell said the Fed will be flexible in its plan to hike interest rates. Let's have more fire sale prices to accumulate more!
This will give bear another chance to push price 5. It is a trader's market My Trading Adventure 7. Every 20 shares consolidate to 1 new share.
So from 2 sens the new shares will be 40 sens but share outstanding will fall to only 63mil instead of the current 1. Market cap is still RM25mil. If now you hold 20 lots of 2 sens, after consolidate you will have only 1 lot but at a price of 40 sens.
Then, the company will convert the RM1. So there will be 3. Total new share outstanding will be 3. In terms of balance sheet, the debt level will reduce to zero and share capital increased by RM1. Shareholders equity increased from -RMmil to RMmil at first this sound great. Let say given the big accumulated losses they have in their balance sheet, they could potentially not pay taxes for multiple years to come in the future. Again this sounds good. But here is the issue, these new investors creditors turned to equity investors have mostly the objective of recuperating what ever residual values that is possible.
Their intention was never to be a long term equity investors in the company. So there is 2 ways for them to get back their money. First sell the new shares that they will received. Given that the the new share price will actually trade at a premium to the new Book value 1. Second way for new investors to get their money back is via dividend. This translate to a payout of RM20 mil or RM0. So they might start to try to dispose of any assets that they can find willing buyers.
However the book value of the assets is still only 30 sens. In most cases distress company asset will actually be sold less than their book value. Basically for current shareholders, it doesn't actually looks that great. In distress companies you can make money by buying the distressed debt from the current creditors most of them will be willing to sell it at a steep discount.
Its actually hard to make money from buying equity. That being said it all depends on the restructuring negotiation between Perisai and its creditors. The example that i gave above is just a plain vanilla example. It could be that the new shares to creditors would be listed at a discount bad for equity shareholders because it would just means more dilution. As of 7th Dec there was still no update on the restructuring plan.
The consolidation should be 1: Imagine those still holding from above RM 1 now hugh loss.