Australia's largest stock trading and investment forum Australia's #1 stock forum

BP8

Click for more information

0.00%

0.1¢ bph global ltd

Personally, I think 5-1 is about right.More extreme...

First 3 Last

Share
Profile

Follow
Protagonist

6,848 Posts.

1326

28/04/24

11:58

Post #: 73542772
Share

Originally posted by camban: ↑

What a strange consolidation 1 for 5 is. It won’t even bring them to a whole cent on a post-consolidation basis - it’ll be ~390m SOI @ a notional 0.5c (using today’s 0.1c share price)

I could certainly understand 1 for 100 perhaps, bringing SOI to under ~20m @ a notional 10c.

Imo if you’re going to do these corporate actions/reverse splits then you might as well do them properly. A one-off massive reduction in outstanding shares would create greater scarcity, greatly improve the look of the capital structure, make managing the share register easier, and discourage scrappy parcel trades that contribute nothing but a continuation of the penny stock feel to this company that SCU created. I think 1 for 5 is utterly pointless and will only see this trade back in a downwards direction.

Expand

Personally, I think 5-1 is about right.

More extreme consolidations tend to trigger bigger sell-offs. This brings the SOI down to a level needed to attract new investors.

BP8 Price at posting: 0.1¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

First 3 Last

Add BP8 (ASX) to my watchlist