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Yep, bit of a surprise in the ann, but the number of shares on...

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Amanath17

171 Posts.

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31/08/21

14:18

Post #: 55715174
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Originally posted by hazza25: ↑

I am not at all sure why anyone would wish the share price lower.
Anyway, I was doing some deeper looking last night. I think one of our problems with the weak share price and disappointing response to the preliminary report is the expansion of the number of shares on issue.
In June/July 2020 there were about 500 Million shares on issue. As of about now there are 1.1 Billion shares on issue.
One is going to have an awful lot of people with huge expectations to get on board (which we obviously do not have) or profits need to double at a minimum for the price to remain the same.
We all hope that profits will flow but while they are paying for companies and services with the issue of shares then you can average down as much as you like but will just be throwing good money after bad ( In my opinion)
I will remain patient but doubling the size of the register just makes the value proposition harder.
And, don't get me started on the 'incentive options'. Might be a good idea and maybe necessary to attract or retain staff but that just adds another overhang of some 100's of millions of shares.
Share price recovery may be more difficult than we seem to think.

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Yep, bit of a surprise in the ann, but the number of shares on offer are the real issue here.

TNT Price at posting: 24.5¢ Sentiment: Hold Disclosure: Held
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