I think you hit the nail on the head as to why the SP isn't...

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jbass

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05/05/21

12:41

Post #: 52952765
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Originally posted by Obelix999: ↑

I suspect this is what's holding the SP down. As far as I can tell (and it's hard to be sure) the 40 mil performance shares have pushed the 'free float' - the % of shares readily tradable, below 50%. Once management gains a controlling interest they can funnel the entire company into their own pockets, legally and with no recourse for ordinary shareholders. I've seen it happen.

What I'm describing is not a prediction but a worst-case scenario. I have been buying recently because there appears to be a great little business in the making here. But if I was entrusted with clients' money I wouldn't put it here because of the potential for abuse. Unfortunately Malaysia has a reputation for punching above its weight for corporate malfeasance.

What I would like to see is the second factory funded by offering 10% of the company + a board seat to a big pension fund or other insto. That would calm a lot of brokers' nerves. Ask yourselves why the share register is largely devoid of independent voices.

I think the business itself is sound, growing well, and I don't see demand for nitrile gloves falling off a cliff. But if there is another big allocation of shares to directors I will be out and advise others to do the same.

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I think you hit the nail on the head as to why the SP isn't going to increase regardless of the financials.

Depending on what freebies management reward themselves with at the next AGM will determine whether I sell or buy more. The business is pumping and expansion is exciting, I just don't know whether I trust managements greed.

VIP Price at posting: 5.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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