yeah this has been the concern for a while now. but hey, divert...

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adamski81

354 Posts.

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05/05/21

16:59

Post #: 52962023
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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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yeah this has been the concern for a while now.

but hey, divert all the attention away from ripping the guts out of the accounts by the options/performance rights and drip a dividend down to keep the plebs happy.

great business. not so great public relations. questionable management intentions.

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

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