This is where the share price of an unprofitable company keeps on falling and management keep on raising survival money at lower prices.
This issue of new shares temporarily preserves the market cap but equity per share is diluted creating an even greater weight on the share price as those who partake in the raise scalp for a quick 20% gain.
Eventually the company recapitalises eg 1:10 reverse split to support the share price and avoid appearing as a penny dreadful. But the share price then reverts back to it’s downtrend.
As I have been writing since $14, this is inevitable.
The ASX is littered with such companies with billions of shares on issue.
All IMO. Don’t shoot the messenger bearing gifts. Tis the season to be giving. Ho Ho Ho!
Dilutionary Death Spiral
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Last
$1.14 |
Change
0.020(1.79%) |
Mkt cap ! $1.284B | |||
| Open | High | Low | Value | Volume |
| $1.14 | $1.16 | $1.13 | $47.93M | 42.03M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 8 | 179007 | $1.14 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.14 | 555537 | 3 |
View Market Depth
| Last trade - 16.10pm 31/05/2024 (20 minute delay) ? |
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Last
$1.15 |
Change
0.020 ( 1.16 %) |
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| Open | High | Low | Volume | ||
| $1.14 | $1.15 | $1.13 | 11515103 | ||
| Last updated 15.59pm 31/05/2024 ? | |||||
| ZIP (ASX) Chart |