Found this interesting. Only connected to EMV because of our...

Found this interesting. Only connected to EMV because of our beautifully low number of shares on issue, apologies if it doesn't add much specifically to our company. Just some light Sunday morning read for those interested...

Why Shares On Issue Matter

Shares on issue, also known as outstanding shares– is one of the last metrics you’d consider when buying or selling a stock – But here’s why it matters. By definition, shares on issue refer to the total number of shares a company has allocated and distributed to shareholders. This metric is more useful towards the smaller end of town – say, $500 million market cap or less. Why does it matter?The total number of shares outstanding represents the supply available for investors to buy and sell. With all else being equal, a higher number of outstanding shares means a larger supply. If you’re a stock with tens of billions of shares on issue – it often feels like never ending supply and constant churn. The biggest culprit is probably Sayona Mining– An embattled $350 million market cap lithium producer with 10.2 billion shares on issue. From the share price chart below, you can see that: Trades within a narrow range pretty much every single day Experienced a strong rally between 14-20 Feb (associated with a bounce in lithium prices and company-related announcements) Gave back all the 14-20 Feb gains (up ~90% in five days and down ~44% in the following five days) Sayona daily price chart (Source: TradingView) How did Sayona arrive at 10 billion shares on issue?Look no further than its capital raise history: 30 May 2023 – Raised $200m at 18 cents 7 Mar 2023 – Raised $54.9m at 31.5 cents 27 May 2022 – Raised $189.8m at 18 cents 4 Oct 2021 – Raised $100m at 14.4 cents 12 Jul 2021 – Raised $45m at 7.5 cents 23 Mar 2021 – Entitlement offer for $20.4m at 3.2 cents Another good example (but in a more positive lens) is Jupiter Mines– A $520m manganese producer with almost 2 billion shares on issue. Likewise, the stock is really good at trading within a narrow range for a very, very long time. Jupiter Mines daily price chart (Source: TradingView) In late March, South32 shut down its GEMCO operations after key infrastructure was destroyed by Tropical Cyclone Megan. The GEMCO operation supplies approximately 10% of the global manganese market. It took an extreme supply disruption to move the Jupiter Mines share price. But encouragingly, the stock is up almost 50% since the disruption. The bottom line– You should always be mindful of the number of shares on issue for smaller cap companies. When this figures starts venturing into the billions – You can expect a stubborn share price.

What can you expect when the company doesn't even have 100m shares on issue!?


Cheers