The number of shares on issue is has no baring whatsoever. Its an arbitrary number. Its only bad news if they issue MORE shares as it dilutes earnings.
If MLX wanted to they could do a 1 for 10 share consolidation and all that would happen would be that the share price would go up by 10 times and the number of shares you own would divide by 10. It doesnt change the EPS, nor the multiple the stock trades on, it doesnt effect debt, infact it doesnt effect anything at all.
If MLX has a current NPAT forecast of say $100m, well than yes the actual EPS would be higher if the number of shares on issue was less, but that doesnt make any sense. That is the case for every single company listed on the ASX. If TLS had the same overall earnings, but had 5b shares listed instead of 10b, then obviously the share price would be higher.
Look at FMG, there was 280m shares on issue, they did a 10 for 1 and now there is 2.8b shares on issue. It didnt change earnings, debt, profit etc. It caused the share price to divide by 10, but you had 10x the number of shares as before.
As long as the number of shares on issue stays constant, it doesnt really matter what the number is, whether it be 1b, 10b or 10 shares.
The number of shares on issue is has no baring whatsoever. Its...
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Last
40.5¢ |
Change
0.005(1.25%) |
Mkt cap ! $367.0M | |||
| Open | High | Low | Value | Volume |
| 40.5¢ | 41.0¢ | 39.5¢ | $348.2K | 866.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 50 | 40.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 40.5¢ | 34179 | 2 |
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| Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
| MLX (ASX) Chart |