Wow, looking back at my comments below (16 September 2016) I cannot believe I did not take my 1c per share (at that point R40 for every 4,000 shares held) and run. So, everyone have now lost even more money.
I was there, voting against the share consolidation and I was told that day that the reason for the share consolidation was that the wild swing in share price (eg: at that point 2c and sold for 3c so 50% swing for the day). This apparently made it difficult to "do deals"???
I am so glad the swing in today's trade so far (27c to 15c = 44%) is not too big or an issue.
Do anyone know if they have paid the SARS liability yet? Although I am not sure where the money would come from.
Did anyone here attend the last AGM?
Posted 16 September 2016 - 12:37 PM
I see AFDAWN wants to consolidate the shares on a 40 to 1 basis.
I really hope everyone comes to the AGM and votes against this.
Currently the share price, for all practical purposes are 1cent. What this means is that the lot of us still holding shares cannot lose any more money. If you hold 4,000 shares @1 cent it is worth R40.
If we agree to the consolidation you will have 100 shares (4,000/40) @ the consolidated price of R40 (1 cent x 4000 = 40 cents x 100).
My problem with the consolidation is that it will mean you can lose more on your investment. As there is not really any good news to lift the share price from a consolidated value of 40c per share I will expect it to fall even further, even going back to 1 cent again. This will mean that your investment in 4,000 shares which currently can go below R40 rand will be worth: 100 consolidated shares @ 1 cent = R1.
So you have lost another R39 of your money by agreeing to the share consolidation.
Management must rather concentrate their efforts in improving the business and to start generating profits instead of finding ways for their shareholders to lose more money.
Management will most probably condemn this post again but I really don't care anymore. Have had enough of empty promises.
Hope to see all you shareholders who have had enough at the AGM.