Publicité

SBM Holdings – Share price

23 novembre 2016, 10:59

Par

Partager cet article

Facebook X WhatsApp

lexpress.mu | Toute l'actualité de l'île Maurice en temps réel.

In article 3 of this series we asked if the directors had a plan to improve the share price which had fallen from Re 1.03 on 11 December 14 to Re 0.65 on 22 March 16.

The share price has barely improved since, despite the reverse share split announced in May 16 (Rs 6.90 on 17 November – equivalent to Re 0.69 before the split).

The reason given for the reverse share split was “to further enhance the marketability of its shares to a wider range of institutional and professional investors and other members of the investing public”.

This has not been the case until now as the volume of trading has fallen from an average of 7,398,727 shares per day in the 11 months before the reverse split took effect to 473,188 shares per day (equivalent to 4,731,880 shares before the reverse split) since.

So, despite the spin, e.g. trending favourably, net profit up 75%, the share price is not recovering and the volume of trading is down.

Maybe this is the time to put the same question to the Board: “Do you have a plan to improve the share price?”

And as spin has not worked, try telling it as it is!