Haha - He Who Dares, Wins!
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How low does the share price have to get before they do another share consolidation? Any ideas?
Maybe that’s how they will get this stock to ‘rocket’.
$50M capital return from the property sale.
Destroy 100M shares and pay each share holder 50c per share.
There will only be about 75M shares left.
So even if the market cap drops to $300M it will be $4 per share!
The Board are acting in a manner that may be okay if they had a lot of runs on the board and we could trust them. However they have the exact opposite of this, years of value destruction and zero shareholder trust. No doubt there are some commercial sensitivities around some things, however the Board needs regular and more in depth communication with shareholders until such time as they have proved themselves.
I have passed my views on to them and encourage others to do so too.
No there is another way.
You can do it as part of a capital return when you sell an asset.
NZO.NZ did it when they sold Kupe to Genesis a few years back. It effectively becomes a tax free dividend - IRD won’t normally tax it if you are returning cash from an asset sale.
I was only kidding about them destroying 100M shares though. They would not want to reduce the s/o by that amount as it would impact liquidity.
I believe Auckland Airport did a similar style capital return years ago too.
You guys are doing a great job of down ramping the stock, ****ting on the management, board and Chair. Keep it up and we'll all be broke soon enough, you've even got NBR interested in this. Brilliant, awesome strategy.