Capital Restructure - Aussie Stock Forums

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  1. #1

    Default Capital Restructure

    Hi all,

    Can anyone give some opinions in regard to a small time investor buying into a company with a large number of shares on issue and then the company at a later date goes for a capital restructure of say 1 for 10.

    I understand the concept of trying to create shareholder value but as a small holder say going from 30,000 to 300 shares there would have to be a dramatic increase in value to be of any real benefit.

    1. Should a small investor stay away from these potential situations and is there any way of predicting what companies may go down this road?

    2. What is the easiest way of finding out how many shares and options a company has issued?



  2. #2

    Default Re: Capital Restructure

    No your share price at 10:1 would be then 10X the price of the original share price.No difference to you.

  3. #3
    Stop_the_clock's Avatar
    Join Date
    Apr 2006

    Default Re: Capital Restructure

    It does represent bad management when companies continue to issues shares and more shares and more shares and then have to restructure...I would stear clear till way after the restructure has occured. Hopefully you get management changes too at the point of restructure!

    I have been through 2 restructures and both compaines went south after it occured.

  4. #4

    Default Re: Capital Restructure

    Thanks guys,

    Some friends had similar experience to Stop the Clock, share price going south and a smal parcel of shares that was worthless.

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