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AIG

AIG today rocket , so far $19.5 , expected today will end @ $21.. hope so..

 

As I came to know...Comfort did that, so is OCBC...splitting shares (breaking up into more shares) is better for shareholders. just a guess...AIG shares can end much lower after awhile.

keepnosecrets      ( Date: 02-Jul-2009 11:55) Posted: Consolidation (shrinking the numbers) of shares is usually used as a trick to boost the new NAB or NTA of the consolidated shares because of prevaling heavy book losses which could wipe out the equities of the company if based on the old share values.  In other words, negative equity.  After consolidation, lesser shares to back the assets/liabilities, management might try to come up with right issues and ask the shareholders for money to finance the business. Normally rights won't come that fast, but it will if business does not pick up. So consolidation is bad.  On the opposite scale, direct splitting shares (breaking up into more shares) is better for shareholders.

 

You get the right point.

keepnosecrets      ( Date: 02-Jul-2009 11:55) Posted: Consolidation (shrinking the numbers) of shares is usually used as a trick to boost the new NAB or NTA of the consolidated shares because of prevaling heavy book losses which could wipe out the equities of the company if based on the old share values.  In other words, negative equity.  After consolidation, lesser shares to back the assets/liabilities, management might try to come up with right issues and ask the shareholders for money to finance the business. Normally rights won't come that fast, but it will if business does not pick up. So consolidation is bad.  On the opposite scale, direct splitting shares (breaking up into more shares) is better for shareholders.

 

Tend to mislead those investors in coma since before the crisis.... wake up already still think the price no much movement !!haha...just kidding.

 

Consolidation (shrinking the numbers) of shares is usually used as a trick to boost the new NAB or NTA of the consolidated shares because of prevaling heavy book losses which could wipe out the equities of the company if based on the old share values.  In other words, negative equity.  After consolidation, lesser shares to back the assets/liabilities, management might try to come up with right issues and ask the shareholders for money to finance the business. Normally rights won't come that fast, but it will if business does not pick up.

So consolidation is bad.  On the opposite scale, direct splitting shares (breaking up into more shares) is better for shareholders.

 

Fund raising purposes.

Yes, it is.

CHUAHY      ( Date: 01-Jul-2009 15:44) Posted: Anybody can share some advice usually what is the rational behind for this "share consolidation" ? From the comments here, it looks like this "share consolidation" is more of a bad news for the investor ?

 

Is this made known earlier or sudden consolidation ?

 

Consolidation allows the price of the new shares to be traded further down.  One of reasons is usually to open for impairments or writeoffs.

 

Some listed companies that are listed here, does consolidated shares and usually after awhile, it end lower...this AIG share consolidation 20 into 1, can it be the exceptional ?.

 

Jia lat , now the Q price @ $17.8 = $0.89 ( non split ). Still thinking this stock price > $10 who want to buy , some more nearly bankrupcy one , will wait $5 to level it ..

 

Coy may consider ways to “shore up” its share price, as the current stock price doesn’t reflect the underlying value of the company. Share consolidation, or the bundling of several stocks into one, is not one of the options being considered by the company’s board. That does not necessarily change the liquidity,as at times d shares are very illiquid, not liquid.

Moreover, once upon a time, it is d global Insurance Giant, footprints everywhere. Now, comparing with its rivals, be it financing institutes n other insurance agencies ard d world, its share price is really miserable as compared to d others which at least a 2 digit share price. Ha ha, how d board can swollow, face value loh.

Above just AK guesses, for sharing only.

CHUAHY      ( Date: 01-Jul-2009 15:44) Posted: Anybody can share some advice usually what is the rational behind for this "share consolidation" ? From the comments here, it looks like this "share consolidation" is more of a bad news for the investor ?

 

Tonite no eye to see , cannot sell better dun see scare later heart attack , yesterday dropping like hell hopefully tonite won't drop > 50%..god bless me.!!!

 

Anybody can share some advice usually what is the rational behind for this "share consolidation" ?

From the comments here, it looks like this "share consolidation" is more of a bad news for the investor ?

 

My broker called me this afternoon regarding this issue. He was puzzle as well bcos he received the memo from office late noon today.

 

Why no news mention that aig price drop last night due to revert stock split but was due to other financial issue ..any expert can clarify...thx

 

Hi all.

I just call my broker UOB kay hian, and they claimed that i can only buy and cannot sell the share the until they settle the convertion issue with US side. It will take few days.......

so, i can only see the price dropping and doing nothing. Too bad.

If this happen in other broker?????

Please check with your broker about this.

 

Actually i invest this stock is hope that it can rebound back to 50/share for long term maybe @ 10 or 15 yrs but now hopeless already as quite impossible to hit 1000/share in long term. Now if can cover back lost in long term is good already.

 

I sold mine to cut lost when I saw the headline on poems. It's so uncertain for the situation now, such a big news and yet it's not highlighted on reuters yesterday until I saw the headline flash on poems.

I guess the US government want to do this is bcos there are large amount of shares floating outside that make the shares look cheap in terms of per share.

 

USA Government own more than 80 % of AIG. So AIG private liguidity is left with 20% only.

This mean where share value or interest is left with 20% only. If USA government keep on pouring money to AIG then AIG would become worthless entity.

AK_Francis      ( Date: 01-Jul-2009 11:21) Posted: No hassle if AIG relisted on both AIG, mother n AIG 20, son. Otherwise, need much cash to fullfil d odd lot liao. Or clear it with much lower market px during trading day. keepnosecrets      ( Date: 01-Jul-2009 10:49) Posted: Based on the notice of reverse stock split (LPPL means conslidation 20 to 1), ex-date 1st July 2009, your 1500 shares will become 75 shares effective tonight.  But don't worry, ex-price should now be US$23.20 per share if the market prices it correctly.

 

thanks for all the info provided. So your advices are to monitor the price tonight 1st? wow..this issue make me lost quite a sum...actually thinking to cut loss...but another side of me saying that this is for long term...so......

AK_Francis      ( Date: 01-Jul-2009 11:21) Posted: No hassle if AIG relisted on both AIG, mother n AIG 20, son. Otherwise, need much cash to fullfil d odd lot liao. Or clear it with much lower market px during trading day. keepnosecrets      ( Date: 01-Jul-2009 10:49) Posted: Based on the notice of reverse stock split (LPPL means conslidation 20 to 1), ex-date 1st July 2009, your 1500 shares will become 75 shares effective tonight.  But don't worry, ex-price should now be US$23.20 per share if the market prices it correctly.