Homepage
PR Newswire
04-07-2023, 09:45 PM
(This post was last modified: 04-07-2023, 09:56 PM by dreamybear.)
While welcome, minority shareholders may not be better off just by having more guidelines/regulations. For e.g. : Stock A has always traded around $0.50 - $0.75 with low valuations(P/E, P/B), low dividend yield for X years. An offeror comes along and offer $0.90 which IFA deems not "fair and reasonable" because of NAV considerations, etc.
In this scenario, it may be better for a shareholder to accept the offer and move on ? I think at least the shareholder now has a choice ?
If indeed so, I was thinking ....
1) one of the deeper issues cld be is the mgmt doing anything to address low valuations even if it cannot dictate the share price e.g. participation in investor roadshow, engaging with analysts, active participation in social media, SBB etc ?
2) Isn't the BOD supposed to be creating value for shareholders ?
If a company IPO at high valuations and privatize at low valuations, it's like shorting its own stock ???
---------------
Industry lauds new IFA guidelines, but says more must be done to address issue of independence
https://www.straitstimes.com/business/in...dependence
"...Mr Lee said the perennial problem of low valuations and poor liquidity in the local stock market cannot be resolved by legal or regulatory means.... "
In this scenario, it may be better for a shareholder to accept the offer and move on ? I think at least the shareholder now has a choice ?
If indeed so, I was thinking ....
1) one of the deeper issues cld be is the mgmt doing anything to address low valuations even if it cannot dictate the share price e.g. participation in investor roadshow, engaging with analysts, active participation in social media, SBB etc ?
2) Isn't the BOD supposed to be creating value for shareholders ?
If a company IPO at high valuations and privatize at low valuations, it's like shorting its own stock ???
---------------
Industry lauds new IFA guidelines, but says more must be done to address issue of independence
https://www.straitstimes.com/business/in...dependence
"...Mr Lee said the perennial problem of low valuations and poor liquidity in the local stock market cannot be resolved by legal or regulatory means.... "