GroundedKestrel wrote:Thank you Leon but what does it mean when you say the share is reaching its market capitalisation limit?
Where did you see that?? A limit??
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GroundedKestrel wrote:Thank you Leon but what does it mean when you say the share is reaching its market capitalisation limit?
First Guy wrote:Thanks Leon.
Can expect decent growth from VFIN by not anything magical. VFIN already is almost near the capitalization limit like SAMP. Rating may be already reflecting that. Could it go for a rights?
GroundedKestrel wrote:First Guy wrote:Thanks Leon.
Can expect decent growth from VFIN by not anything magical. VFIN already is almost near the capitalization limit like SAMP. Rating may be already reflecting that. Could it go for a rights?
pathfinder wrote:First Guy wrote:
I didn't mean the stocks as weak. I meant those 'weak' holders of the stock. As I mentioned in the SDB thread as I remember, there are some who get into a speeding bus, panic and sell when it stops shortly afterwards. I find these to be different to long term investors and technical traders but those who just try to join the bandwagon. They are capable of taking a stock high and bring it low as well.
Correction happens when stocks move from shaky weak hands to stronger hands.At the moment VFIN and PARQ are showing real time examples.
First Guy wrote:GK - it's a regulatory requirement. it's not really a limit rather a minimum requirement that should be maintained. VFIN might be required to raise more capital if it gets too close, I think. So growth will not be possible as much as one that has comfortable levels (relatively)
Leon wrote:First Guy wrote:GK - it's a regulatory requirement. it's not really a limit rather a minimum requirement that should be maintained. VFIN might be required to raise more capital if it gets too close, I think. So growth will not be possible as much as one that has comfortable levels (relatively)
Your rough assumption FG??
Going for a right??
First Guy wrote:Leon wrote:First Guy wrote:GK - it's a regulatory requirement. it's not really a limit rather a minimum requirement that should be maintained. VFIN might be required to raise more capital if it gets too close, I think. So growth will not be possible as much as one that has comfortable levels (relatively)
Your rough assumption FG??
Going for a right??
DP companies haven't gone for many rights, have they? Both SAMP and VFIN are near the minimum requirement. SAMP was recently downgraded. It would affect it when going for a debt issue.
As for capital, rights is one option but also it can make some bumper profits and retain it. SAMP managed by issuing scrip dividends partly.
Other options are, merger? I don't think VFIN will go for PP.
But I think they will somehow manage at the moment but it will prevent them from making maximum use of growth opportunities.
GroundedKestrel wrote:FG - Thank you for clarifying. You mean that there is a minimum level of liquidity needed as per regulations and VFIN and SAMP are losing that because of institutional and company investors buying their their shares? Hence they need to subdivide or issue rights to maintain liquidity as per the minimum requirement?
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