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The stock price crash was due to his margin call and unfavorable acquisition rather than anything else. The company SBB is not the crucial factor, the fact that the company is now consolidating resources by scraping the acquisition deal and the exiting of HeiTech Padu is a very good sign. With the company's sound fundamentals and termination of shareholders dilution, there has never been a better time for whoever that is eyeing a substantial stake or even takeover of this company.
The company is doing SBB to cancel their treasury shares which is good for existing shareholders because having less issued shares means the value of existing shares increases, with lesser shareholders to share the pie.
Target Price Downgrade on Higher Gearing:
MBSB Research reduced its target price for Zetrix AI Berhad, pointing to a 91.7% surge (RM408.3 million) in short-term loans and borrowings, primarily driven by Islamic Medium-Term Notes used to fund capital-intensive blockchain and AI initiatives. The rising leverage prompted analysts to adopt a more conservative valuation multiple.
With the current management in charge investors have no confidence in the company despite having a golden rice bowl. The proposed name change can't hide the facts that the company is badly managed.
Although SBB is good for shareholders but taking on debts to do so is never prudent, especially when the majority shareholders are not supporting the company's share price themselves. Even more puzzling is their action of converting their warrants at a significantly higher price than buying from the open market.
Overall if all the majority shareholders lack the confidence of buying their own company at such distraughted price, no amount of words about its intricate value carry much weight.
All technology stocks are climbing except Zetrix. The management is so busy constantly buying and selling on a daily basis rather than focusing on the business. This kind of boss doesn't give investors much confidence.
