Asia Broadband Inc (OTCMKTS:AABB) Stock Continues to See Profit Booking: What’s Ahead?
The reduction in the number of outstanding shares can result in the stock of a company going one way or another but unfortunately for Asia Broadband Inc (OTCMKTS:AABB), it had a negative effect on its stock.
Yesterday, the company announced that its board of directors and the higher management concluded the retirement of as many as 120 million restricted common shares. The shares were retired to the treasury. It is a significant development for the company, considering the fact that Asia Broadband retired 13 million extra outstanding shares in the company than had been announced previously in May this year. However, in this regard, it is perhaps important to point out that the company expects to retire more shares in the future.
It is a part of Asia Broadband’s initiative to unlock more value for its shareholders. When the number of outstanding shares gets lower then it usually leads to a spike since the shares become rarer. However, the company’s actual shareholders were not particularly thrilled with this move from Asia Broadband, and the stock actually tanked by as much as 10% yesterday.
It is not going to be interesting to see if the stock can actually make a recovery over the coming days. Asia Broadband also noted that later on this week it is going to be able to provide an update with regards to the progress that has been made in the development of its cryptocurrency exchange project. It is one of the more ambitious projects at Asia Broadband at this point.
Asia Broadband (AABB) Stock Pulls Back 40% From The Peak: A Good Opportunity?
The Asia Broadband Inc (OTCMKTS:AABB) stock has been in considerable focus among investors for most of the year and the stock has garnered strong gains as well. Although the Asia Broadband stock is still up by as much as 133% so far in 2021, it has corrected sharply and declined by 40% from its May-end high of 24 cents a share.
However, the latest correction might also prove to be an opportunity for new investors and hence, it could be a good move to take a look at recent developments. The company has moved into the crypto space recently with the launch of its gold-backed AABBG token.
On Tuesday, Asia Broadband announced that it has put plans in motion that is going to see the company expanding its foot print into Central America by pushing demand for its AABBG token. The company is going to start this project at El Salvador.
In order to achieve its objectives, Asia Broadband is going to work with some of the major retailers in the country. The aim is for those retailers in El Salvador to accept payments that are made by customers in AABBG tokens. Retailers are going to be offered handsome discount incentives and commissions if they do start accepting the AABBG token.
While this was an important announcement from the company, there was another key development that took place last month. On May 27, the company announced that the Board of Directors at Asia Broadband and the company’s management approved a move for retiring and returning as many as 107 million units of restricted common shares to the treasury.
The reduction in the number of shares to such a degree could be seen as a welcome move by many shareholders and could also lead to more optimism about the Asia Broadband stock from new investors.