Powell Max Ltd

Analysis for Ticker: PMAX

Powell Max Ltd is a financial printing company in Hong Kong that is using its own share registry as a personal money machine. The crisis is a mathematical death trap where the company is trying to hide a massive loss of value by erasing its own shares through a 1 for 10 reverse split. This is like a child having ten pennies, seeing they are only worth ten cents, and deciding to glue them together to call it a dime. It does not change the fact that the company is burning 8,7$ million Hong Kong dollars every day and faces a legal investigation from the Rosen Law Firm. The bleeding is critical because management has loaded a financial gun by registering 74,8 million shares that can be dumped on the market at any moment, which will dilute the existing equity pool into a mathematical fraction of its original size.