Many investors who looked at their stockpot after the long Pentecost weekend on Tuesday got a fright: stocks of the Chinese electric car maker Byd, who had quoted the equivalent of around 45 euros on Friday, were only noted at around 15 euros on Tuesday. A price slide of 66 percent. The share, which has almost tripled in many German investors, whose share price has almost tripled in the past 12 months, caused a good moment of fright.
But investors can take a deep breath for the time being. The discounts are purely optical. The background for the course of the course is not the bankruptcy of the company or new ideas from US President Donald Trump, but a new profit distribution plan that was decided during the BYD general meeting last Friday.
With the help of bonus shares and a new dividend policy, the Tesla rival wants to tie shareholders more closely and attract new investors. The plan stipulates that investors are booked for ten additional bonus shares for ten BYD shares. In addition, twelve other new shares, so -called capitalization shares, are to be issued from the company’s capital reserves. This project was already priced in the share price today.
Specifically, this means that an investor who held 10 BYD shares before the capitalization measure will hold 30 shares in the company in the future. So the plan is equivalent to a stock split in a ratio of 1: 3. Since the new shares will only be booked to the depot in a few days, investors had to live on Tuesday with a price slide of around 66 percent
But nothing has changed in the good performance of the BYD share of the past few months-even if sales in Germany recently went very slowly and BYD had to reach into the trick box to overtake Tesla in Germany
. Shareholders can take a deep breath and wait until the number of their BYD shares has tripled in the depot.