The worst inflation in the World in Zimbabwe (Gazillions of percent – I lost touch) has created thousands of penny share holders in Zimbabwe. I have a client with 7,000 shareholders, 5,000 of which own shares of a value less than US$200. There are lots of companies like this in Zimbabwe.
Its not in the investors interests to own these shares, neither is it in the interests of the listed company that those shareholders own shares. Law in Zimbabwe still requires hardcopy delivery of proxy material although this is being ignored.
To drill this down further in case you think this is OK: 3,800 shareholders own in aggregate shares of a value less than US$60 each. Thousands of shareholders own shares of less than US$10 each in aggregate each.
I doubt a retail shareholder strategy will add any value – the company may have a rights offer. Unnecessary cost, time and effort.
ANY IDEAS?