Myer’s Unmarketable Stock Grows

Half of Myer’s shareholders hold ‘unmarketable’ stock. A less-than-marketable parcel of shares is a parcel of shares with a total value less than $500 (making the cost of selling shares outweigh the benefit of sale). According to the 2017 Annual Report, 17,150 shareholders (accounting for 35 percent of the registry) had unmarketable parcels based on the 77 cent share price.

Based on Monday’s share price of 38 cents, 23,467 investors would now have parcels that are considered too small to sell with another 16,173 investors holding parcels between $380 and $1900. The price drop means that at least half of Myer investors are stuck with unmarketable shares. In 2009, stock was listed at $4.10 a share, showing just how far the department store has fallen in less than a decade.

It is not uncommon for companies to buy back unmarketable shares however Myer has not commented on whether this is an option.

Speculation is rife about Myer’s next move, with David Jones denying a potential merger is on the cards and Myer denying voluntary administration is being considered. The search for the next Myer Managing Director and CEO continues.

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