BMB 0.00% 2.5¢ balamara resources limited

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  1. 6,418 Posts.
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    The market cap. is the important thing.

    A doubling of the market cap. when the share price moves from 2 to 4 cents is exactly the same thing as a doubling of the market cap. when the share price moves from 20 to 40 cents. The SP will be re-rated just as easily post consolidation as it would have been pre consolidation. A re-rate may in fact be easier, if the day trader sell down post news element is somewhat diminished.

    Post consolidation, the only difference will be that funds/institutions will be more interested and the stock will be less attractive to daytraders, who sell for a .001 profit and/or who sell out 3 days after good news.

    I don't think we will have no day traders post consolidation, just that the stock will be less attractive to them so they may look elsewhere.

    Obviously the possibility of large funds/institutions buying on market would be a huge bonus, should that ever eventuate.
 
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