It is true that lots of investors present your argument re: the number of shares on issue - I have actually lost count of the number of times I have been given this lecture.
However, others argue that the big institutional investors will not invest in companies with shares measured in the Billions (as is the case with at least two Perth Basin rivals I know from previous investments) and I have been told this is the reason why fast expanding companies will do a share consolidation - the last one I remember was NWT which should launch Australia's 1st commercial satellite and whose share numbers (I think) were measured around 7 Billion prior to consolidation. Since then, they have accessed millions of dollars from big US and EU companies, as far as I am aware.
Still, either way, better to be invested than not, as if you are not invested, this argument means nothing!
All the above is my personal opinion. DYOR.
GEV Price at posting:
19.0¢ Sentiment: LT Buy Disclosure: Held
