sp price, page-22

I agree with you Strat and your TAM example tends to endorse my disquiet with the whole business of share consolidation.

TAM did 1=30 and no doubt told their shareholders this was a necessity to get large backers on board which patently has not happened and the sp is reflecting that.

Focus already have a large backer on board and therefore if we are to swallow the reasoning for consolidation,they have no need to,and yet I am certain that somewhere down the road consolidation will raise its ugly and uneccessary head to the detriment of shareholders.

Why to their detriment? Surely nothing changes in the grand scheme of things does it Baz? I mean if Focus do a 1=30 obviously ones shareholding gets depleted but the same percentage rise in the sp keeps the status quo doesn't it?

Well yes that is the theory.
Nevertheless in practice the doubling or tripling of a 2 to 3 cent stock on the release of excellent news,(even when billions of shares are in circulation) always seems to be achieved with far greater ease than when the sp starting point is at a much higher figure pre the release, with far less shares in circulation, and the latter almost without exception inexorably drifts southwards after the initial euphoria until joining or -more often than not- passing the original sp mark leaving the now somewhat disgruntled shareholder holding vastly less shares than originally, whilst staring at a sp that is not helping his/her confidence or blood pressure one iota.

Continental Coal is another prime example of many that do exactly that!

So in the case of Focus, why would they consolidate when they already have the huge backer they need in Shandong, and there seems to be little or no credible or proven other reason to necessitate such a move, and in fact,more often than not,does nothing to improve shareholder value?

I wish I had or could fathom the answer to that question,because certainly in the position that Focus Minerals finds itself in with Shandong on board, I can see no reason whatsoever for shareholders to be put through that particular wringer, and yet still, strangely, I feel they just might!

Other thoughts would be appreciated.