The theory of a consolidation being of benefit to holders is that it attracts the investment funds to a company. A reverse split is usually followed by a hiatus when the s.p. does little or nothing until the broking firms wake up to the benefits of a stock. It made me very frustrated when I tried to influence the analytical side of my brokerage to follow coal stocks during the boom years. My two standouts were Excel Coal at a low of $1.88 (this was the all time low on the day of listing and I bought these shares for clients). The second was Felix at under $2. Both were taken out at a multiple of this price. I urged the firm to cover these stocks with research. They did at a much higher price but missed the really big gains!
SEN Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
