Yes, i am sure most of us understand the "theory". I was also in FLX prior to the 10:1 consolidation but sold out 2 years later, doubling my money but alas, also missing out on the greater returns that followed. Ah well...
Never the less, the evidence of consolidations as i have seen them (over decades), is that they are in the short to medium term negative for shareholders. It is certainly (much) worse for shareholders when this happens in down trending or unstable markets (and less worse or negligable in booming markets). Felix was at the start of a boom in coal so was probably an exception. From memory FLX too quite a while to rise in SP and only really started when a takeover was in the offing so this again changes the ballgame. If SEN was subject to a takeover offer it's shareprice would also rise regardless of any consolidation.
by the way, i do not want nor expect a takeover for SEN. I also expect it may require Australian Government approval which may not be given unless takeover from another Australian Company.
SEN Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
