"In my opinion a lot of serious investors not only look at the sp but also the market capital which is a better indicator to how much a company is considered by the market to be worth."
True, and pre-consolidation the share price structure meant the value of the company at ~ $9M could only jump to ~ $11M... or fall to ~ $7M. The share price could not reflect a $10M market cap. How can you gauge the market's view of a company if the increments do not exist?
It's like am auctioneer selling a house but only allowing bids of $100K. What happens if a house is worth $450K? You'll end up with $400K or $500K... the market value will never be exposed.
Furthermore I don't see much in the way of value creation for consolidations, in essence it's like stating that 100 cents has been turned into a dollar - hooray!
Ann: Consolidation of Capital, page-97
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Mkt cap ! $94.81M | |||
| Open | High | Low | Value | Volume |
| 19.5¢ | 19.5¢ | 19.0¢ | $212.6K | 1.118M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 7234 | 19.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 19.5¢ | 260069 | 3 |
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