Capital Raising, page-25

Since we're rolling with the Capital Raising thread for a bit I thought I'd get some thoughts from you all.

First let me be straight up and acknowledge two points: 1) Shares on issue doesn't necessarily matter in the grand scheme - case in point is BHP with 3.2 billion+, and 2) Consolidation can have negative impact on share price and/or price momentum.

With that out of the way, how do people feel about the idea of a consolidation if it were to be done soon, while we're in the good news end of town? A 10:1 consolidation would see fully diluted shares on issue at roughly 370 million at a value of, give or take, 70-80 cents per share. Pros are that we'd move well and truly into the land of 0.5 cent price movements, and future capital raisings would have only the most minor dilutive impacts. It also takes away a certain psychological argument that down-rampers regularly trot out - "oh but what about the 3 billion shares..."

Cons, well I've already mentioned that above.

So, thoughts in general? Please note that I offer this discussion point mostly agnostically at this point.