Ann: Voluntary Suspension-ODN.AX, page-49

First 49 Last

Share
Profile

Follow
D.D

3,161 Posts.

99

21/07/16

11:46

Post #: 18326166
Share

Originally posted by serena ↑

Are we talking in the same language?

We are talking about the consolidation ratio 10:1 compared to 20:1

Illustration A
Of course, if the current share price is $0.010, the consolidation will be 10:1 (i.e., 0.100/0.010). If you hold 100,000 shares, the current value of your holding = 100,000 x $0.010 = $1,000. Your shares will be consolidated based on 10:1. You will be given 10,000 shares at $0.100. The value of your holding after consolidation = 10,000 x $0.100 = $1,000. Of course, the value of your shares is the same whether before consolidation or after the consolidation.

Illustration B
But now, please assume that the share price is $0.005 instead of $0.010. The consolidation ratio will be 20:1 (i.e., 0.100/0.005). The current value of your holding = 100,000 x $0.005 = $500. Your shares will be consolidated based on 20:1. You will be given 5,000 shares at $0.100. The value of your holding after the consolidation 5,000 x $0.100 = $500

Illustration A: the value of your holding with consolidation ratio 10:1 is $1,000
Illustration B: the value of your holding with consolidation ratio 20:1 is $500

So please do not say that higher consolidation ratio is better than lower consolidation ratio. If you do not know how to do this simple calculation, how do you make your investment decision?

My friend = 1 + 1 = 2 and it could not be 10 or 1,000.

Expand

Much clearer now.
So with illustration B if the current SP is .5 and if I hold $1000 it's going to be $1000 after consolidation.
I never said that higher consol ratio is good.
I said that the ratio doesn't matter if you are currently not a substantial holder.
In addition .... with a higher consolidation ratio the number of shares on issue post consol will be slightly less. This will attract new investors.

ODN Price at posting: 1.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

BIT

HotCopper users blunt as Biotron sinks -35%; long-awaited COVID drug results same as placebo

OCC

Orthocell kicks off collagen-based dental bone repair product sales in Canada; eyeing next stop Brazil

As Nvidia cools, we're looking to Aussie AI

CBA breaks trading record on strong day for Aussie financials

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

LAM

Laramide sniffs prime Kazakh uranium, with agreement over 6000 square km land position

QML

Metallurgical testing shows saleable copper and pyrite from QMines' Develin Creek project

SBW

Shekel Brainweigh investor presentation webinar – the future of retail automation

PRU

Perseus Mining boosts stake in Predictive Discovery to 19.9% as latter's flagship project stalls

There are more pages in this discussion • 34 more messages in this thread...

First 49 Last

Add ODN (ASX) to my watchlist

Ann: Voluntary Suspension-ODN.AX, page-49

Top Stories

HotCopper users blunt as Biotron sinks -35%; long-awaited COVID drug results same as placebo

Orthocell kicks off collagen-based dental bone repair product sales in Canada; eyeing next stop Brazil

As Nvidia cools, we're looking to Aussie AI

CBA breaks trading record on strong day for Aussie financials

Week 36 Wrap: AI hype wave tested again; Oz per capita recession continues; AirTrunk’s $40B+ payday

Red Mountain Mining: record gold prices, two projects, two greenstone belts

Laramide sniffs prime Kazakh uranium, with agreement over 6000 square km land position

Metallurgical testing shows saleable copper and pyrite from QMines' Develin Creek project

Shekel Brainweigh investor presentation webinar – the future of retail automation

Perseus Mining boosts stake in Predictive Discovery to 19.9% as latter's flagship project stalls

Featured News