XTC xtc lithium limited

XTC General discussion, page-1293

  1. 453 Posts.
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    @voncee a few of your peers here are trying to explain that a share consolidation is not a bad thing for you, as an existing shareholder.

    Suppose you hold $1 worth of stock - 100 shares at 1cent each. As an investor looking for a capital gain, you want your $1 to turn into $3.

    If the company did a consolidation at 20:1, instead of holding 100 shares, you now hold 5 shares. However your 5 shares are still worth $1. They have each essentially become 20X more valuable.

    The growth of your $1 turning into $3 is dependant on the overall value of the business increasing, not on the number of shares outstanding.

    So to that point the gentlemen here have added that lifting the SP from the pennies will be a potential factor that adds comfort to big backers that will help the companies value to grow. It's naive to think that we can get to 20c - 40c without significant funds being raised. We will be diluted in my opinion, however that same capital that dilutes us is also what propels the SP forward.
 
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