Consolidation does not create shareholder value; it merely inflates the share price cosmetically, giving it more room to fall. The primary benefit is for management, allowing them to raise capital without the stigma of a "penny stock." As
@Jasper22 notes, it favors post-consolidation buyers, while pre-consolidation holders face a declining market cap, repeated capital raises, and significant dilution.
As I said every single time without exception when a consolidation is announced, you can buy in at a cheaper market cap post-consolidation. The pattern is undeniable. If anyone wants to argue otherwise, they should provide a single example where a stock's market cap increased
and sustained that increase following a consolidation and you couldnt get in cheaper, just for examples sakes, as you said can you show one example? ive showed several, can you show one?
The reality is simple: consolidation doesn’t create value; it only
reshuffles the share structure. What follows is the real story dilution, further capital raises, and a declining market cap. If 99% of the time a certain action leads to destruction of shareholder value, why on earth would you be for it?
(20min delay)