Hey mate, Im strictly talking about consolidations on the ASX, not ratio changes with American Depository Shares which is what your referring to here. Nice example though, even though if you look at market cap on the chart it clearly went down for a year or more after this.
If you find an example of even this happening on the ASX let me know, because Im yet to find one, I can point to 100 examples of it going down but not one example where you couldnt of got in at a lower market cap post consolidation.
Thats the point whenever a consolidation is announced, it makes perfect sense to sell and buy back in cheaper, if not, show me an example where it didnt work, just one, im sure they are out there but literally had this argument 100s of times on hotcopper and there hasnt been one yet, I genuinely want to find one its like a game at this point, but even finding one the fact remains they are needles in hey stacks , 95% or more of the time you can get in lower post consolidation, so ill take those odds anyday.
Sure there are examples of stocks doing a consolidation then months later going on massive runs because of news etc, but not before a dip, the point is anytime a consolidation is announced on the ASX you can sell and then get in cheaper post consolidation.
Im just hoping they have a plan to avoid it all with this $40 mill, look at companies like MMI, it was trading under 1 cent last year and now trading 6 cents, with no consoldiation needed. The managed to get investors onboard at the penny stock level and build the company up.
There really is no excuse for a consolidation outside of listing requirements, it really is just a means for management to do more cap raises at a cosmetically high price.
ATH Price at posting:
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