You show me a stock that has been destroyed by conducting a consolidation and I'll show you a company that was already destroyed!
The outcome that you are looking for from a consolidation is market validation. Meaning that currently the market views a 7.5 bill SOI stock as trailer park trash and will always overlook it and rightly so. A 20/1 consolidation here would turn that around and therefore if and I stress IF the trials are successful then this becomes an attractive prospect with a tighter book. But stocks have never failed because of consolidations, they've failed simply because they're shite stocks! Pretty simple.
It's the way the market views things is what you want to get your heads around.
Don't believe me? Take a look at the NEU story, a fantastic journey post consolidation.
Cheers
PS, anyone that says SOI doesn't matter is blissfully deluded.
IMU Price at posting:
2.4¢ Sentiment: None Disclosure: Held
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