pala-blackrock: what price a takeover?, page-18

The number of shares PEN has IS an issue. Currently there is ~3b shares ex perf rights, options, salary sacrifice, deals with others, etc. There is also going to be a CR down the track (I would say somewhere in the next 6 months) and ANY any extra freebies to come once the rest of the $100m finance is secured.

In another 2 years you could look at PEN having ~5b shares on offer. The top 10 in the ASX 200 do have shares that are in the billions, but we are not in their league, so for a small penny stock, it is an issue!

People seem to speak about liquidity quite often but don't acutally know the meaning of it.

Liquidity is spoken about in terms of 'how quickly you can convert whatever holding/s you have to cash' i.e. turnover. It doesn't matter if you have 10b shares on issue or 100m shares, it means the same thing.

For e.g. if you wanted to get rid of 5 million PEN shares TODAY, how liquid is PEN @ 2.5c? Answer: Not very, as you would have to dump on market, and then, be stuck with very different prices.

Say PEN did a 5 for 1 consol, you will have ~600m shares ex all the stuff I said above. 600m shares is more than enough to produce liquidity if the market is in the right mood.

My personal view is that I hate consols and I hope somehow I can get away with PEN not doing a consol, but somehow I think that won't happen.