I think the news yesterday and the ensuing price action shows TSN management need to seriously consider a big consolidation like the 10 to 1 I suggested in my earlier post.
There is way too many shares on issue. A 10 to 1 consolidation would leave us with a touch over 170 million shares approx.
Yesterdays news should have seen a decent price rerate in my opinion but we didnt get anything because people started selling large amounts of shares into the news making it difficult for us to make any gain share price wise.
Lessening the number of shares on issue may mean that there is less selling on days like yesterday allowing the stock to rise. If we cant get a price increase after yesterday I dont know what could move the price. There are just way too many shares floating around and Management need to consider doing something about it.
TSN Price at posting:
0.4¢ Sentiment: None Disclosure: Held
