Consolidation and shareholder concerns, page-8

some good thoughts there.
In theory, there is nothing wrong with a Consolidation.
But it is all about perception.
If all things remain equal.
If you have 1,000m shares at 10c each, you have $100m m/c.
if you have 100m shares at $1, then the mkt cap is $100m.
as we have all experienced, after consolidation the m/c drops because the new SP does not remain at $1, but it drops down to just say 80c.
Why?? If all things remain equl, why?

It is because of perception. Perception that the particular coy is still only a 10c share.
That's fact, and remains so UNTIL there is a change in perception.

So what changes that perception?
A market making moment, that's what.

That could be a takeover, drilling success, a Farmin, sale of Red Gully etc etc.

This is not inventing the wheel. It is based on our experiences.

So what people are saying, is that EGO needs to wait for that market-making moment, then consider the consolidation.

Certainly, imho, the Unmarketable Parcel sale needs to go ahead as planned. That will reduce the register by 4,600 I think? Save coy a lot of money.

A consolidation will improve the "look" of the coy, and theoretically signals a change from "penny dreadful" to serious explorer and producer of gas in WA.
But if the consolidation presages a drop in Mkt Cap, then we have gone backwards. We all lose.

Of course the danger at that point is, the potential for a predator to grab EGO on the cheap.
All they would need is to persuade ERM to sell, and we are history.

Lets get some serious market-making runs on the board, then consolidate.

cheers