TOX tox free solutions limited

consolidation 1 for 8, page-11

  1. 5,784 Posts.
    This move if fine with me.

    I agree that most stocks that do consolidations their prices fall - but you have to ask yourself were these stocks making a profit and growing profits before the consolidation and then continued to grow profits after it? Most that consolidate are loss making dogs. TOX is not one of these.

    Show me JUST ONE example where a company was making nice profits pre their consolidation and continued to grow profits after their consolidation - and their share price went down??? Bet you can't!

    On the other hand - look at IWL - they were stuck at 26 - 30 cents while growing profits - just like TOX are in the range of 11 - 14 cents and making and growing profits.

    Then IWL did a 1 for 5 consolidation - making them $1.50. They continued to grow profits organically and then were able to raise a small amount of capital easily with good investors that hold the stock (and not sharks that want a stag profit) to acquire JDV which added further to profit growth and more organic growth - the result is that IWL is now $4.50 a year and a half later - tripled in price (got over $5 at one point).

    Does this mean TOX will do this? No! But if TOX continue to grow profits at good rates they will be rewarded by attracting a better type of investor that will not be trading the stock.

    If they don't grow profits they will fall in price - but they would anyway even with no consolidation under that scenario.

    I see it as a great move - just 70 million shares that will be more tightly held by investors and not day traders and a 80 - 90 cent share price that will appeal more to small cap funds.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.