On the face value consolidation does not reduce the value of holding. But history does tell you in most cases (perhaps in nearly all cases when company management has been suboptimal), that consolidation practically results in kissing your holding goodbye. I have posted previously on this. In short two consolidations (as a result of continued poor performance following one consolidation) then your share value is not worth tiring the eye to check.
If a company with a large number of shares on isdue is going to do well then the best thing is for management to sell itself better (e.g. keeping the market informed on regular baes) and once there are some result/revenue then do a share buy-back.
Consolidation when company is at low SP marks, is a short term strategy often hurting long term (I.e. loyal) holders to attract new investors.
MLS Price at posting:
0.2¢ Sentiment: None Disclosure: Held
